February 26, 2020
Congratulations on deciding to buy your first home. Buying your home for the first time can be overwhelming and having the right real estate agent can make the process easier while the wrong one can make your home purchase a nightmare.
How to Choose a Real Estate Agent?
After making the decision to buy your first home, finding a good agent is the second big thing that you need to focus on. Let’s look at the home buying process to learn why the right real estate agent is so important.
Main Steps Involved in the Home Buying Process:
- Find a home
- Consider your financing options and secure financing
- Make an offer
- Obtain a home inspection
- Close or move on
- Take advantage of First-Time Home Buyer Programs
Your real estate agent will help you through all of these steps. Your chosen real estate agent should be experienced and have knowledge of the type of home and neighborhood you are looking to buy in.
We will share 4 tips commonly missed by first time home buyers. These are coming from our experience with helping our clients secure mortgage or financing their homes. If your agent isn’t sharing these tips, you need to find a new agent.
Four Tips for First Time Home Buyers (Is Your Agent Sharing These?):
Understand that Your First Home May Not be Your Forever Home
Some people think of their home as a permanent residence where they will live forever and grow old. This isn’t the case with most people.
After observing thousands of first time home purchase transactions, we have concluded that most first time home buyers don’t stay in their first home long term. Some sell it and upgrade to a bigger or better home, while others keep the home as an investment property that generates passive income and buy another home.
That Thing about “Location, Location, Location” is True
This is the most popular slogan in real estate, and for a good reason.
From an investment standpoint, buying a home in a good location will ensure your home will sell easily when you decide to move to a new home.
Even if you aren’t considering selling in the near future, the location of your new home is important. Whether you’re moving somewhere unfamiliar — or even a different part of your city, relocating requires research.
You need to make sure the neighbourhood is a good match based on your preferences. Visit that area to see how you feel walking around it. You can grab coffee or lunch in the area at a local cafe or restaurant, and talk to local residents and ask about the neighbourhood.
Here’s some of the questions you’ll want to ask yourself:
- How safe is this neighbourhood?
- Can I find the type of home I want here?
- How long will it take me to get to work?
- How close is the home to public transit (if you use transit)?
- What does the neighbourhood have in the way of schools and daycare (if you have kids or are planning to have a child)?
- Are there grocery stores, a hospital and retail shops close by?
- Is it a pedestrian-friendly neighbourhood?
Make a list of everything that’s important for you in a neighbourhood you would like to live in and discuss it with your real estate agent.
Moving Again May Happen Sooner (Rather than Later)
A home is a place where people like to settle and never like to think about moving again because, honestly, moving is a big hassle. Packing the bags, loading and unloading the truck, unpacking and setting everything up, isn’t an easy task.
We may sound emotionless when we tell you “don’t marry your house, it’s only walls and a roof, and maybe a swimming pool.”
But according to real estate statistics, movement is common among new homeowners. Enjoy your new home as long as you like to live there, but don’t be afraid of moving.
Why are you buying your first home?
Before becoming a new Homeowner, you have to know of some of the common mistakes to avoid when buying your first home. It may sound silly, but it’s important to consider why you are buying your first home.
You may be buying because you’re getting married or moving in with your partner, maybe you’ve recently got a new job or promotion, or simply as an investment property?
Knowing your reason is the first part of research in buying your new home. Everything from the type of neighbourhood, type of home you should buy, amount of money required to buy it, to the type of real estate agent needed, starts with answering that first question – why you’re buying.
And this is what your real estate agent should ask you on your first call! Literally, we are not kidding.
A single-family home could be ideal if you want a big yard or a lot of room. But a condo or townhouse would be a better choice if you’re willing to sacrifice space for less maintenance and extra amenities, and you don’t mind paying a homeowners association fee.
An apartment would be ideal if you’re single and aren’t getting married in the near future.
If you want to live in the home for a short period and flip it for profit, you may want to consider a different type of home.
Make sure your Real Estate agent does a better job of guiding you to the ideal property than Google Search. A Real Estate agent should be like your property mentor – not a salesman.
Education is the real “protection” against market risks when making any investment whatsoever. This is why Your Mortgage Guide has created a self paced free course that will teach you all the basics you need to know to invest in the right first home. Click here to enroll in it!