Tips To Help Real Estate Rookies Hit A Financial Home Run
There is no need to break the bank when you purchase your first home, especially in today’s market. The trick is setting realistic and affordable expectations for a home, which can save rookie buyers some headaches.
“There are many attractive options for purchasing a starter home thanks to the low interest rates available today and the volume of sellers willing to negotiate their prices,” said Judy Hearst, regional vice president of Coldwell Banker Residential Brokerage. “Working with a real estate agent is especially important for first-time buyers, as your agent can help you navigate the course to cost savings with your investment.”
When searching for the ideal first home, remember the following:
· Budget wisely. Know just how much of a down payment and mortgage you can afford before you start your search. More importantly, get pre-approved for a loan. If you are renting now, how will the costs compare? According to a 2010 survey conducted by Coldwell Banker, 53 percent of single homeowners purchased a home because it is more cost effective than renting.
· Sort out your priorities. Is storage space more important to you than location? Is square footage more of a concern than the condition of the home? Figure out where you would be willing to cut corners to save money.
· Learn by example. Talk to your real estate agent about the cost saving methods they have seen other clients successfully implement over the years. Your agent is the expert, with both knowledge and experience, so they are in the perfect position to advise you on this matter.
· Power in numbers. While a home with an extra bedroom may not be necessary right now, it provides the option to take on a roommate to offset the costs or serve as an attractive office space.