Five Tips When Buying a Home

People looking to purchase a home in today's real estate market have the overwhelming need to find a "deal." I am a Realtor and speak with buyers frequently. They all mention the need to find something at a great price. That has to do with the current real estate conundrum and all the people they see who are in foreclosure or who have to short sell their homes. There are plenty of buyers who want to make a purchase but are very cautious. Here are 5 tips to help you find a good value:

1) Hire a Good Realtor

Buying a home could be your largest ever transaction so make sure you have experience and knowledge in your corner. Hiring a good Realtor will not cost you anything so make sure you do this. They can help you get educated on the real estate market by sending you what is for sale, what has sold and what homes have expired or failed to sell.

2) Educate yourself

You won't be able to identify a good deal if you are not following the real estate market. I could show you a tremendous value but you would not know it until you have some knowledge of the market. Have your Realtor send what has recently sold in the neighborhoods that you are considering. Become an expert so that when a good value shows up you will know it.

3) Preparation is important

Get all of your ducks in a row ahead of time. You don't want to find a deal and then lose it because you are not prepared.  For example, get your financing or cash arranged. Lending guidelines have changed so get pre-approved for a mortgage. Waiting to do this until after you find a good value might cause you to lose it. Ready - aim - fire, not fire - ready - aim.

4) Act Quickly

Do not procrastinate. If you are educated on the real estate market, have a good Realtor, have prepared and a sweet value comes up don't him and haw around. Act on it. Do not let paralysis of analysis cause you to miss out on a deal.

5) Realism

Everyone wants to steal a home but it does not happen as much as you think. I watch the real estate market every day, all day and see only a few a year. However, I do see good value purchased frequently. If you are looking for an idiot or hard up seller to sell their for $500,000 for $400,000 then you will probably never buy. The real estate market is pretty efficient as all information is easily obtainable. However, you can expect to maybe buy that $500,000 home for $480,000.

These five tips will help you find a good home purchase. Educate yourself, prepare yourself, have a quality Realtor, be realistic and act quickly and you stand a good chance of finding that great home value.

Marc Rasmussen sells Sarasota FL homes for sale and has a Sarasota mortgage blog.

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