Advice for Buyers

1. Work with a real estate agent who both listens and understands your needs and desires in a home purchase. Home buying is not only a big financial commitment, but an emotional one, as well. It’s imperative that the agent you choose is both skilled and a good fit with your personality.
   
   
2. Remember, there’s no “right” time to buy or sell. If you find a home you are looking for now, don’t spend an inordinate amount of time trying to second-guess mortgage interest rates or the housing market. Changes don’t usually occur fast enough to make that much difference in the price and a good home won’t stay on the market long. Your main concern should always be affordability and how much the home meets your family’s needs.
   
   
3. Don’t ask for too many opinions. Though wise council is good to seek on such a big decision, too many ideas will make it much harder to ultimately make a decision. Remember what happened when you asked opinions on baby names? No one can agree.
   
   
4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go. Evaluate “needs” versus “wants.” Don’t settle on the “needs,” but be prepared to give up some of your “wants.”
   
   
5. Don’t try to be a killer negotiator. Negotiation is certainly a part of the real estate purchasing process, but trying to “win” by getting an extra-low price may lose you the home you love. This is especially true in a competitive market.
   
   
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself – room size, flooring, the kitchen – that you forget such issues as noise level, traffic, amenities, privacy, etc. These issues have a big impact on what it’s like to actually live in your new home.
   
   
7. Don’t wait until you’ve found a home and made an offer to get approved for a loan. Presenting an offer without Conditional Loan Approval (CLA) makes your offer less attractive to sellers.
   
   
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs (i.e. window coverings, landscaping, paint, etc.). Don’t leave yourself short and let your home deteriorate.
   
   
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also brings great benefits.
   
   
10. Choose a home first because you love it, and then think about appreciation. While U.S. home prices increased by an average 9.36 percent from the second quarter of 2003 to the second quarter of 2004*, a home’s most important role is as a comfortable, safe place to live.

*Office of Federal Housing Enterprise Oversight, 9/1/2004