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Ask the Agent

My boyfriend and I are thinking about buying our first home. What are the most important things we should consider? The whole process seems so overwhelming!

 

It can be overwhelming – but only if you don't prepare. Your question is a good one, and I think my best answer may be in the form of a list.

 

1.   Find yourself a good real estate agent. The good news is that it's FREE!  Sellers pay the commissions for both agents, so as a buyer you have an advocate for no charge at all – kind of a no-brainer when you consider all of the things your agent will do too.  When you work with a buyer's agent, he or she will set up all of your appointments, help you get to know the areas that interest you, write the contract, negotiate with the seller, and guide you through the process, to help you make sure you don't forget some of these key items listed below.  Ask your friends and family members if they have a REALTOR they trust, and then talk to a few of them. Pick the one who pays attention to you, treats you with respect, and has enough time to dedicate to your home search.

 

2.   Talk to a mortgage lender. Before you start looking at homes (even on the internet!) it's a really good idea to know your price range. In fact, most REALTORS require that you are pre-approved before you begin the process. You can get approved over the phone, and that way you'll know exactly what your monthly payments, closing costs, etc. will look like.  There's nothing worse than thinking you can afford one home, and then realizing you were off by $100,000. Save yourself the trouble and get that out of the way early.

 

3.   Decide which area(s) you like (that you can actually afford).   Now, this may be easier said than done! Take time with your boyfriend to discuss the kinds of things you would like to see in a neighborhood and in a home, and start exploring!  Talk to your agent about it a lot, because she may know of some areas with which you are not familiar that may be a good fit.

 

4.  Do your research on the area. Once you have chosen an area or two that fits your needs, start doing some research.  What have home values done in this area compared to the rest of the market? What is the crime like?  How much are the taxes?  What's the commute like during rush hour? (and drive it!)  If you are concerned about schools, what are they like? Years ago, this kind of research was hard to do, but thanks to the internet, the answers to many of these questions are just clicks away.

 

5.  Pay a fair price. This is a place where your REALTOR is going to come in handy. Once you find the home of your dreams, ask your agent to give you a list of comparable properties. You want to look at homes that are currently on the market, those that are under contract, and those that have sold recently.  Just because a seller prices their house at $300,000 doesn't mean it's worth it. Maybe it's worth $250,000 and they bought a fancy car they need to pay off. Information is power – and it will prevent you from offering to much (or too little) on your chosen house.

 

6.   Get a home inspection. A good home inspector will not only point out defects or concerns to the structure, plumbing, electrical, heating and cooling systems, appliances, etc., but he or she will teach you about the home you are about to buy.  Things like where the water turn-off valve is, where the breaker box is, how it's going to be important to keep the leaves off the roof where water could collect in that corner – countless tidbits that will help you be conscientious homeowners. If the inspector finds true defects, you have the right to address these concerns with the seller and ask them to make repairs. As long as your contract was written carefully, if both parties cannot come to terms on a resolution of these repairs, you have the right to walk away from the deal and move on to another house.

 

We are fortunate in Richmond to be in a relatively strong market; however, in most parts of town it is still a buyer's market. There is a lot of inventory from which to choose, there are motivated sellers who need to move, and there is great financing available to first-time buyers.  So get out there and get started! I assure you that proper planning will make the process fun and exciting but not overwhelming.

 

Jennie Barrett Shaw is a Realtor with Keller Williams Realty and a Richmond-area resident since 1987. She helps buyers and sellers maximize their investments in real estate by serving as a knowledgeable and ethical advisor. She currently lives in Westover Hills with her husband Travis, and their two yellow labs. Questions for Ask the Agent can be submitted to asktheagent@richmond.com .

 

Previous Ask the Agent columns

w May 1 :  Assessment? Appraisal?

w April 17 : How to choose an agent

w April 3 : Improving chances of selling

w March 6 : Refinancing

w Feb. 7 : Assessments