Fsbo

Buying a house is a complicated and frightening process, and it is important to be prepared. Knowledge is power when it comes to negotiating the difficult world of home prices, interest rates and mortgage loans. For a first time home buyer, there are many factors to consider before you buy. The more information you can gather before you start shopping, the better off you will be.

1: Ask yourself if you’re ready.
You need to decide whether you’re financially ready to buy a home, says Connie Barbosa, vice president and branch manager of Slade’s Ferry Bank in Somerset, Mass. She suggests first-time buyers ask themselves some simple questions:
Do you have a steady job and income?
Do you plan on remaining in the same area for a few years?
Do you have enough money set aside for your down payment and closing costs?
Do you have an emergency fund?
Do you live within your means, avoiding credit card debt?

2: Find out what you can afford.
When you’re sure you have the right mind set to be a homeowner, it’s time to determine how much house you can afford. Web sites such as Fizber.com, Zillow.com and Homegain.com can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.

3: Find out what’s available.
Now it’s time to decide where you want to live and research what types of housing are available — one-story single family, condos, town homes, etc. You can get an idea by looking at ads and driving around the community before you ever call a real estate agent. In searching for an agent, find one who makes you feel comfortable and, more importantly, one who listens to you.

4: Choose a neighborhood.
Once you know the housing stock, you can look at specific neighborhoods. Cruise by at night time to see whether you get a “vibe” that it’s a safe neighborhood. If you have children, you’ll want to check out the quality of the schools. You may want to check out what types of large-scale facilities (airports, highways, chemical plants, etc.) are nearby, and whether you’re convenient to shopping, work and schools. You can do much of this independently, but you can also ask your agent to help you find sources of information about such things. Moreover, you can do it yourself using a broad-purposed neighborhood estimating tool Fizber Drive Score.

5: Negotiate.
Once you’ve found the house you want, you should make an offer that’s lower than the seller’s asking price. The seller expects this and will likely make a counter-offer. You have to decide before you start negotiating what your make or break point is, and stick to it. Just be reasonable. Don’t expect the seller to give you a 50 percent discount on a good property.

WARNING! The “Red Shoes” Experience
Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

This entry was posted on Thursday, December 4th, 2008 at 9:58 am and is filed under FSBO. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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