June 2021 – Nancy E. Johnson

Three Ways to Find the Perfect Home For You

Are you looking to find the perfect home for you? Three ways to help you find your ideal home are checking your home’s location, knowing your style, and knowing your finances.

Location, Location, Location!

Finding the perfect home for yourself can get a little tricky. You must do your research about the area. Ask yourself, is the house’s location in a safe place, is it near schools, is it near your job? If you can not answer those questions, drive around a 2-mile radius to see if the location best suits you. If you plan to sell your home in the future, it would be a brilliant idea to research the property value.

Know Your Style

Do you know what style of home you are looking for? Do you like a rustic style home, or maybe a modern European style home? Knowing what type of home you are looking for will help you and your realtor find the perfect home for you. Consider maintenance. Do you want a big or small yard? Single-family homes offer more privacy if you have kids or pets, but that does mean you will have more maintenance. If you are looking into a condo-style home, you will have less maintenance and monthly dues to an association.

Financing and Budgeting

Money plays a significant factor in purchasing a home. It helps to be pre-approved and know what you qualify for before buying a home. Be careful not to take out a mortgage that is too big for you to handle. It can go downhill very fast. Using the 28/36 rule will help you create a budget. When you follow the 28/36 rule, your monthly housing expenses should not go over 28% of your monthly gross income. Expenses such as housing costs, car payments, etc., should not exceed 36% of your monthly gross income. If you stick with this rule, you will be able to afford your home comfortably.

To find the perfect home, you need to research the location of your home. Drive around and see if schools, stores, and your job is close by. Research the area to see if it is safe for you and your family. Know the style of home you want to purchase. Single-family homes or condos each bring different factors to consider when buying a home. The 28/36 rule will help you budget and finance your home comfortably. For more helpful real estate blogs, go to nancyopensdoors.com.

The home buying process can get very competitive. To make a firm offer on a home, you need an aggressive realtor, offer above the asking price, pay with cash, determine your earnest money deposit, and set a budget.

Realtor is Key

Your realtor is vital. Hiring an aggressive realtor and one that knows your goal and situation will help you purchase the house you want. A realtor that knows how to negotiate an offer will allow you to ease your mind and take some of the stress away during the home buying process.

Offer Above Asking Price

Buying a home can get expensive. Low offers will not cut it in the selling and buying market. You need to make a solid offer to beat a possible multiple-bid situation. Don’t let the asking over offering price overwhelm you. Buying the house you want, you will most likely go above the asking price. Depending on the house and the market, you may only need $2,000 to $3,000 more to show the sellers you are serious and can be taken seriously as a potential buyer.

Determine Your Earnest Money Deposit Amount

Earnest money deposit ( EMD) is the money that goes along with your offer and shows the seller your seriousness. Earnest money deposit is also known as a good faith deposit. Traditionally the customary amount of EMD varies on the market. The amount can range from $500 to $1,000. It averages between 1% and 3% of the purchase price. If you want to be seen as a competitive buyer, offering a high earnest deposit will show the seller.

Pay With Cash

Cash offers have an essential effect on keeping the deal primarily between the seller and the buyer. A financed deal usually comes with financing contingencies. Financing through a lender, you are at the mercy of the lender’s process. Paying with cash allows you to be in control instead of a lender.

Set Your Budget

Offering the above asking price and paying with cash when you buy a home means you need a budget. The first step in creating a budget is establishing a limit. Setting a limit will help create a budget that will help you determine how much you want to offer on the house. Be sure to only research and write offers for homes you can afford.

To be competitive in the home buyer market, you need an agent that knows the market and can negotiate deals. Offering over the asking price, paying with cash, and setting your earnest money deposit will show the seller that you are a serious buyer. Remember to set your budget and only write offers that you can afford. For more helpful real estate blogs, go to nancyopensdoors.com.