If you’re looking to buy a home, chances are you’ve inquired about one of these questions listed below. We can’t blame you since this is the biggest investment you’ll make in your life! There’s so much that goes into buying a home and you should seek advice from the trusted professionals in this field. We hope to answer the majority of your questions, but welcome a phone call if there’s anything we don’t cover!
1. How much home can I afford?
This, of course, depends on many factors, two of which being your annual household income and other financial obligations. Start by visiting this mortgage calculator and plugging in some numbers to see an estimated monthly mortgage payment you can afford. We highly recommend you completing this step before you start looking at homes so you know what to be looking for. The next step is visiting with a loan officer and getting pre-approved. If you need recommendations for a loan officer, please call or text us at (405) 410-9696 and we would happy to share contacts our highly recommended contacts with you!
2. How do I buy and sell a home at the same time?
This is a great question for those who currently own a home they need to sell. If you happen to come across a home you love, but your current home isn’t on the market yet, there’s a document called a “Contingency Addendum” that would be included in the offer we send over. This document explains to the seller that you agree to buy the home only if you sell the one you’re in. There are a couple of downsides to this method — 1.) the seller doesn’t agree, 2.) another offer comes in from a different buyer that’s similar in price, but doesn’t have a contingency addendum attached to it. Therefore, the seller would likely choose the other offer over yours. The only other option is putting your house on the market, and right when someone makes an offer and it goes under contract, you can write a “stronger” offer on a house because the home sellers know that yours will most likely sell since it’s already under contract.
3. How low is too low?
Typically, the rule of thumb is asking for no more than 3% off of list price (this also includes closing costs). So if you’re making an offer on a $200,000 house, you probably shouldn’t make an offer any lower than $194,000. There are certain exceptions to this rule depending on the condition of the home and days on market, but we’ll get there when we get there!
4. How do I know if the property is priced too high/too low?
That’s where we come into play! Any one of The RED Team members can prepare a Comparative Market Analysis for you. This document compiles all house in the subject property’s neighborhood and we take the time to compare houses based on the given values. It will give us average sales prices and we determine whether the house is price too high or if it hits the mark.
5. Are home inspections mandatory?
No, but this is something we would NEVER recommend you pass up. Spending a few hundred dollars on a home inspection can potentially save you thousands. It will give you peace of mind to close the deal and will most likely catch any major issues with the home that may deter you from following through on the purchase.
6. How long does it take from the time the home goes under contract until close?
Unless you intend on paying with cash, it typically takes 30 – 45 days to close on a home. This period of time allows you to do a thorough investigation of the property and gives the bank time to complete the loan.
7. Is there a certain number of homes I should look at before I find “the one”?
This really depends on the buyer. Some are able to find a home that suits their needs in a few hours, and others may take a few months. On average, home buyers typically look at 10 homes before they decide to make an offer. It really helps to know what specific area of town you’d like to live in. And thank goodness for the internet! You can easily weed out houses online so you’re not wasting precious time driving to homes you’ll likely not take interest in.
Do you have any other questions? If so, please leave them in the comments section below and we would be happy to answer them for you!