The seamier districts of the real estate world can have great educational value for the uninitiated. If you are considering buying a home for the first time, you may wind up with a house from which you will never leave except in a coffin or you may only stay there for as long as it takes to unload it to the next sucker, but one thing will be shared by you all: you will be much wiser the next time you have any dealings in real estate. If only you had stopped long enough to not just learn the following lessons every first-time homeowner should study, but had treated these lessons with all the serious you put into learning to master your favorite video game or figure out the plotting of “Once Upon a Time” or “Lost.”
Get a Comparative Market Analysis (CMA)
Has the term comparative market analysis or the letters CMA come up yet in search to buy your first home? Probably not. If you were lucky enough to find a real estate broker who mentioned it, good for you! A comparative market analysis will provide you with arguably the most valuable information you can have before marking an offer on a house. Information that, oddly, many first time home buyers never have. This little nugget of knowledge contains the prices that similar homes in the area have recently sold for.
Negotiable Closing Costs
Closing costs include things like title insurance, escrow fees, mortgage loan fees and at t orney fees. You might be surprised to discover that average closing costs vary substantially from state to state . Many of the costs associated with closing the sale of a home have traditionally been structured so that the buyer is responsible for certain things and the seller for others, but not all elements of this division of responsibilities is always written in stone. This blurring of lines means that many closing costs are open for negotiation and since it probably won’t hurt to try a more equal sharing of the burden of buying there is really no reason not to make the effort. Take escrow, for instance, where it usually the cu and when you hear that word thing deposit. This money is placed under the control of a third party while the deal to buy is being settled, but eventually the money winds up in the hands of the seller. If you negotiate no other closing cost, you should exhibit why it only makes sense for the only one of you actually benefiting from escrow service to pay for the cost associated with that service. And, frankly, you should also negotiate to have the seller cover any costs that have been prorated between negotiations and closing. These costs would be things like property taxes and utility bills.
Amazingly, some first time home buyers do not consider the potential resell value when they are buying a home . Maybe it’s because it’s not very romantic to think that you will be selling your very first home or maybe you think there isn’t anybody alive who would not love the property as much as you. Whatever the reason, not looking at the possibility of reselling the first home you buy within a calendar has the potential to be the biggest mistake you can make. It’s also hard to do. When looking at a house through the eyes of a buyer it can be incredibly difficult to objectively see it like a seller. Things about the property and the house and the neighborhood easy enough to overlook because of the things you love may loom as much bigger negatives if you think about how you would try to turn them into positives were you selling the home.
Look, you don’t have to have driven through the seamy district of real estate town to know that buying a home for the first time is easy in any way. You’ve heard the nightmarish stories from friends or family or, at the very least, you’ve seen movies like “The Money Pit.” Here’s a great tip that no first time home buyer except heirs to corporate fortunes can afford to dismiss: lessen the headaches of buying your first home significantly by timing things as perfectly as possible. Which translates into doing whatever it takes to avoid bad timing. That means not deciding to buy a home a month before your lease is up. You can also reduce that thumping sound inside your head by scheduling closing between the end of the first week of the month and the middle of the third week of the month. Why? Because for various reasons, most buyers are advised to wait until the end of the month to close as a way to save a little bit of money, but all those people taking that advice creates a bottleneck at title and escrow companies experiencing their busiest time of the month. You want to close quickly and get into the house while not really losing all that much money in the process? Buy your first home so that you can close the deal in the middle of the month.