March 4, 2021
3 MINUTE READ
Love. Tempered optimism. Anxiousness. Desperation.
No, we’re not talking about the latest dating app, we’re talking about all of the emotions (and more) that come along with buying a home. Like most other milestones in life, many people report not fully understanding it until they had actually gone through it themselves… but we’re here to help.
To help fill you in on some of the challenges of buying a home, we talked with some people who have already gone through the process and asked them to share the things they wish they would have known sooner to help save them time, effort and money.
For this reason, we can’t stress enough how important your home inspection is. No matter how nice the home may look, a thorough home inspection is truly the only way to make sure you don’t wind up with a lemon. A home inspection gives you a good idea of what you’re working with, and then you can decide whether you want to move forward with the sale or not.
Keep in mind that you don’t necessarily have to ask the seller to make repairs, but use the information you find out through the inspection to decide whether to proceed with the sale. You could also potentially use this information to negotiate a better price.
Once you’ve found the perfect home and your offer has been accepted, the work doesn’t stop there. The closing process can be lengthy, and it comes with a substantial to-do list. Buying a home requires you to stay on top of your actionable items, especially during the escrow process where there are likely penalties for missing deadlines.
You can, and should, shop around for lenders. Even if you have a bank that you work with for nearly all aspects of your finances, it never hurts to meet with other lenders. Lenders will compete to get your business, so if you have loan numbers in hand from different financial institutions, it will usually allow you to negotiate lower (better) rates that will save you a significant amount over the life of your mortgage.
(You don’t have to use Real Loans for your home loan when you buy with us, but we’re pretty sure you’ll want to… We’ve created a super fast and convenient home loan process, entirely online. And of course, no fees!)
This one is important to know ahead of time. The price that is agreed to during the sale can actually be a sizeable amount less than what you end up paying. In fact, closing costs can be as much as 5 percent of the sale price — which can add up quickly.
More often, closing costs are closer to 2 percent, although this can still be a substantial amount, given the purchase price of the home. For instance, paying 2 percent closing costs on a $750,000 home will result in an extra $15,000 added on to the sale price (if you had to pay 5 percent closing costs, this number jumps to $37,500).
Here’s hoping that this 20/20 hindsight will help you land the home of your dreams in 2020. And whether you’re just getting started or you’ve been through the home buying ringer, Reali’s got your back.
Reali agents are experienced local agents who work with your best interest in mind at every step of the transaction. All of our agents are experts in the areas they serve — and can help with your real estate search. They’ll support you through the entire process, from search to negotiations, throughout the paperwork process and close. Have questions? Talk to a Reali agent today.