4 Required Skills for Every Home Buyer Before the Internet, house hunting in the real estate market took thorough research, smart decision-making and patience. As there weren’t any online searches available, you had to have an eye for potential listings and plenty of gas. Flipping through the real estate pages were a necessity, as well as driving to scope for open homes. To see the interior of a property, you had to physically go there! Negotiating skills were more essential, as most realtors and agents were concerned about selling the property rather than advice. These skills are important in today’s market, and there are a few additions. Self-control. NEVER spend more on a home than you can afford. Being a home buyer means that you are the ultimate decision-maker in the amount you spend. You have the primary control and are the only one responsible for overspending. This situation is common for many first-timers: your agent tells you to put in more for a specific home. Although the agent is helpful, if that payment exceeds your budget, it’s your right to refuse the advice. The home-buying process takes time, as you may have to change your housing wants/needs. It’s better to strategize around the real estate market, rather than constantly fighting it; exercise self-control. Math. You MUST first understand your budget in advance of house hunting. Many home buyers still see their mortgage qualification limit as the upper limit on what they can spend for a home. This is not recommended at all; if that is what you’ve been doing, stop it. Review your bills, bank statements, other expenses and even your financial planner or CPA. Record your monthly expenses, the cash to put into your home upfront, and the monthly amount you can spend on housing. Ask your mortgage professional to provide some financing scenarios that incorporates the amount you can afford. Work with your Realtor or agent to use that range to set your home search price range. If you live in a place where most homes sell for more than the asking price, find out how much more. Do research in a range that’s lower than you want to spend. Listening. Many home buyers may claim that their agent is either not listening to their wants or what they can afford. Although buyers may know their budget and what they want / can afford, they don’t necessarily know how to translate that to their agent. This can result in the agent showing you an affordable home that’s within your given range (but falls short of your “wish list”), or the agent using your wish list to find homes that may be more expensive than your spending budget. There may be clear communication on both sides, but most agents will not tell you that the property compromises your list of specifications or price. Smart buyers listen to the numbers, market data, information on unsuccessful offers, and to their spouse, partner, children or roommates. Successful buyers listen to the seller’s wants, needs and priorities and factor them into the mix. Discernment. It’s VITAL to be able of picking out what is useful, wise, right and important and disregarding. Doing your own math, creating a vision in your soon-to-be residence, and listening to trusted individuals are discernment tactics. You will need to exercise vigilance against over-optimism, over-confidence and over-spending.
Posted on: Sat, 17 Aug 2013 01:12:14 +0000
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