How to purchase your first home
So you want to buy a home.. how exciting! & also scary... Here are some of the most important steps towards purchasing your first home.
Get Professional Guidance
You can’t go through this journey alone. Finding the right Realtor to guide you through the home buying process is the key to your success. Your licensed Realtor should have market insights and help you understand the contracts involved with purchasing property.
How to find a trustworthy Realtor? Look no further - you can work with yours truly! You can also shop around a bit by asking people you trust for a referral, meeting a Realtor at an open house, or by searching online.
If you meet an agent at an open house, I would recommend avoiding working with the Seller’s agent. That’s called dual agency and it’s tough to know whether the agent can truly have your back if they’re also working with the seller.
People always ask how soon they should start working with a Realtor - It’s never too early to start the conversation. They may be able to give you advice on prepping even 6 months to a year before you’re truly ready.
Also, don’t worry about how you’re going to pay your Realtor. Typically, the seller pays for both brokerages commissions.
Work with a Local Lender
When a seller is considering whether or not to accept your offer, they look at all aspects of your offer - it isn’t solely based off of which buyer can offer the highest price. They consider the terms of your offer and who you’re working with.
The lender controls the timeline of when you’re able to close. The seller wants to know that your lender understands the local market, can close quickly, knows the specific closing costs for the area, and has fully gone through your loan file so that they can guarantee you’ll be able to obtain the loan.
Local lenders work with local appraisers who can more accurately evaluate your homes value because they know the ins and outs of our local marketplace.
The best lender referral comes from your Realtor. They know which lenders have the best reputation and can recommend someone they’ve worked with before, so you’ll have a fierce team behind you!
Set Search Parameters
Now that you have an awesome lender and Realtor team behind you, you’ll understand what you can afford and which neighborhoods you should focus on. Try to purchase below your means, if possible.
Ask your Realtor about some lesser known areas you could purchase in.
Tour Homes
You can attend open houses or ask your Realtor to schedule a private showing.
Be polite to the Realtor who is hosting the open house and feel free to ask them questions. If you end up submitting an offer, they might even remember you.
Things to notice while touring:
Look past the staging, it’s meant to make you fall in love with the home. Try imagining your own furniture in the home.
See if there are items you’ll want to remodel and think past just the kitchen and bathroom: fencing, garage doors, cracks in the driveway, floors that need refinishing.
Think about where to hang your television (if you have one). Stagers don’t typically use TV’s because it doesn’t look as nice. But once you move in, it can change the entire layout/usability of the living space.
Does it fit your lifestyle? If you’re a runner, does the neighborhood have sidewalks or trails? If noise pollution is important to you, is there an airport nearby or a busy road?
Review Disclosures
Think you’ve found the one? Don’t fall in love too quickly, you’ll need to review the disclosure packet. In the Bay Area, we provide buyers with disclosures about the property which can include inspections, items the seller needs to disclose, the preliminary title report, etc.
Have no clue what you’re reading? Seek advice from your agent! They should be able to help you understand the disclosures.
Check Comparable Sales
When determining what you’d like to offer for a property, your agent will help you figure that out by pulling the “comps” - the comparable sales in the neighborhood. I like to look at properties that have recently sold, in the last 6 months, within half a mile from the property that are similar in terms of updates, bedroom/bathroom count, and size.
You want to submit an offer that’s competitive and on par with the neighborhood sales but you don’t want to completely overpay for a property.
Write a Competitive Offer
Your agent will help you figure out how else to stay competitive besides price point. They should check with the seller’s agent to determine what’s important to the seller. It could be a fast close or maybe they need to rent the property back from you for a bit after closing. Sometimes it’s something less contractual - like promising to take care of their garden!
Get your Heart Broken
It’s all a part of the process! Try not to fall head over heels for a home until you have the keys in your hand. But you’re only human, you may fall for a property and get your heartbroken after not getting your offer accepted. Feel free to lean on your Realtor for emotional support. It just wasn’t meant to be. The home for you is out there somewhere - just need to practice patience and resilience!
Every home will have tradeoffs. No home is “perfect”. We aren’t looking for perfect - we’re looking for the home that fits you best and is within your price range. Every home will have things that could be better. It’s about finding a home that has qualities you love and things you don’t love (but can live with).
Be Available During Escrow
Once you get your offer accepted, things can move quickly. Make sure you’re responding to the lender, escrow officer, and Realtor in a timely manner. If you’re confused with any of the process, don’t be afraid to ask!
If you’ll be out of town at all, please share that information with your Realtor.
Sign your Closing Documents
Either in person at the escrow office or with a mobile notary at your home, you’ll set up an appointment to sign the final documents. There are HUNDREDS of pages - so break out your favorite pen and do some hand exercises to warm up. The notary will help you understand the documents by explaining each page. Make sure you have identification on you and schedule out at least an hour!
Get Keys!
Congratulations! Once the county records you as the new homeowner, your Realtor can hand over keys and you can celebrate!
The process can seem like A LOT, but if you take it one step at a time, you’ll be fine! If you have any questions at all or want to chat about starting the home buying process, simply reach out.
I’d be honored to help.