1. Know how much of a mortgage you can afford.

It is important for a Buyer to know what they can spend on a home before they begin to search. Getting pre-qualified for financing will help identify an affordable price range so the Buyer looks in their price range instead of becoming emotionally invested in a house they cannot afford. Getting pre-qualified also provides an opportunity to lock into a rate, which could go up before closing on a property, costing thousands of dollars. Often, a pre-qualification letter is submitted with an offer or purchase and sales agreement as proof that a buyer can afford the property. In addition, a buyer must find a lender within a few days of signing a purchase and sales agreement, and getting pre-qualified would put the buyer in contact with a mortgage broker. Buyers should consider the costs of property taxes and home-improvements or repairs as well as other expenses when determining an appropriate mortgage.

2. Secure the services of a skilled, competent Real Estate Agent.

A Buyer's agent will represent their client and protect the Buyer's best interests. When a Buyer is working with their own Real Estate Agent, the agent can access information about similar listings and recently sold properties that the Buyer can consider before making an offer. Before choosing an agent, Buyers should be aware that a Real Estate Agent is not a REALTOR. A REALTOR is a Real Estate Agent who works in accordance with a Code of Ethics that exceeds the standards of the law to maintain highly professional standards of honesty and integrity. Typically, the Seller pays the Real Estate Agent's fees, so the Buyer may obtain the services of a Real Estate Agent at no cost!

3. Research the market.

Prior to making an offer, a Buyer's Agent should conduct a comparative market analysis for their client to determine the value of a property. Even in today's market, a foreclosure or short sale may be overpriced if the Seller paid too much for the house. Researching the market will provide the Buyer with information that will allow them to make a fair and reasonable offer while protecting their financial interest.

4. Understand your rights and responsibilities.

Buyers should carefully read any papers they sign and understand the language in these contracts. The purchase of property entails the use of many legal documents. A Buyer's Agent should describe the purpose of each document, make clear the Buyer's obligations, and explain the Buyer's rights. An educated Buyer will be better able to collaborate with the parties involved to protect their best interests and be successful in choosing the right home.

5. Inspections and Contingencies

Buying a home is typically the most substantial and important investment ever made. Buyers should plan to conduct a thorough inspection of the property to identify any problems that may exist. The Buyer can then address these issues, if any, with the Seller's Agent so that all parties can come to an agreeable resolution. If the purchase is contingent upon an inspection, major problems revealed may be a cause to void the contract. Also, by making the sale contingent upon financing, the Buyer protects their financial interests. The sudden, unexpected loss of employment that prohibits the Buyer from securing a mortgage or an appraisal that shows that the property is valued below the mortgage can void the contract and entitles the Buyer to their deposit.

Back to top ^