- Consult 3 full time Realtors – part time Realtors are like part time doctors. To determine if a Realtor is full time, ask them for their resume. If they don’t have a resume, that’s a red flag. If they do, look for what their “sales volume” was over the preceding 12 months. If the average single family home in your area is $250,000, and the Realtors Sales Volume was 2 million, although that sounds like a lot, that would only be 8 homes in a year…less than one a month. You want to see AT LEAST one home sale per month. Avoid “Uncle Bill” who got his license back in 1983 but hasn’t done a transaction since.
- Consult 3 friends who have recently bought homes – sometimes learning mistakes from others is the best way to learn! Ask your friends or family members what went great in the process, what went just ok (but could have been improved) and what went really wrong (and could have been avoided).
- Scout the areas you like – after determining your price range, determining WHERE you want to live is the next step…too many people get too focused on WHAT they want (ie. hardwood floors, stainless steel appliances, granite countertops, etc). Don’t forget, when you buy a home, you’re also buying a lifestyle…and that lifestyle is dictated not by WHAT you live in but WHERE you live in it. The best way to scout is either on foot or by bike. Driving is too difficult to really absorb the area…and maybe grab a cocktail at the closest pub.
- Consult 3 Lenders – one big mistake buyers make in today’s market is focusing too much on the interest rate. While it is critical, it is not everything. You want a “personal mortgage consultant”. Interview 3 lenders and ask them not just what their current rates are, but also what their process is like, how much communication you can expect from them, if they offer any special programs, and what makes them different from all the other lenders you could choose from. DO NOT choose a lender strictly based on the interest rate…you’ll most likely set yourself for heartache when they terminate the loan 3 days prior to your closing…yes, it happens…more often than you think.
- Get focused – spend some time really thinking about what you want and WHY. Jot down what are your “absolute must haves” (ie. you will not buy a home no matter how great it is unless it has these attributes) and what are your “wants” (ie. you’ll buy a home if it is a great fit even if it does NOT have these. Ask yourself how you will use your home. Do you love to entertain? Inside or outside? What is the most important room in the house to you? Why? Where do you spend the most amount of time living? Answering these ahead of time will help you stay clear amidst a seemingly endless supply of home choices.