Buying or Selling Overview
Buying or Selling Resources
First-time homebuyers may feel overwhelmed by all the conflicting advice and emotions that naturally accompany a significant financial transaction. With so many variables to consider and few firm answers or guarantees, homebuyers often must make the best decision for themselves in the face of all the uncertainties surrounding a real estate purchase.
Location, Location, Location
The primary dilemma faced by homebuyers is that they are largely confined to selecting from an inventory of homes that are for sale, unless they are buying into a new residential development. So, homebuyers that are targeting houses within a particular location, after having the "location, location, location" mantra drilled into their heads, may discover that nothing in their desired location is available or affordable. Or, if a home is availabe in their desired neighborhood, the house itself may be too small, be located on a busy street or have an inefficient floorplan. Too bad every house isn't located on a quiet cul-de-sac with ocean and mountain views, top public schools, a modern kitchen, light and bright rooms, and convenient freeway access. In lieu of buying the ideal house, the would-be homeowner then must weigh the compromises offered by the houses that are available.
Read All Disclosures
Once the buyers have identified a potential home, they will want to learn as much as possible about their future home. Accordingly, buyers should carefully review any disclosures offered by the sellers, as well any reports prepared by professional inspectors or contractors, such as home inspection reports, termite reports, lead paint disclosures, environmental hazards reports, and natural hazards reports. Invariably, some item will be amiss as houses age, neighborhoods change and building codes are updated. So, the buyer must investigate how significant a danger a potential problem may pose as well as the potential cost to remediate the problem.
Gazing into a Crystal Ball
Is this a good time to buy? The truth is that one person's buying opportunity may be another's sell signal. The answer to this question is tied closely to an individual's finances, as well as his or her short-term and long-term plans. So, instead of trying to guess which way the market is headed, focus on how much you could afford to pay, what financial risks you will be assuming, and what actions you will take if any of your planned or unplanned risks manifest themselves.
Ask Questions
Most importantly, feel free to ask questions and seek advice from your real estate agent, loan broker, or colleagues who are already homeowners. If you don't understand an item raised in your home inspection report, follow-up with your real estate agent or the person who conducted the inspection. If any repairs are needed, get bids from contractors, painters, and plumbers beforehand so that you are not surprised by any costly repairs once the house is yours.