Buying a home is arguably one of the most significant financial decisions that a person makes. As many found out over the last several years, success is not guaranteed and financial calamity can result. While not every variable can be addressed, many of the fundamental ones can and if properly done, trouble down the road may be avoidable. Owning real estate has inherent risks, it also has many rewards and those that take a methodical, systematic approach to home buying tend to be the most successful. This is a list of things that we believe every home buyer in Atlanta should have a firm grasp on. By that we mean have in hand, have answers to, have considered and be prepared to act upon. It's in no order and it's far from all inclusive. It's compiled after almost twenty five years of working in real estate; seeing how successful people operate and seeing things that common in failure. Of course there are cases where folks did everything "right" and still failed; the criminal activity of lenders and Wall Street that embodied the real estate collapse did not discriminate.
- Define success. If the home buyer doesn't know what they want, how can the agent? A buyer should be able to describe the broad characteristics of the
home, where it is, how much it costs and critical must haves/must not haves. The home buyer must be prepared to tell the agent what they want - in detail. - Be mortgage smart. Speak with more than one type of lender; bank, broker, credit union...each is likely to have slightly different options. Communication and accessibility are vital; the buyer, agent, closing attorney....will need be in constant contact throughout the process. We always suggest avoiding the "too big to fail" organizations - bloated fees and packages, poor to zero communication when needed, impersonal service, delayed closings and banker's hours tend to impede success. Learn what you can afford and be certain to buy with your head, not over it.
- Have contingency plans in place. Home buyers should be prepared should the search fail to produce tangible results. Discuss ahead of time modifying the characteristics, area, price as or if needed. Consider the current abode - if it's a rental when is the lease up, what does it cost to break the lease early if needed? If it's a home being sold, what happens if the existing home sells prior to finding another - or after - or long after?
- Properly select a real estate agent. Arguably the single most important part of the process, few home buyers know how to properly select a real estate agent. The performance bar for real estate agents is virtually non existent; failure to properly understand that has hurt many home buyers. Experience and production are critical; an agent should be earning a living and be able to easily answer these 7 questions.
- Set reasonable expectations. What "used to be" is immaterial, this market is extremely fluid and "the house" may pop up at any time - including right after the search begins. It may not take weeks but days, or it may not happen at all. It is highly unlikely that deep discounts will be found in this market. Short sales are no longer a bargain, most that don't end in flames and wasted time settle at retail. Foreclosure inventory is down and list prices are up - often above where they should be. Rates are increasing and will continue to do so.
Associate Broker & Certified Appraiser
Atlanta Communities Real Estate
678-428-8276 direct
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www.hmtatlanta.com
