After years of trying unsuccessfully to list my home on my own, I finally realized that I needed some serious help. I began looking for a great real estate agent who could help me out, and after interviewing a few professionals I found someone that was really in tune with what I needed. They sat down with me to talk about my needs and worked hard to help me to identify different homes that could work for my family. I wanted to make a blog all about selecting the perfect agent to work with during your house hunt. Check out this blog for great tips on choosing agents.
Purchasing a home for the first time is a major financial step. It can also feel overwhelming for some. Finding the right home in your price range may be more difficult than you anticipated. These issues may even be compounded if you live in an area with a hot real estate market. The good news is that there are a few things that first time home buyers can do to get an edge when it comes to buying their first home.
Hire A Real Estate Agent
Unless you know a lot about the local real estate market, it's a good idea to hire a real estate agent when you are looking to buy a home. A real estate agent can help you find a home that works for your needs in the area you desire. They have knowledge of the market and often know about properties before the general public is made aware. Real estate agents work on commission, which is typically around 5 percent of the sale price and split between the buyer's agent and the seller's agent. Usually the seller pays this fee and has it built into the sale price of the home.
Consider Your Future
Another thing that first time home buyers should consider is where they will be in five years. If you are planning on moving or expanding your family in that time, it's important to take those life changes into consideration when purchasing a home. Experts recommend staying in a home for five years before selling in order to either break even or make a profit during the sale. Often closing costs and real estate commissions can eat away at profits if you sell during the first five years. If you plan on moving out before then, you may want to look into properties that are easy to rent out.
Get Your Financing In Order
Another tip for first time home buyers is to get your financing in order before looking at homes. Getting pre-approved or pre-qualified for a mortgage is a great way to show sellers that you are interested and motivated. It's also important to take a look at your credit score and ensure that it is accurate. The higher your credit score, the lower your interest rates. Saving up for a down payment is also important. A down payment of 20 percent or more will allow you to not have to pay private mortgage insurance.
Purchasing a home for the first time is a major step. If you are planning on buying in the near future, a real estate agent can help you find a home that fits your budget and your needs. It's also important to look into homes that will suit your needs for the next few years and to get your financing in order before looking at homes.