There are several questions to ask before you begin your house hunting journey. Yes, a great real estate agent will take care of you throughout the entire process, but only after you tell your agent what you need and what you want.
To help you figure out exactly what you need and exactly what you want, here are some questions to ask yourself to make sure you have everything in order before you purchase your home.
Why would you like to purchase a new home?
For some, the answer to this question might be obvious. The reasons might stem from job transfers or work orders. Other times it might be because of family matters. Sometimes, it could be because the current house you are living in is too small, or it is time to downsize and the current house you are living in is too big. Or, you could be a first-time home buyer who is ready to finally own a home.
Where do I want to live?
The most important decision in real estate is location. The old adage of "location, location, location" is true for a reason. A 3 bedroom, 2 bathroom, 1,700 square foot home with an open floor plan will be priced very different pricing depending on where the home is located.
Pick the top 3 areas - and only the top 3 areas - of where you want to live. Make sure those neighborhoods are close. If you do not know where you want to live, you probably are not ready to buy a home. Thoroughly examine those neighborhoods and the homes in those neighborhoods before even considering a different area.
To help you figure out exactly what you need and exactly what you want, here are some questions to ask yourself to make sure you have everything in order before you purchase your home.
Why would you like to purchase a new home?
For some, the answer to this question might be obvious. The reasons might stem from job transfers or work orders. Other times it might be because of family matters. Sometimes, it could be because the current house you are living in is too small, or it is time to downsize and the current house you are living in is too big. Or, you could be a first-time home buyer who is ready to finally own a home.
Where do I want to live?
The most important decision in real estate is location. The old adage of "location, location, location" is true for a reason. A 3 bedroom, 2 bathroom, 1,700 square foot home with an open floor plan will be priced very different pricing depending on where the home is located.
Pick the top 3 areas - and only the top 3 areas - of where you want to live. Make sure those neighborhoods are close. If you do not know where you want to live, you probably are not ready to buy a home. Thoroughly examine those neighborhoods and the homes in those neighborhoods before even considering a different area.
What's important to you about these areas?
I will answer this question with a question: why is location so important? People want to be in a neighborhood that fits them, their needs and their wants. It could be because of the good schools in the district. Or, it could be that you want to be close to the nightlife in that area. It might even be because of the location on the water. Whatever your reasons, find a location you like and have a reason to want to be there.
How soon do you need to move in?
For some people with job transfers or work orders, the need to move is urgent and immediate. In this case, make sure you have answered all of these questions thoroughly before beginning your house hunting journey. If you do not need to move within the next three months, start creating a mental image of where you want to live so when the time comes to move, you will be ready.
You should actively begin your house hunting process at least 3 - 6 months before you plan on living in your new home.
For some people with job transfers or work orders, the need to move is urgent and immediate. In this case, make sure you have answered all of these questions thoroughly before beginning your house hunting journey. If you do not need to move within the next three months, start creating a mental image of where you want to live so when the time comes to move, you will be ready.
You should actively begin your house hunting process at least 3 - 6 months before you plan on living in your new home.
How big of a home do you need?
A basic question to be sure, but a necessary one nonetheless. A married couple with no kids would most likely not need a 5-bedroom home and could make a town house feel perfect. While a family with 6 kids would be most comfortable in a home with at least 3 bathrooms and plenty of square feet.
An important note with this question is to base your criteria on where you want to live. If you wish to live in a downtown setting, do not expect to purchase a single-family home. Condos, town houses, and multi-family homes are best suited for this area.
A basic question to be sure, but a necessary one nonetheless. A married couple with no kids would most likely not need a 5-bedroom home and could make a town house feel perfect. While a family with 6 kids would be most comfortable in a home with at least 3 bathrooms and plenty of square feet.
An important note with this question is to base your criteria on where you want to live. If you wish to live in a downtown setting, do not expect to purchase a single-family home. Condos, town houses, and multi-family homes are best suited for this area.
What other features are you looking for in a home?
Who else needs to see the home before making the final decision to buy the home?
Make sure that all interested and vested parties to the purchase of your new home have a chance to see the home in person and an opportunity to give their opinion of the home. If you are the manager of your grandparents' trust, make sure the grandparents see and approve of the property before purchasing the property. The more headaches you can eliminate earlier in the process, the better.
What is your ideal price range?Make sure that all interested and vested parties to the purchase of your new home have a chance to see the home in person and an opportunity to give their opinion of the home. If you are the manager of your grandparents' trust, make sure the grandparents see and approve of the property before purchasing the property. The more headaches you can eliminate earlier in the process, the better.
Notice that questions about price are the last questions I mentioned on this list. Why? Because everything is negotiable. The fantastic part of real estate is that no two properties are alike. Every property is unique simply by it's distinctive location. Creating an idea of where you would like to live and what you would like to have in your home first is easier than starting with a price tag and trying to match your criteria to a number.
How much would you like to put toward a down payment?
This question is important because the answer will impact not only how much money you need today, but how much money you will need to maintain your home in the future. If you plan on purchasing 100% of the home today with only cash, you will not need to spend money in the future on a mortgage payment. On the other hand, if you put a minimum of 3.5% towards a down payment, you will have to pay more money down the road.
Be sure to get recommendations from your real estate agent on which mortgage bankers and mortgage brokers to talk to regarding your finances. They will then examine your financial records and determine what is the best solution for you.
Be sure to get recommendations from your real estate agent on which mortgage bankers and mortgage brokers to talk to regarding your finances. They will then examine your financial records and determine what is the best solution for you.
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