Where to Start your Home Search?

Well, this is my first “long distance post”. I’m actually posting this from my blackberry. Technology sure is amazing. It has come a long long way since real estate agents carried around thick “listing books” that were updated quarterly! There are about 25,000 listings right now in our Northwest Arkansas MLS directory! That is a ton of properties on the market & would make a very heavy book.

This brings me to the point of this post: If you are currently looking for a home or if you will be starting soon, I’ d’ like to give you a few suggestions that will help you find your “Ideal Home.”

1. Visit a reputable lender. It is a good idea to use a bank when possible. If something happens at the last minute before closing and the investor in your loan backs out, the bank usually has the ability to cover the loan and pick up the investor later on their books. Most mortgage brokers don’t usually have that kind of capital available, but they may offer more flexible programs if you have bad credit or no down payment. Don’t foget to pick up a copy of a Good Faith Estimate (an estimation of closing costs & loan costs & your monthly numbers) & also a “Pre-Approval Letter” or “Pre-Qualification Letter”. Sending this letter along with a good offer will strengthen your buying position. Please get a letter that does not have an exact number that you qualify for. If you are putting a low offer on a property & your letter shows that you qualify for twice that amount, this will NOT help your negotiating position!
2. Now that you know the investment range that you could qualify for and the monthly payment that fits your budget, do a little market research on what that amount of money can get in the area that you are wanting to live. I will be glad to help with this step no matter where in the WOLRD that you are looking!
3. Needs or Wants? You know how much you are qualified for, you know how that would fit into your monthly budget, you know what that money can get you in the market, NOW it is time to figure out your needs and wants so you can begin to specify your search criteria. Think about the basics. How many bed rooms? Bathrooms? Good idea of square footage or space needed? How about other rooms? Do you need any office? Game room? Media room? Library? Sitting room? Family room? Gym? Dining room? Formal Dining room? What about the kitchen? Need a breakfast nook? Bar with stools? New appliances? Lots of cabinet space? Pantry? What about the Laundry room? Do you need any entire room or would a small closet work? Need storage space there? What ab out the exterior? Do you need all brick or stone? Will siding work? Porch? Deck? Backyard? Grass? Landscaping? Garage? Attic? Work shop? What about heating and air? Gas? Electric? Propane? City water? Well water? Fake or real Fireplace? Close to school? Shopping? Parks? Work? In country? Pasture? Woods? I think you get the idea. Just make the list as detailed as you can. Then fold a piece of paper in half. On one side you have the Wants and on the other you have the Needs. Begin to divide your list into these two columns. One question to ask is: “If the house had everything else I needed, could I do without this?”

Once you have all of this in order, it is time to “seriously” start searching for your home. Notice that I never mentioned the “perfect home”. Unless you build it (even then it is rare), the “perfect home” is not out there! Sorry to burst your bubble, but finding a home is a compromise between your needs and wants. Try to see past things that you can & are willing to change such as flooring, paint, fixtures, etc… If you find the perfect floor plan, in the perfect area, you might want to spend the money to get rid of the shag green carpet. Most sellers are aware that not everyone wants their wood paneling & bright pink bedrooms and many of them are willing to give a “flooring allowance” or “painting allowance” etc… That is one thing we can ask for in the offer.

If you have any questions or suggestions, email me! RayEllen@gmail.com I’d love to hear your thoughts on this post.