a person who makes a purchase.
synonyms: confused, intimidated, on edge, occasionally dishevelled.
antonyms: gambler, shooting in the dark, takes what he/she can get.
Contemporary example: “You’ve decided to buy a house, what’s next?”
You’ve heard all the horror stories involving multiple offers, unethical agents, inflated prices, and that the current market holds nothing but disappointment and despair. However, buying a house, even in the current market, is not about surrendering to the forces of real estate and taking what you can get. As a responsible buyer you can walk away fulfilled and content if you follow these 3 steps:
- Find a Realtor You Can Trust
Working with a professional who buys and sells real estate on a regular basis is of the utmost importance. Sure, we all know Aunt Sally who has promised low/no commission on your deal. But Aunt Sally hasn’t sold a house in years! She is well meaning but she is not equipped to position you effectively in a fast-paced and competitive market. There are plenty of capable Realtors out there, find your realtor-soul-mate. That’s why we come in all different shapes and sizes; find someone who you can relate to and have an honest working relationship with. Where do you start? Ask friends for referrals, or visit some open houses and take that time to ‘speed date’ with the agents. Then interview your top choices, ask them hard questions, get a history, and take a leap of faith.
- Get Your Finances in Order
Review your finances and find out what your limits are, then stay within them.
Get to know the types of products that will help you get the house you want; mortgage options, interest rates etc. Again, find a professional with a good understanding of their industry who can not only advise you, but one who will shop around and find the best possible product that will fit your needs and your financial situation. Don’t just walk into a bank and sign the first mortgage you’re offered. Your mortgage is going to be your biggest expense, long term. Find someone who will help set you up on the right financial path for you and your family.
- Educate Yourself
Contrary to the slightly dramatized stories you might hear, real estate is not a game in which you are a player or a gambler who is bidding to win the prize. You don’t go to auction hoping to win, you strategize based on facts and information. First thing’s first – know your market. Get out there and see what’s available in the markets where you want to be. Know the price differences between a Semi-Detached and a Detached home, a 2-Bdrm or 3-Bdrm house, powder room, parking garage, etc. Learn the numbers and find out where you fit in that sliding scale. Don’t be fooled by list prices; they’re often just an advertisement or more of a guide. A good Realtor will direct you to see the houses you can buy once the dust settles, not the ones that are listed in your budget.
Now you are prepared, educated, and confident that you know your limits. By completing these 3 steps you have positioned yourself to truly understand what you are buying. You know the value of the home you will make an offer on and you know what you are willing to spend on it. You also know what you’re willing to lose that home for; you are not playing a game nervously with money you don’t have. You are in the right place, with the right knowledge, and with the right odds that you’ll soon find yourself on the inside of that home looking out at your new neighborhood.