If you are new to buying real estate, you found a good article that will help you understand the buying process.  Everything has a process.  To win, learning the process is key!  You don’t need to worry, because it’s not too complicated, and if you are working with a skilled agent, you will learn a lot quickly!  The first thing to consider is being in the position to make a formal offer.  This means that your realtor has to show the seller that you are serious enough to go into contract with money, and that you are Ready, Willing, and Able to see your offer through to closing.  Putting an offer into contract requires RWA Status.

What is RWA Status?

What is RWA Status? It is being ready to pull the trigger, Willing to put in an offer on something you like, and able to see it through to the closing. It is important that you know this, because without RWA status, no seller will take your offer seriously.  There are 2 ways to be RWA. The first, is a letter of pre-approval from a lender. The other is a proof of funds from your bank, if you are buying with cash. If you need financing, we can help with that too.

Know What You Are Looking For

Home buying seems overwhelming at times.  To a beginner, it may feel like too much to process all at once.  To a professional, it is as easy as eating cake. Working with the right professional will make a difference.  That’s why we take to building the relationship first.  Once we know what you are looking for, we can bring you closer to it!

When looking for a home, consider the age.  Any updates made during those years can brig those areas back to new when the improvements were made.  Knowing when updates were made is good information to have.  There are issues that can come up on a home inspection that are minor, and that’s not uncommon.  Major issues can become deal breakers.  Things like, but not limited to:

  • Foundation/ structural issues
  • Roof with an active leak
  • Outdated electrical (aluminum wiring)
  • Polybutylene plumbing
  • Mold found in the attic

Things like these can be negotiated, if you really like the home.  But some of these issues are just not worth future headaches.  We Are here to help you!

Inspection(s) Period

Within the contract terms, it is a good idea to give yourself enough time to schedule a home inspection.  If you are purchasing a home that is on a private well and/ or a septic system, you will want to have those looked at too.  These are expenses that will give you additional peace of mind, in addition to a basic home inspection. If you see too many expensive repairs coming, you can back out during this period, or you can try to negotiate a middle somewhere.  A motivated seller will make every effort to keep moving. But if you were selected out of other offers, the seller can back out and go with another offer.  Every situation has a winning strategy.  A good agent will give you the knowledge and experience that you will need to make an informed decision.

Are inspections necessary?

If you are financing, your lender will require insurance to cover their investment. Most insurance companies also want to know what amount of risk they are taking.  Even if you are buying with your own cash, it’s always good practice to have a home inspection done. If you plan to I nsure your purchase, insurance companies require at least a four-point inspection.  But in all cases, it’s a good investment to know what you’re buying. A small money investment can save you from making a very expensive mistake.  

What happens after the inspection period?

Stay in contact with your lender and your agent.  Don’t make any large purchases.  Buying a newer car during this time will not help you at closing.  Anything that changes where you were at the time of pre-approval and when it comes time for the “clear to close” can make the deal fall apart at closing.  This is why it is a good idea to communicate with your buy team!

Real Estate is a Tangible Investment

Here is something you should know about buying your first home.  This is the single most valuable purchase people make in their lifetimes.  Some people see the potential and invest in buying multiple properties.  For a very long time we have been told to “never put all of the eggs in one basket.”  But, as investment value, it is tangible. You can enjoy it as it grows in value.  The housing market works like anything else. The law of supply and demand have a lot to do with prices.  Land value over time has mainly been headed upwards. Buying a home to live in is also making an investment towards your future and the future of your family.