What to do Before you Buy a Home
If you’re thinking about buying a home, there are a few things that you can do before jumping into the housing market that can make your life a lot easier! I’ve listed my top five things that I have found extremely helpful to not only me, but also my clients.
1. Get your finances in order.
Buying a house is a big deal and probably the largest financial commitment you’ll ever make.
Start by getting a full picture of your credit and obtaining copies of your credit report. Ensure everything is correct so you can move forward confidently.
Next, find a reliable lender and get pre-approved for a loan. Being pre-approved for a loan will put you in a better position to make a serious offer when you do find the right house.
2. Stay in your budget
Finding a house within your budget is easier than it sounds. Oklahoma provides great opportunities for sellers and buyers in nearly every price range, and it’s my job to help you, so take a deep breath and know we will find you the perfect home!
There’s a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.
3. Hire a professional.
It’s easier than ever to go online and browse popular real estate apps which is great, but when it comes to actually buying the house, I always encourage people to hire a professional realtor. As a realtor, I do so much more than help you buy a house, I advocate for you throughout the entire process. I can help you strategize during the bidding process, answer questions about inspections and appraisals, and make sure you know exactly what to expect on closing day.
Plus, there are several perks to having a realtor. For example, I can set up a unique search just for you in our multiple listing system (MLS). Then we can adjust how often and how soon you are notified about new homes in the area where you hope to buy. And because realtor receives access to homes on the market before apps like Zillow and Trulia, you have a better chance of finding a house before people who aren’t using a realtor.
4. Do your homework.
I almost titled this section “Let me help you do your homework” because when working with a realtor, most of this “homework” is really just asking me, because it’s my job to know the state of the market in Oklahoma. Knowing this can help ensure you get the best deal on a house. For example, what are current interest rates? Is the market favorable for sellers or buyers? What is a good price per square foot?
One great tool I always recommend to look at is “neighborhood comps” or comparable sells. These comps will give you a good idea of what a reasonable price is because they show you the price of homes with similar features in similar neighborhoods that have sold recently.
Knowing all of this will help us come up with an asking price that’s competitive, but also realistic.
5. Think long term.
I always encourage my buyers to picture themself in the house they are looking at 3 years, 5 years, and 10 years down the line. Will this house work if your family grows in the near future? Or if your kids will leave the home soon? What are the schools like? Is this in an area that is growing or dying? Are you wanting to make improvements, or are you hoping it’s move in ready?
All of this is important to think about when you consider your home’s resale value down the line.
It’s also important to know the state of the house. This is where inspections are so important. Inspectors can point out potential problems that could require costly repairs in the future.
Next Steps
If you’re thinking about buying or selling a home, I’d love to become a small part of your journey. Contact me anytime at traceyrice@kw.com or 405-226-3770 and we can work together to sell your house and/or find the perfect home for your family.