The Home Buying Process - Where Do I Begin? (helpful guide to take the worry out of buying a home)

Q. I’m thinking about buying a home. Where do I begin?

1) Get familiar with the area. Whether you’re relocating to a new location or want to buy a home in your current locale, the first step is to familiarize yourself with the general area and specific neighborhoods.

A. If you’re currently living in another region, one good way to get to know the new area is to search the area on the Internet. Go to the Chamber of Commerce website as well as other “city” websites. You may also want to request relocation information. (There are links to various area information and also a relocation packet available on my website: www.GretchensHouses.com) You may want to plan a visit to check out the area even further.

B. If you’re currently living in the area, you’ll want to take some time to explore some of the neighborhoods in the area. Are there any that you find particularly appealing? Any homes that you’ve found to be particularly to your liking? Make note of these.

2) Get familiar with home prices in the area. Do some preliminary homework by checking out home prices in the area. You can do this via Internet. Realtor.com and various agents’ websites often provide the ability to search the local MLS data. (To search for homes in the Prescott/tri-city area, go to www.MLSPrescott.com) You might also pick up a weekend edition of the local newspaper or a current issue of one of the local real estate guides. Pick out a few homes you’d like to buy. What appears to be the general price range for that type of home?

3) Talk to a local REALTOR®. You may want to interview more than one Realtor. Here are some things to look for to make sure you’re getting the best agent to represent you.

A. Ask if the agent will be representing you exclusively. Many people drive around a neighborhood, find a home that looks like a possibility and call the name on the sign. This is probably not in your best interest because that agent is representing the Seller. You want an agent that will represent you and act in your best interest. In Arizona, there is an Agency Disclosure form whereby you may choose to have an agent represent you exclusively. That agent is thereby duty bound to represent you to the best of his or her ability. (Keep in mind, however, that in some states the agent always represents the Seller.)

B. You may want to consider an agent with a designation such as ABR (Accredited Buyer Representative), CRS (Certified Residential Specialist), or GRI (Graduate, Realtor Institute). These agents have received additional instruction and training. For example, a GRI designee has completed a 90-hour educational program that provides in-depth instruction in vital real estate subjects such as contract law, professional standards and financing.

C. Ask questions. Don’t hesitate to ask pertinent questions about the local real estate market. Questions such as: What has been the trend in prices in the past 3-6 months? How long are homes staying on the market? Are homes generally selling for less than asking price? What do you think the housing market will be like 6 months from now? Look for an agent who gives you honest, satisfactory answers to your questions versus “the blank stare”.

D. Look at a few homes with the agent. Does the agent ask questions to get your feedback and understand your housing needs? Does he/she really listen to you? Do you feel like you and the agent are “on the same wavelength”?

E. If you’re not comfortable with that agent after your initial meeting, feel free to interview another agent. However, once you’ve chosen an agent that you’re comfortable with and one whom you feel will work hard for you, please be loyal to that agent. He or she is going to put in a lot of time and effort (both behind the scenes as well as showing you various properties). Help your agent do a good job for you by providing feedback and listening to the agent’s recommendations.

4) Talk with a Lender. Once you’ve gotten an idea of the price range of home you’re interested in, it’s time to talk to a lender to get pre-qualified. Perhaps you have a lender you’ve used in the past. If not, you may want to get recommendations from friends or your real estate agent. Answer the lender’s questions as honestly as possible. It’s always better to know whether you qualify for the home of your dreams before you’ve signed the contract. When interviewing lenders, inquire about their rates and also their fees. Always ask a lender for a “Good Faith Estimate”. This form will reveal how much the lender is charging for the loan.

You’re now ready to buy a home with confidence!