With all of the real estate information out there, buying a home should be easier than ever. However, with the speed at which the market is moving, it is easy to get overwhelmed as you try and process everything you see online.
We often get calls from clients asking about homes they are seeing on real estate websites and 90 percent of the time those homes are already under contract or, in some cases, were even sold months ago. Many websites maintain old information just to keep buyers hunting and clicking on their sites.
If you are serious about buying, we really believe you need a game plan and an experienced REALTOR® by your side to help you navigate the complexity of today’s rapidly moving market. We have been able to place all of our buyers in homes even in this highly competitive market. Here are a few tips to prepare you for your home buying journey.
- ESTABLISH YOUR BUDGET
Start by getting prequalified and understanding what you can afford. You may be prequalified for $450,000, but, in today’s competitive environment, you may choose to see properties in the $375,000 to $400,000 range to allow room for competitive offers. It is also important to evaluate your cash position and discuss your options with your REALTOR® and lender. You need to understand the financial impacts of different price points, interest rates, and loan products. - LEARN WHAT YOUR MONEY CAN BUY
Prices have increased over 40 percent in the past year, so what you can buy today may differ from what you were prequalified to purchase three months ago. Be willing to adjust your expectations so you can get excited about what is actually available to you in the marketplace. - KEEP YOUR OPTIONS OPEN
We have yet to find a buyer who has not had to compromise on at least a few things on their wish list — regardless of price point. Start with the most important criteria in your search. Start with a broad search by price range and general area to help you understand the market and discover where you can find the best opportunities. - BUY WITH EYES WIDE OPEN
Today’s market requires a strong dose of real reality — and not just HGTV reality! Look at the condition of the AC and not just the cute shiplap wall. A new roof has more value than cute staging and a trendy light fixture. A white kitchen doesn’t make up for a bad lot. Look at the entire package of the home and make an informed decision before you throw in that over-asking bid! - UNDERSTAND THE MARKET OF TODAY
This is critical. Listen to your REALTOR® and create a strategy for success before looking at property. Today’s market is completely different than it was six months ago, so buying with the same expectation as a year ago will be challenging. It may take a couple of tries to get an offer accepted and you may have to adjust your expectations along the way, but ultimately you can achieve success.
Lastly, think ahead. Don’t get caught up in the moment and lose sight of the future. Be sure to ask yourself a few questions before you are all in. Will this home be sellable down the road? What are some of the repairs that may be coming down the pike — and will I have the resources to do the repairs? Will I be happy in this location?
It is easy to get caught up in the moment and not really think through the process. Getting ready to buy? Looking for great representation? Give us a call! We can help you craft a great strategy and help you get the answers you need to start your home buying journey!
John and Natascha Karadsheh are co-owners of KOR Properties, a boutique real estate brokerage serving the Valley of the Sun, and the creators and founding sponsors of Mesa Food Truck Fridays. John has been a Multi-Million Dollar producing agent for over 19 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), a member of the Arizona Regional MLS Rules & Policies Committee & Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.
Natascha is an Associate Broker, a Multi-Million Dollar Producer, Founder of Mesa Food Truck Fridays and Member and Past-Chair of the City of Mesa Economic Development Advisory Board. You can reach John at (602) 615-0843 and Natascha at (602) 909-4995, or visit their website: KORProperties.com.