Preparing For Your House Hunt: A Buyer's Checklist

Buying a home is one of life’s most important decision and exciting adventures, but there’s much more to it than picking out the perfect floor plan. Even experienced buyers can find the process a bit complex and overwhelming. That’s why the time you spend preparing yourself before you start your search can be the best investment you makein your new home. As a buyer, it’s important to know the potential pitfalls and stumbling blocks that may pop up during your path to homeownership success. A decision you make now could down the road cause difficulties, delays, or worse, the realization that you made the wrong choice. So here are some things to keep in mind before and during your search:

• Do the math and establish your purchasing power.
Before you start cruising the neighborhood for open houses, you need to know which driveways you can afford to pull into. Meet with a lender who will help you determine which type of financing (fixed rate, adjustable, interest only etc.) will work best for you and how much you qualify for with each type. Also, getting pre-approved can put you in a much stronger negotiating position because it shows the seller that you are a committed buyer.

• Make a timeline.
As the old proverb says, “he who fails to plan, plans to fail.” Sit down with a calendar and set up your goals for the months leading up to your potential move date. Plan on getting pre-approved for a loan and looking for an agent three to four months in advance. The next two or three months will be spent looking for a house and the details of your actual move will be made in the few weeks before moving day. By setting up a timeline for yourself, you are more likely to stay organized, on task and goal oriented.

• Start surfing.
One of the most important tools you’ll need for your house hunt can be found right in your own home or office—the Internet. The majority of homes on the market are listed somewhere on the Internet because real estate agents know the majority of people turn to the Web first when looking for a new home. And why not? With just a few clicks of a mouse, buyers can see pictures, take virtual tours and map out locations for homes that contain features they specifically search for. Start looking on websites like AgentLevy.com, CaliforniaMoves.com, Realtor.com, Trulia.com and Zillow.com for homes that fit your particular criteria. You can register for e-mail alerts to have homes sent to you and your agent so he/she can investigate further.

• Location, location, location.
One can make a list of pros and cons for nearly every home in every neighborhood. That’s why it’s important to narrow your search before you start touring every house in town. Decide what neighborhoods work best for you and your family. Check out school districts, shopping and dining,public transportation, recreational areas and crime statistics.

• List your priorities and prepare to compromise.
The dream home you have pictured in your mind might not exist in reality—or at least not in your neighborhood or price range. Unless you are building a home from the ground up, there are often compromises involved in deciding on a property. So, you may have to sacrifice that extra large bathtub or redwood deck in order to get the home located near your child’s school that has the four bedrooms you require. Make a list of the features you are looking for in a house and rate them on a scale of one to five, with five being a feature you can’t live without. Then, bring your list with you as you tour homes to keep score.

• Would you like French doors with that?
Once you’ve found a home you like, consider the costs of upgrades, repairs or remodels and factor those in to your short or long term budgets. Remember that upgrades may add value to your new home. So it may be worth the extra expense up front, if you are planning on selling your home in the foreseeable future. Given the current buyer’s market, there may be no time like the present to purchase a home. In many markets, home prices have stabilized and in some cases even increased. So the perfect time to buy has likely come and to wait much longer could put you at risk of missing out on great deals and excellent inventory. With this checklist and the right market conditions, you are well on the road to home happiness!