Homebuyers today are educating themselves more than ever. According to a recent article in the National Association of Realtors, 75% of millennial homebuyers are doing their homework and researching how to buy a house before buying. That’s a lot of people getting information about a major purchase. In the age of Amazon reviews, Consumer Reports, and review engines, finding out as much as you can before buying, is inevitable. But, do buyers need to know everything about the ins and outs of a real estate transaction before being comfortable enough to buy? We don’t think so. Nobody wants to be told how to do their job but educating yourself on the right topics really can protect yourself, which is the main reason in the first place.
While there are literally thousands of articles about homebuyer tips, buyers really need to know 4 major things.
#1. Know your finances.
The last thing you want is to be sitting in an office with a lender when they in get a copy of your credit history and discover that can’t afford a home because you have foreclosures, bankruptcies or delinquent accounts. Find all of this out for yourself first. Make sure you understand your own finances before meeting with a lender. Get a copy of your credit history and correct any mistakes, bring any delinquent accounts into good standing order, and verify accuracy. Make sure you have a reserve account and understand all your debts, income, assets, and liabilities.
#2. Understand how long it takes.
This may be something that buyers don’t even realize before the home buying process. From start to finish a real estate transaction can take anywhere from 30 days to 120 days or more depending on how long the buyer took to look for homes. Just because you’re now on the market doesn’t mean you’ll instantly find something. Maybe it does, but give yourself some time to look around, understand the market, save for a down payment or earnest money deposit, and then once an offer is made and accepted, it can take up to 45 to 60 days to close.
#3. Have your own real estate agent.
This is one of those things that most homebuyers don’t even realize. With most things we buy we typically go to the seller of the item. It’s different when it comes to real estate. You need to have your own representation, just as if you would have your own attorney in a legal proceeding. Your buyer’s agent represents you throughout the transaction and is there for your protection. The agent that lists the home has one priority, to get that home sold. A buyer’s agent wants to make sure that the buyer has the right home for them. It cost buyers nothing to enlist your own agent and they are worth their weight in gold.
#4. Understand the market.
As much as you can, try to understand what the current market is doing and understand that it changes between communities and cities. You don’t necessarily have to be an expert on real estate conditions but understanding your position and the current market can help you make an informed decision on the offer, terms, and price. Your real estate agent will also talk to you about the market but it’s important to take a little bit of time to educate yourself on what’s happening in your own community.
These four items are really the most important things that homebuyers should understand. We want you to make an informed decision, feel comfortable with your purchase, and not have any buyer’s remorse. Let’s help you find the right home in Sedona and surrounding areas today.