When considering how to buy a house there are factors you should think about so I have come up with 6 of the top tips for how to buy a house. In today’s real estate market it is clear that it is a Buyer’s market. With that said, you better not expect to go out and buy a home for $100,000 under asking price or be frightened that someone else is also interested in the home you like. You need to be prepared and understand your market so you can learn how to buy a house. Here is what you should think about in order to get prepared.

1. To start off if you have owned real estate previously you should understand that the price you paid for your home has not much to do with what you will get for your next home. Try not to get lured into some expectation that what you got your home will act as a ratio for what your next house will cost or to current home value. More importantly you should get a clear understanding of your homes value and use that to help figure what price range you can afford and where you should start your home search.

2. Now that you have that figured out you should also think about how you will sell your house if you have property to get sold. There have been real estate markets in the past, when inventories were lower, that could be manipulated well by the For Sale By Owner (FSBO) but in this current real estate market you need to hire an agent, preferably a Realtor to help get your home sold quickly. With all the homes available you want to have an expert help you figure out the exact selling price for your home as well as have an understanding off the small nuisances of selling that can save you a ton of time and make your home be the first one to go on your block.

3. Furthermore you need to be sure you are up to date on home market values. With all the changes happening in real estate it is important to know that what a home sold for 6 months ago is no longer what a home will sell for today or tomorrow. That holds even more true considering the past quarter with the tax credit expiration; if you were to use sold comps and days on market values from April you would see homes selling for much more and faster then the current conditions. With that said if you look at home prices from last month along with the showing activity you would see that things are selling quicker today with more activity. In summary, things change quickly so try not to get too hung up with what your neighbor purchased their home for 6 months ago just focus on the deals you are finding today.

4. Be aware of home interest rates. Rates are notalways stable and it can have a big change in your purchasing power. For example you would have about the same payment if you bought a $250,000 house at a rate of 4.5% as you would on a $225,000 at a rate of 5%. So you could potentially lose $25,000 in buying power if rates just went up a little. Be sure to understand where current rates sit and what direction they may be moving with the market.

5. When getting information about rates you should think about who you get your mortgage through. While there are any number of people out there right now trying to help find loans for buyers, when you are making an important financial decision such as buying your home you will need to make sure that you are working with someone you can trust. A trusted mortgage professional can make the difference off you getting your home or not. Surely you have heard of people not getting their home because the loan did not come through. That is the biggest reason you need to work with someone you can trust to get the deal done. One thing we like to do is give you a good faith estimate that we know is competitive and then let you try to find a trustworthy source to beat our rate. If you can do that, you will be confident you have a great deal.

6. Lastly, recognize that despite the awful numbers and predictions, there really never has been a better time to buy a home; provided that you are qualified. If you are in it with a established commitment in mind and you are financially ready, there are some great steals out there. Over the course of time you will likely find that you will be satisfied you made the decision to purchase.

I hope these tips have helped you gain a good understanding of how to buy a house. Please contact us or feel free to comment if you have suggestions or stories to tell from your experience.