If you’re considering buying a home, you’ve likely already gathered advice from family and friends who have gone through the process. While their insights can be helpful, it’s crucial to also consult with experts—your real estate agents and lenders—to make informed decisions. We’ve gathered top home-buying tips from four experienced agents on our Agent Advisory Board to guide you in finding a home that meets your needs and fits your budget.
Here are 20 expert tips to help you on your journey to homeownership, whether you’re navigating a buyer’s or seller’s market.
- Focus on Homes Within Your Financial Comfort Zone Shelly Salas, a broker with Your Home Sold Guaranteed Realty, advises buyers to get pre-qualified by a lender to understand their purchasing power. She emphasizes the importance of staying within a budget that allows you to maintain your lifestyle comfortably. “Just because you qualify for a $500,000 loan doesn’t mean you should stretch your finances to the limit,” she says.
- Explore Government Programs for Down Payment Assistance Government programs can help first-time buyers and others with down payments and low-interest loans. Even if one partner has owned a home before, programs may still be available if the other partner hasn’t.
- Take Over Low-Interest Mortgages from Sellers In some cases, buyers can assume low-interest Veterans Administration (VA) loans from sellers, even if they aren’t in the military. This can result in significant savings compared to current higher interest rates.
- Negotiate Seller Concessions Don’t hesitate to negotiate with sellers, especially in a buyer’s market. Salas notes that sellers may be willing to cover costs like solar panels, saving buyers thousands of dollars.
- Choose an Experienced Agent with Strong Reviews It’s vital to work with an agent who understands the local market and has a track record of success. Salas recommends vetting agents by reviewing their experience and client feedback.
- Secure Financing Early to Prepare for Interest Rate Changes Winston Murray, founder of Works Real Estate Company, advises buyers to speak with a lender early to understand their financial options and create a plan for different interest rate scenarios.
- Consider a Fixer-Upper for More Value Purchasing a fixer-upper can be a cost-effective way to get the location or layout you want. However, Murray cautions that buyers should be aware of the home’s current condition and have a clear vision for renovations.
- Explore New Construction Options New construction homes often come with builder incentives that can lower your monthly payments and closing costs. However, Murray advises buyers to research the builder’s reputation and warranty offerings.
- Know When to Compromise on Features It’s rare to find a home that checks every box on your list. Murray suggests prioritizing the most important features and being flexible with others, especially if you’re not finding what you want in your desired location.
- Consider “House Hacking” Buying a multi-family property and living in one unit while renting out the others can help offset mortgage costs, making it a smart investment for first-time buyers.
- Keep an Eye on Homes that Have Lingered on the Market Murray recommends looking at homes that have been on the market for a while, as they may offer good value due to overpricing or poor presentation.
- Be Aware of Hidden Costs Marcus Larrea, founder of Palm Paradise Realty, advises buyers to consider hidden costs such as insurance, condo fees, and special assessments, especially when moving to a new area.
- Bring a Contractor to the Home Inspection If you’re considering a home that needs work, Larrea suggests bringing a contractor to the inspection to estimate repair costs, helping you budget accordingly.
- Leverage Your Agent’s Connections for Discounts A good agent can connect you with tradespeople and suppliers who offer discounts on home repairs and improvements, potentially saving you money.
- Explore Different Loan Types Larrea emphasizes the importance of understanding all financing options, including conventional loans, FHA loans, and others, as market conditions can affect what’s available.
- Consider Buying Now and Refinancing Later Even if interest rates are high, Larrea advises buyers to find a home within their budget and refinance when rates drop, rather than waiting for perfect conditions.
- Prioritize Unchangeable Features Jason Farris, founder of FresYes Realty Group, advises focusing on features like lot size and location, which can’t be changed, rather than cosmetic details that can be updated later.
- Pay Attention to Lot Size With growing interest in Accessory Dwelling Units (ADUs), Farris notes that lot size is becoming increasingly important for buyers looking to add extra living space in the future.
- Cast a Wide Net in Your Search Farris recommends looking beyond the Multiple Listing Service (MLS) and exploring other sources like Zillow, as not all homes are listed on the MLS.
- Weigh the Costs of Waiting to Buy Farris advises buyers not to wait too long, as home prices may continue to rise faster than their savings. He suggests finding creative ways to enter the market sooner rather than later.
These expert tips offer valuable guidance as you navigate the home-buying process, helping you make informed decisions that align with your financial and personal goals.
