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The Internet is awash with short and incomplete lists of tips for homebuyers. For the many Americans unfamiliar with the home-buying process, trying to determine which tips to focus on could be confusing. Upon reading these lists, aspiring homebuyers must ask themselves, “Are these tips that industry experts would actually recommend, and are they worth spending my valuable time on?”
To remedy this problem, Market Leader gathered tips for homebuyers from half a dozen sources, put them all on one giant list, and, after removing the trivial and contradictory ones, surveyed almost 400 real estate agents about the importance of each tip. For the 17 tips featured in this survey, participants indicated whether they found them to be very, moderately or slightly important for homebuyers – or not recommendable at all!
The Market Leader blog staff also created an infographic, “The 6 Most Essential Homebuyer Tips,” that you can share on your website to educate current or prospective clients.
Did we miss a tip? Please share it in the comments!
Get a Home Inspection
91.4 percent of agents say this is a very important tip.
0.54 percent of agents don’t recommend this tip.
The tip: Get a home inspection to evaluate the safety and overall condition of your new home, even if it appears flawless.
Get Preapproved for a Loan
89.0 percent of agents say this is a very important tip.
0.78 percent of agents don’t recommend this tip.
The tip: Before you start house hunting, get preapproved for a mortgage loan.
Communicate Through Your Agent
89.0 percent of agents say this is a very important tip.
0.27 percent of agents don’t recommend this tip.
The tip: When you want to ask or tell the seller something, always go through your real estate agent.
Put the Deal Into Writing
87.5 percent of agents say this is a very important tip.
0.83 percent of agents don’t recommend this tip.
The tip: Get the seller to put every component of the deal and any verbal agreement into writing.
Include Contingencies With Offer
83.0 percent of agents say this is a very important tip.
0.78 percent of agents don’t recommend this tip.
The tip: Include important contingencies, such as financing and property inspections, with your offer.
Develop a Wish List
82.4 percent of agents say this is a very important tip.
0.27 percent of agents don’t recommend this tip.
The tip: Come up with a realistic wish list. Find out what you can afford in terms of house size, neighborhood and amenities.
Know Your Local Market
75.6 percent of agents say this is a very important tip.
1.7 percent of agents don’t recommend this tip.
The tip: Know as much about the local market as you can. Use your agent’s CMA to learn about the selling price of comparable homes and the strength of the local real estate market.
Prioritize!
68.5 percent of agents say this is a very important tip.
1.11 percent of agents don’t recommend this tip.
The tip: Decide what’s most important to you before the negotiation so you know what parts of your offer you’re most comfortable giving up.
Look Into Government Programs
57.7 of agents say this is a very important tip.
1.36 percent of agents don’t recommend this tip.
The tip: Look into programs for first-time homebuyers. See if you qualify for the lower interest rates, low down payment options and down payment assistance programs some banks and governmental organizations offer first-time homebuyers.
Research Real Estate Agents
54.7 percent of agents say this is a very important tip.
7.61 percent of agents don’t recommend this tip.
The tip: Don’t just work with the first real estate agent you come across! Do your homework and find one you’re comfortable with.
Keep Other Houses in Mind
43.9 percent of agents say this is a very important tip.
5.8 percent of agents don’t recommend this tip.
The tip: When you begin negotiating on a specific property, know of other houses you’d be interested in buying. You don’t want to be so desperate to buy a certain house that you give in to whatever the seller wants.
Be Smart With Your Contingencies
40.6 percent of agents say this is a very important tip.
9 percent of agents don’t recommend this tip.
The tip: Avoid including unnecessary contingencies in your offer. Doing so will make it less attractive.
Keep Negotiations Short
39.8 percent of agents say this is a very important tip.
4.8 percent of agents don’t recommend this tip.
The tip: Avoid long, drawn-out negotiations, which can negatively affect the chances of your offer being accepted.
Shop around for Mortgages
37.9 percent of agents say this is a very important tip.
4.7 percent of agents don’t recommend this tip.
The tip: Shop around for at least several mortgage quotes before choosing one.
Ask for More Than You Want
32.1 percent of agents say this is a very important tip.
10.1 percent of agents don’t recommend this tip.
The tip: Ask for more than you want during negotiations, without asking too much. You can “give in” to the seller without actually giving up the things you want!
Scope out Neighborhoods, Neighbors
31.9 percent of agents say this is a very important tip.
7.1 percent of agents don’t recommend this tip.
The tip: Talk to neighbors to get the inside scoop on what it’s like to live in the neighborhoods of homes you are interested in. While doing so, gauge if you would like to live next to these people for the foreseeable future. Bad neighbors can affect your property’s value.
Connect With the Sellers
24.9 percent of agents say this is a very important tip.
27.5 percent of agents don’t recommend this tip.
The tip: Establish a connection with the sellers. You may be able to get a better deal if the sellers see you as a person, not just an opportunity.
love it, how can we share with our buyers?
Please do, Mary!
Andy, do you have an updated version of this to be used by Realtors? Thank you!
Thanks can’t wait to share!
Tip # 7: Know what your home will cost you on a monthly and yearly basis. A home is not a one time expense. It is important to know and plan for these anticipated and unanticipated ongoing expenses. Anticipated expenses include your mortgage payment, utilities, Taxes, Insurance, (If applicable HOA fees) and Services (such as lawn and landscape, pest control, and swimming pools). Homes age and things wear out so it is important to factor in putting aside reserves for repairs & replacements such as repainting, new roofing, appliances and systems.
Now that prices have adjusted, it is still a good idea to have purchase agreement contingent upon it appraising at the full purchase price. If it doesn’t for your buyers, most likely it won’t for the next buyer on the listed property and the sellers will usually renegotiate the price down to the lower appraised price. This would only apply if the appraisal is too low, if it is higher, great, and there is no need to let the seller know anything except that it is “ok”.
Very helpful tips! Getting a home inspection is a must along with scoping out the neighborhoods!
Great list! Found it on Pinterest and am sharing today.
You’ve got so many great home buying tips here. I like how you said that we need to get pre-approved before even house hunting. My wife and I really want to move into our first home, so I’ll go talk to a lender before we do anything else.
My husband and I want to buy our first house together early next year. I appreciate the advice for new homebuyers that you compiled here. The tip to get the house inspected even if it looks perfect is really smart, especially considering you say here that 91.4% of real estate agents agree.
It is a great tip get a home inspection to ensure that the house is safe to live in and in good condition, regardless of how nice it looks on the surface. My husband and I are in the market to buy our first home, so all this advice is really helpful. I think that if we hire a real estate agent, we will get lots more helpful tip like these.
Great post. I have read your blog. You have shared very useful ideas for Homebuyer Tips. I hope you will share more information. Keep it up!
Your Lisiting is very helpful! Thanks for sharing the information.