Being a homebuyer in today’s market can be challenging with the current competitive landscape. However, being armed as best as possible will give you a good fighting chance to be the winning bid on the home you wish to buy. Here are some helpful tips.

Trust Your Real Estate Agent

Your local real estate such as myself is going to be a wealth of information. From knowing the market to crafting the most appropriate offer the expertise is invaluable. Sometimes a little creativity can help with negotiations and extensive experience can be just what you need.

Move Quickly

The vast majority of homes for sale are selling in less than 1 month. With the steep competition today you will need to be ready to not only view all homes that come on the market but be prepared to submit an offer immediately should it be the right fit.

Know Your Budget

Before you even begin seriously looking at real estate, you must get pre-approved for a home loan by a mortgage professional. Only they can truly tell you what you will be approved for in the way of a home loan. This will dictate the price point of what you can afford and start looking for. Also, while some homes go into bidding wars, this will also help keep things in check for you as you know your price ceiling.

Put Your Best Foot First

According to a recent report from the National Association of Realtors, roughly 40% of today’s offers are submitted for above the asking price. Knowing this information is always helpful but local trends combined with comps and your agent’s knowledge will help guide you best when making your best offer.

Be Flexible

With the help of your agent you can decide on what makes most sense to be flexible on. It is not recommended that you give up too much like a home inspection contingency just to make your offer most attractive. There are other things like amount of money down, closing dates and the like that may be just as important or helpful to the seller if you can accommodate. 

Everybody knows buying a home is certainly a larger purchase. While it is a great investment in your future, home prices and everything that is involved financially can be a lot especially if you are doing it all on your own. A recent study from Freddie Mac said that nearly a third of all households are a sole-person which continues to grow. They say: 

“Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”

If you fall into this growing category of buyers, here is some helpful information to follow.

Know your credit score

When you are purchasing a home on your own, all of the finances and qualifications are all your responsibility. Other than having enough money and getting prequalified, you need to have solid credit. When you hire a mortgage broker, they will do a credit check as part of the process to get you prequalified. If your credit needs some repair, they can sometimes advise you on what you can do to make it better so that you will get a better loan rate.

Research down payment possibilities

Once you have gotten prequalified and know how much you can afford to pay for a home, then you need to plan for having enough money for a down payment. There are a lot of options out there today ranging from 20% down to putting very little down. There are also different loan types and term lengths to research so you can choose one that fits your budget and anticipated life plans. 

Plan for future you

Put aside some time to figure out what you really want and need in your home. Do you expect you will need a lot of space for a future partner and family? Or do you want to keep things more simplistic with a condo where maintenance is taken care of with a regular fee. Maybe you may even want to start in a condo now and rent it out later when you trade up to a single family home. Your lender can help you with identifying costs but your real estate professionals, such as myself, can also assist you with what you want in regards to what to expect. In the end definitely lean on some professional advice and information while you prepare yourself for one of life’s larger purchases. 

There comes a time when a homeowner will want to update their home in one way or another. Reasons can be to add value for a potential sale or even to just make things nicer to enjoy day to day. Smart technology is a newer way to enhance your home to make it more efficient, secure and even more eco-friendly. Here is a closer look at some ways your home can leverage technology. 

Heating and Cooling

We used to think that programming our thermostats was a great idea when they became popular years ago. Today, smart thermostats not only look cool, but they can be managed with voice control or even adjusted remotely via an app. Some can even heat or cool your home in anticipation of your arrival which all helps in controlling your energy usage and expense.

Lighting

Similar to HVAC, lighting can be activated by motion, voice or via an app. Energy efficient and automated LED lighting can be great for creating your desired ambiance as well as enhancing your home’s security.

Appliances

These days our appliances can also help make our lives easier. Wi-Fi refrigerators can alert you of low ice or if a door is left open. They can also help keep inventory of what needs replenishment. Some smart ovens and toasters can even be preheated via an app as you are on your way home!

Voice Control

No worries if you have your hands full or you aren’t near an actual control panel, voice activated elements add great convenience. Get instant access to news, weather and music with a simple voice command. You can tether lighting, appliances as well as HVAC control to these systems as well. 

Security

Digital security in particular has become very popular. These are great especially for those who aren’t home much or may be seasonal residents. Camera surveillance via doorbells or hidden cameras help monitor activity in or around your home. Doors can also be locked and unlocked remotely via apps as well for added security and convenience.

Irrigation

Smart sprinklers are a great way to easily irrigate while adding efficiency and lower costs. These can be controlled remotely via Wi-Fi and can also be scheduled and synchronized with weather apps so that you aren’t over watering when there is ample rain.

Entertainment

Perhaps for more convenience and luxury, having televisions, monitors, speakers and the like all working together and managed via an app or voice command is icing on the cake for the utmost in entertainment ease. 

Our own homes have increased in value recently both monetarily and figuratively. As more time is being spent at home from imposed pandemic changes and a larger number of people working from home design trends are becoming more personal. 

“It makes sense as people have gone from having to be home to wanting to be at home in an environment that expresses their personalities and individual tastes,” says Laurel Vernazza, home design expert at The Plan Collection. “Since no one could travel, homeowners had to bring those experiences into their homes.”

According to The Plan Collection’s team here are the predictions of home design for 2022. 

Hardwoods With Patterns

It may be a throwback to years ago when we used to see patterns in hardwood flooring we could see return. Plan to see patterns, different tones or even two-tone inlays for some creative interest. 

Kitchens With Color

We have already begun seeing this trend starting recently where kitchens are getting more daring with color. Nevermind the all white kitchen as homeowners are looking to “spice things up” by adding interest with color. Expect to see more painted cabinets of color coupled with countertops of different materials. It is a fast emerging trend to even mix countertop materials with sometimes featuring an alternate material on the island. 

Buildings With Curves

Curves add more interest and character to a building’s architectural aesthetics. We expect to see more barrel-vaulted ceilings, arched entryways and openings, curved walkways and even curvy furniture as accents. 

Black Accents

On the inside of homes expect to see black appliances, accents and even entryway doors. On the exterior expect to see more black window frames and doors. 

Maximalism

Expect to see an increased demand for high-quality and unique antique furniture as people make their decorating choices. “While people are traveling less, they have more expendable income so creative expressions of personality infuse interior design. Furnishings, rugs, art, and paint reflect past travel destinations or future dream locations that bring this idea home.” designers say. 

Once you have located that perfect home to submit an offer on and the seller accepts, now the closing process starts. The average closing takes about 45 days nowadays, sometimes faster if you are paying cash. For the majority of buyers who are financing, here is a helpful timeline so that you can cross check your to do list and begin planning. 

Contact a lawyer

Real estate deals involve legal contracts and the handling of escrow funds. You will need to hire an attorney to handle all of this for you. Local attorneys are always best as they are familiar with local properties and easily reachable. This is also the time that title review will begin.

Pay earnest monies

Your attorney will hold your deposit that you are putting down towards your down payment and place that in escrow. This money is either wired or given with a cashier’s check.

Complete loan application

You would have completed some basic information to get prequalified for a mortgage, but now is the time to officially complete the loan application and provide all supporting documentation such as pay stubs and tax returns. 

Review loan estimate

The lender will provide you with a good faith estimate of the loan and all of the terms. Be sure to double check all details such as your name, the rate and term so that it is what you want and is accurate. 

Order home inspection

A home inspection is always a good idea to do so that you know exactly what you are getting into. Any major red flags will be uncovered so that you can further negotiate if need be.

Order appraisal

Your lender will order the appraisal (at your cost) to be sure that the home is really worth what you are paying and they are lending for. The home must appraise for at least the sale price to receive your home loan.

Lock in loan rate

You can typically do this once the home is under contract but once your inspection and appraisal are finished then nothing else should change so locking in is usually a good idea.

Get homeowners insurance

Insurance is a must to close on the home when a lender is involved. Shop around and pay attention to coverage amounts when comparing. If you are in a flood zone you may be required to have separate insurance for that as well. 

Review closing documents

At a minimum of three days prior to closing the lender will provide you with the closing disclosure document. This will spell out all fees so review this and be sure everything is as you expected. Notify them immediately should anything look inaccurate. 

Arrange wire transfer or certified check

Personal checks are never accepted for the money due at closing. These days most attorneys will provide wiring instructions, or if not then require a cashier’s check. Be sure that you make arrangements for what is required a couple of days before the closing. 

Transfer utilities

Plan ahead and make sure that you contact utility companies well in advance that you are taking possession of the home on your closing date. You don’t want an interruption in any essential services.

Conduct walkthrough

Right before the closing and after the sellers have vacated is the right time to do your final walkthrough. Make sure everything is working properly, as it should be and that no damage was done by the sellers upon moving out.

Attend the closing

Finally, bring your favorite pen as you will be doing a lot of signing! Also have your ID, copy of insurance, closing disclosure and any other items requested so that you are well prepared. Once all has been signed and filed then grab your copy of the keys and enjoy your new home!

According to a recent report by credit bureau Experian, the average age of the first time homebuyer is 34 years old. Buying a home in your thirties tends to be easier as you have had more time to save for a down payment, establish good credit and have a better idea of your life’s path. Here are some helpful tips to consider if you are nearing a home purchase. 

Consider Timing

There are just a couple of primary concerns that one should ask themselves when they get close to being ready to purchase a home. For one, can the buyer commit to any location for the next five years. You may not want to buy if you are debating a relocation from a job or growing family soon. Next, you will want to forecast typical ownership costs of upkeep. See if you can comfortably afford what will be necessary to invest in the home regularly. 

Is This Your First Home?

If you already bought a starter home in your twenties then you may be in a good position to upgrade. Take a look at your mortgage balance and weigh that out to what you anticipate clearing if you were to sell. In today’s market you may have a good amount of equity to help put towards the next home.

Consider Home Needs

A lot of change can happen in one’s thirties. This is a time when careers change and families grow so ask yourself some of these questions. Will the home accommodate you if you work from home? Will it have enough space or be in a good school district if you plan on kids? Or ask yourself if it offers a good location to all of the conveniences in your regular lifestyle for the things you like to enjoy.

Go Big

“You’re in a growth stage in your 30s,” adds Haub. “In your 20s, you buy an affordable home just so you can get a stake on the market, keep control of your expenses, and build your savings. In your 30s, you need to buy what you need to raise a family.” says Danielle Hale, chief economist for Realtor.com.

If you can afford a slightly larger home then go for it so you can grow into it. However, if you are spending more than a third of your income on your home then it may be too much for you to afford comfortably.

 Financial Considerations

The first place you should start is to consult with a professional mortgage broker. Only a mortgage broker will be able to review your entire financial situation from income, debt and credit to alert you to just how much you can afford. While they will tell you “on paper” what you can secure for a home loan, you will then have to be realistic with yourself and see how comfortable you will be with taking on the home purchase as you factor in your lifestyle and personal spending habits.