First Time Home Buyer Purchasing Plan

Are you trying to purchase a home and take advantage of the new Tax Credit?? Well, you’re not alone, and as a First Time Home Buyer… the task is now even more overwhelming because of the number of foreclosures, short sales, and standard sales available. Each of these types of sale have widely varying terms and conditions! Home buyers need to watch for a variety of factors including time, conditions of the home, and stringent inspections. So, if you’re looking for a house, or plan to in the near future, here are some tips every home buyer should know:

Short sales that have not been pre-approved generally take much longer than foreclosures or standard sales to close… This is where your agent will be hugely helpful!
You should look at several houses before choosing one. So don’t feel bad if you haven’t found the right one yet.
Before deciding against the house, make sure it’s because of large factors and not cosmetic issues such as the wall being dirty.
Don’t be turned off by paint colors – this is such an easy fix that it shouldn’t deter you from a great bargain.
If you need to buy appliances for the house, consider buying Energy Star certified ones to get the tax credit and be green.
Don’t shy away from homes that are not in move-in condition. If a few weekends of work will increase the value by $20k – it might just be worth the work.
Compare homes in terms of how much you’re paying per square foot in homes that have similar features, your realtor will give you the comparables before bidding.
Don’t place all damages on the same comparison level, for example a broken tile is far less serious than a leaking roof.
Drive by the neighborhood at different times to understand the community and noise level.
Try to choose an area with good schools – this will come in handy even if you don’t have kids in terms of reselling.
Be flexible about your wants. Limiting your search to a set amount of features can prevent you from seeing other comparable properties.
Get pre-approved first (not pre-qualified), so that when you’re ready to buy, the underwriting process is already underway
Always check out the comparables for an idea of how much to bid. Your realtor can hook you up with info about how much similar homes have sold for in that neighborhood in the past 6 months.
Keep in mind, in this market, many homes are being bought up with the incentive of the first-time home buyer tax credit, so just because you write an offer – doesn’t mean you are going to win.
Take your digital camera along when you go to look at houses. Look at teh Google Walking Tour to find your favorite spots.

Remember – if you had a $200,000 IRS lien -you would hire a CPA. If you had a $200,000 Law Suit – you would hire an attorney. You are making a HUGE Investment… hire a Real Estate Agent! Seller’s normally pay their fees! We have GREAT Realtors that we work with, and would be glad to offer recommendations!

Call Steve and Eleanor Thorne, First Financial Services, 919-649-5058.