John Karadsheh
Now that interest rates have stabilized a bit and the spring weather has arrived, buyers are returning to the market. Here are a few things you should know if you are getting ready to buy in 2024:
1. DON’T START BY CLICKING THE BUTTON REQUEST A TOUR OR CONTACT AGENT
So many buyers start their search by finding a house they like online and then clicking the button to see the home. What they don’t realize is that by clicking the button they are starting a relationship with an agent who bought an internet lead and has probably never even seen the home… and they are not contacting the agent who represents the property.
What most buyers don’t realize is that when the internet agent takes them through a home, that agent then has procuring cause. That means if you like the home, but not that internet agent, and want to use your own qualified representation, that internet agent could have a claim to the commission.
Many internet agents will also have you sign a buyer broker agreement, which obligates you to pay a commission to that agent even if they don’t end up representing you.
Instead, start your search by selecting a buyer representative who is experienced, vested in earning your business, knows the area you are searching, and will advocate for you through your home buying experience. An experienced advocate will help you save time and money!
2. DON’T SCROLL BEFORE YOU KNOW YOUR NUMBERS
If you are thinking of buying a home then you are likely scrolling the internet for homes and the sites are in turn regularly feeding you properties to keep you scrolling.
While many online real estate and mortgage sites may give you insight as to what your payment might be, rough mortgage calculations do not account for taxes, insurance, and HOA fees – which can add hundreds of dollars to a mortgage payment.
Furthermore, quoted interest rates are usually based on a best-case scenario and can swing significantly depending on your down payment percentage, credit score, type of income, loan product, and overall financial picture. Before you spend hours scrolling, spend 30 minutes getting properly prequalified with a reputable lender or two. Your Realtor can help you find mortgage brokers to interview and each lender will likely provide you with different financing options based on the products they offer. You may find that you qualify for more or less than you expected – which will impact the price range you are searching. Once you know how much house you can buy and are comfortable with a payment amount then start your search with appropriate expectations so you can more quickly find your dream home!
3. DON’T FORGET TO STUDY THE ENTIRE PICTURE
We all scroll the internet for everything, and consequently, our eyes are attuned to the shiniest prettiest objects. This is especially true when looking at homes online.
We watch buyers become captivated by a white kitchen and lose sight of the neighborhood, mechanical condition, and property defects (home flippers rely on this!). When selecting a home, it is important to consider location, condition, age, deferred maintenance costs, cost of upkeep, structural obsolescence, landscaping, cosmetics, and more. Forward expenses need to be calculated into your overall housing budget, too. It is also important to understand how the house will grow with you and your family, how the house and neighborhood will age, and whether the community rules (or lack thereof ) will impact your enjoyment of the property.
An experienced Realtor will know how to help you measure each of these metrics so you not only find a house you like but also end up with a house that you will continue to love in the future.
We have spent decades working with buyers and have extensive experience advocating for first time home buyers, repeat buyers, second home buyers, relocating buyers, international buyers, luxury buyers, retirement buyers, and investors. We would be happy to share references from our amazing clients who know the value we bring to each transaction.
If you are looking to buy in 2024, we would love to help you get started on a path to finding your dream home! We are always here to help, so call us today for a complimentary buyer consultation at (480) 568-8680.
John is the Designated Broker of KOR Properties and has been a Multi-Million Dollar producing agent for over 21 years. He is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), and serves on the Arizona Regional MLS (ARMLS) Rules & Policies Committee, ARMLS Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.
Natascha is a Multi-Million Dollar Producer and Accredited Buyers Representative (ABR). She is the Founder of Mesa Food Truck Fridays, a Member and Past-Chair of the City of Mesa Economic Development Advisory Board, and on the Board of Directors of the Greater Phoenix Economic Council.