Real Estate Tips: Buying Your First Home

There is nothing quite as exciting as buying your first home. It can be a little daunting, however, especially if you do not understand the basics of home buying. You want to make sure that you get the best bargain for your money and that your home is a good investment. Follow these real estate tips when you are buying your first home and you will not go wrong:

See A Lender

You will be a much more attractive buyer if you see a lender and get qualified for a loan before you go out house hunting. In addition to that, the lender will be able to tell you exactly how much you can spend on your new home. Do not be afraid to push the limit. Look for homes that are priced a few thousand dollars higher than the amount which the lender advises as most of the time, the sellers will come down in price.

Look For Location

You are better off to buy a house in a prime location, even if it is the size of shoebox, than a large house in a blighted location. The reason for this is that the homes in the good location will be going up in price while the homes in the blighted location will be diminishing in value. Look for the best home you can afford in the best location.

Offer Low

The real estate market today is in a slump. This is a good time for anyone who is buying a home because you can get a home for a much lower price. This is especially true if you are a first time home buyer with nothing to sell and who has already been approved for a mortgage. Offer a much lower price with no contingencies and tell them that you can close in 30 days. This is an incentive for the seller to accept your contract.

Use The Listing Agent

Do not make the mistake in believing that the listing agent is working for the seller and your agent is working for you. They are both working for the seller. This is how they get paid. It is in the best interest of any agent for you to spend as much as possible on the house.

If you use the listing agent, you can generally get a better deal. This is because the listing agent usually makes a deal with the seller that if he or she sells the house themselves, they can pay less commission. It never hurts to try this approach. Plus the listing agent will bend over backwards to help facilitate the sale as they are getting full commission.

Do not be afraid to look for a house and make a low offer. Do not allow an agent to bully you into offering full price. The market today favors the buyer and there has never been a better time for first time buyers to buy a home