Seven Steps for First-Time Home Buyers

Whether in Louisville, or elsewhere, first-time homebuyers need to follow certain steps to get on the pathway to homeownership.  Not without its challenges, home-buying is also exciting and the joy one feels walking into their first home is incomparable.

1. Get Pre-Approved

   The first step is to talk to a lender.  If you are serious about buying a house, get pre-approved instead of just pre-qualified, as that will show buyers that you are serious, too.  Your lender should be able to tell you what you need to do, give you advice on your credit score, and explain everything in detail.  If you do not understand, or feel rushed or confused and asking for clarification doesn’t help, then by all means seek out another mortgage professional.  Communication is vital during these steps, and you should feel comfortable giving your mortgage professional your trust.  If you aren’t, then listen to that.

2. Find a Real Estate Professional

   Since you are reading this on my website, I am of course hopeful that I may be your real estate agent in your home-buying endeavor in the Louisville, KY area.   Just as with the mortgage professional, you need to find a real estate professional whom you can trust, who listens to and answers your questions, and who guides you through the process with your needs in mind.  Be sure to communicate openly and honestly with your realtor about your wants, needs, and concerns, and expect no less than for him or her to communicate openly and honestly with you as well. 
   Many people have asked, why don’t I just call the phone number on the sign in front of the house? The answer is that while you certainly can call the listing agent on the sign, it is not a good idea to let them write the purchase contract to buy the house because the listing agent is hired by the seller and is representing the seller's interests, not yours.
   You may ask - how much does it cost to hire a buyer's agent? Crazy enough, it's free to the buyer. Why is that?  Historically, it’s the tradition is that the buyer's agent is paid out of the seller's proceeds; therefore the buyer's agent compensation comes from the seller's pocket. 

3. Search for a Home

   Make a list of needs and wants for your new home.  Your needs are those items that are not negotiable—number of bedrooms for your family size, accessibility for disabilities, distance of potential commute, etc.  Your needs are those wishes that are not necessary, but which you hope to find—a pool, lots of windows, a den, etc.  Share this list with your realtor, and continue to visualize the house you want until you find one that speaks to you.
   This website offers many advanced tools to search Louisville MLS listings, including options to search by neighborhood, zip code, price range or map search.  Once you have determined the area and price you would like, then you can register for Property Tracker and all new listings will be emailed to you daily. In many cases you will learn of these new listings even before most Realtors.

4. Visualize

   When you walk into a house, envision it empty (if it’s not vacant) and then imagine where you would put your belongings.  Where will the couch go, and the entertainment center?  What wall will your bed go against, and how will your clothes fit in the closets?  Then imagine yourself living in the home… Can you see yourself stumbling from the bed to the kitchen for a cup of coffee in the morning?  Can you imagine the walk from the kitchen to the dining table?  Where will you spend your free time at home?  While making a decision about the house, stay in tune with your feelings about the house and how well you can see yourself in it.  Could it feel like a home instead of just a house?

5. Be Practical

   Your gut feeling is important, but be sure to also look at the house with a practical eye.  Are the updates needed something you can handle?  Does it have enough storage?  How do its attributes compare with the list of needs you made in step three?

6. Make an Offer

   You might need a second showing to know for sure, but when you find the house you want, let your real estate professional know.  Together, you will put together an offer, and your real estate professional will write it up.  Once again, communication and trust are key, and the competence of your real estate professional is essential in this step.  Any mistakes at this step can cost both money and frustration, so if you are at all uncertain, please feel free to consult seek professional legal advice before you sign any agreement.  A good real estate professional will understand and support your decision.

7. Don't Stop There

   Stay active during what follows.  Once you have a contract on the house, post a list of important dates in a prominent place so you are informed about what steps need to come next.  (Your real estate professional will give you this information.)  Then find a good inspector and have the house inspected.  The money you spend on this will more than come back to you in the future.  In addition to the inspection, do an inspection of your own about 24 hours before closing.  A good real estate agent will gladly take you through the place one more time to ensure that nothing major changed since you saw it last and that the property is still in the condition of the one you agreed to buy.

There’s no place like home!   I’m excited for you to get to enjoy the feelings that come with owning your very first home.  If you have any questions or concerns about real estate in the Louisville, KY area, feel free to contact us.  You may e-mail us or call toll free (800) 550-6768 (502) 554-9600 and we will be happy to answer any questions you have.

Reasons to work with a Buyer's Agent

Confidentiality - your buyer's agent cannot disclose information about you or your financial situation to the sellers, the seller's agent, or anyone else, as this would give an advantage to the sellers during the negotiations.

Immediate - notification of new properties on the market - The best homes sell quickly even in slow markets.  Your buyers agent will search out properties that others might not even know are available. Buyer's agents keep an eye on "For Sale By Owner" properties and keep a list of homes that are coming on the market but are not yet advertised.

Peace of mind - Hiring a real estate specialist ensures that you have a knowledgeable advocate throughout the home purchase process.

Know all the facts - Realtors have access to private information about properties not available to the general public.

Lower your risk - There are many risks involved in purchasing a home and an experienced Realtor can help you minimize those risks.

Easy access to properties - Working with a real estate broker makes it easy to visit many different properties while you search for your home. Exposure to more choices.

Up to date indformation -The housing market is constantly changing and a Realtor can provide you with the latest market research to ensure that you're getting fair value.

Help with negotiations -No one can absolutely know what the other party to a transaction will decide, but an experienced real estate negotiator will help you make good decisions based on market conditions and any information he or she has been able to learn about the sellers and their situation.