Buy Your Next Home Like a Professional

Know Your Neighborhoods.

The old cliché is so true: location, location, location. It's a good idea to do your research and familiarize yourself with the different neighborhoods in the area or city you're buying in.

Of course, this is much easier if you are buying in a city you know well. This can be a big task, so consider purchasing a tangible, printed map to write the names of each neighborhood and outline them with a highlighter.

Then, make notes about each one and list the pros and cons as you learn them. It's okay to write things like, "houses look like shoeboxes" in your notes. This will help you create a visual for each neighborhood. Don’t forget to jot down notes on the amenities and HOA fees. There's nothing worse than thinking you’ve found your perfect home only to realize it's in the neighborhood with the exorbitant HOA fee.

Now when you're looking at available or sold listings online, you can use your map and notes to quickly identify if it's a property in one of your target neighborhoods.

Know Your Listings.

Start learning everything you can about the real estate market where you are buying or selling. Contact a local real estate agent and have them set you up with an automated search so you can view new listings as soon as they hit the market. As you narrow down your search and get close to buying, you can also start to look at sold listings. Sold listings will paint a picture of how desirable a neighborhood is. If you see homes in a particular area consistently sell at or above asking price, you know you'll have to write an aggressive offer for a house in that area.


Know New Construction.

If purchasing a new construction home is a possibility for you, then it's important that you talk to your agent about the different developments available and their price points and benefits. Purchasing a new home has both advantages and disadvantages so make sure you go into buying one with all the information you can get.

Remember to budget for things like appliances, window coverings, garage door openers, landscaping, and more that may not be included in the sale of a new home. Be aware that often the homes you see online in new developments are not actually built yet. It may be a photo of a similar home or a digital rendering.

In a hot market, you can usually expect to pay a slight premium if you put a contract in on a home that is "to be built."

Start learning everything you can about the real estate market where you are buying or selling.

At the end of the day, you need to trust your instincts and go for what you want, as opposed to a home that is complete and sitting vacant. The builder would rather get their "inventory,” or completed homes, sold because they are most likely paying interest on their construction loan.

Know Civic Changes.

Research the upcoming major civic changes the local municipality may be planning, such as new parks, walking and biking trails, open spaces, and other amenities. These developments usually have a positive impact on real estate values and other less savvy buyers may not realize this.

The opposite can be true as it relates to widening roads, installing new overhead power lines, or building surrounding developments, which could include commercial or industrial. Most major projects have public notices that should be available online.

Know Your Finances.

One of the most powerful tools a savvy buyer can leverage is the ability to demonstrate their financial strength to the seller.

If you are paying cash, you should have a "Proof of Funds" letter from your financial institution, including the phone number for the banker who created the letter. If you are obtaining a mortgage, consult with your mortgage professional about the different levels of pre-qualification.

Not all pre-qualification letters are created equal and, the more information you give your mortgage professional, the more confident they will be in your ability to obtain a loan. Talk with your real estate agent about your pre-qualification to ensure they provide the seller of the home with the most compelling argument possible regarding your ability to finance the home.

Know What You Want.

At the end of the day, you need to trust your instincts and go for what you want. This is not to say that buying a home should be done without considerable thought; however, there will come a time where you just need to go for it. If you do your research, follow some of the suggestions above, and work with a great agent, everything will work out in your favor.

Happy house hunting!