5 Quick Tips for Buying a Home
Looking to buy a home in Baldwin County? Here are five essential tips for making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit because your credit score can have a major impact on getting a mortgage. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house.
Find a house you can afford.
As with engagement rings, there's a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Here's a good article on determining what you can afford before you purchase a home. Don't forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc...
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can't pick up from surfing the web. That's why you're better off using a professional agent than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process.
Do your homework.
Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? In order to get the best possible price, you need to understand market conditions.
Next, look at sales trends of similar homes in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that's competitive, but also realistic. Otherwise, you may end up ticking off your seller. Excessive low-balling is usually a waste of your time and not a great tactic for getting the best price.
Think long term.
Obviously, you shouldn't buy unless you're sure you'll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home's resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.
I always tell my clients that they should always by a home with re-sale in mind in a few years.
For a more in depth guide, check out the 11 Step Series to Buying a Home.
Please give me a call if you are wanting to buy a home in the Baldwin County area which includes the cities of Spanish Fort, Daphne, Fairhope, Foley, Gulf Shores, and Orange Beach.
Jeff Nelson
IXL Real Estate – Eastern Shore
251-654-2523
jeff@livegulfshoreslocal.com
