Let's Put the FUNN

Back Into Buying a House

You’ve probably heard this before, but I’ll say it again: There is a Sale going on out there in the housing market, and this is a great time to buy a house! Whether you are looking for your first home or you need more living space for your expanding family, get out there and have fun as you look for that new house.  Let’s put the FUNN back into buying a house.

May 20, 2009

You’ve probably heard this before, but I’ll say it again: There is a Sale going on out there in the housing market, and this is a great time to buy a house! Whether you are looking for your first home or you need more living space for your expanding family, get out there and have fun as you look for that new house.  Let’s put the FUNN back into buying a house.

If you are serious about finding that new home, FUNN come before fun.  Let’s explain:

First, you need to get your Financing in order.  See a mortgage lender and get pre-qualified for a loan.  This means that a mortgage company determines that you have the assets and job stability to finance a mortgage, and it gives you an idea what your maximum mortgage payment would be, and the highest purchase price you can offer on a house.  The lender will provide a pre-qualification letter that you include when you make an offer on a property (a full commitment comes after you sign an agreement of sale, an appraiser determines the home’s value, and then reports back to the mortgage lender).

Without that pre-qualification letter (unless you’re buying a house with cash), you’re not in a position to make an offer.  In that case, you’re not ready to look at houses.  I may take you out to see a house the first time we meet, but if you don’t have that pre-qualification or are not in the process of getting it, you’re not getting in my car to see houses, or in the car of most Realtors. 

Next, you need to Understand the Real Estate market.  We have seen the frenzy of houses selling in a day or two back in 2004, with each offer raising the price higher and higher.  A few years later, prices starting falling on homes that sat on the market for months or even a year.  Today’s market is made of up seller’s who have reluctantly listed their houses at prices lower than they wanted, and then lowered them again as time went by.  As a buyer, you need to know when to offer a lower price, when to offer the asking price, how a particular house compares to it’s peers in the neighborhood, and what else goes into making a good offer.  As your Realtor, I can provide the research and advice you need in making those decisions.

Next, Narrow down your focus. Decide on your maximum price range, your neighborhood, your must haves (2 bathrooms, a garage, a backyard with a fence).  Have a plan.  Again, a Realtor can help you find houses that meet your specifications and send you information from Multiple Listing.  When you search on the Internet, keep your goals in mind and weed out the houses that aren’t the best fit.  Yes, you will make some adjustments to your criteria after one or two outings with your Realtor.  Looking at houses that are “just in your price range” can be a year-long drag that leaves you frustrated, and just isn’t fun for you or your Realtor.

Your Financing is in order, you Understand the market, and you Narrowed down your focus. Now Just Go Do It!  Don’t wait for the bottom to drop, because when prices start to raise, you’ll be scrambling. Dive in and have some fun looking for the house that is right for you.  And I’ll have fun helping you do that.  Let me know if you need help getting ready or finding a mortgage broker – I’m just a phone call away!

Will Schirmer, RE/MAX Legacy, 215-822-4884 or 215-822-8200.