Dear Phoebe,
“We’re about to start house hunting. We know this market is really competitive for Buyers. What should we do first?” Andrew McGinley of Fairfield, Connecticut.
Good question Andrew! As Ben Franklin once said, “by failing to prepare, you are preparing to fail.” Taking the time to get your ducks in a row before you start house hunting is one of the smartest moves you can make, especially in a fast-moving Seller’s market like the one we are experiencing here in CT (across the country frankly!).
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Here’s your game plan:
1) Get Pre-Approved: This is singlehandedly the most important first step. You need to know what you can afford and have a Lender at the ready to help you customize a Pre-Approval letter. Connect with your Lender, know your Budget and have that Pre-Approval in hand so when you find a house you love you can POUNCE.
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2) Hire a Knowledgeable Agent: If I had a penny for every time someone wants to buy a house without an agent, I’d be retired at 45. You want an expert that’s YOUR advocate. A Buyer’s agent works FOR YOU. The Listing Agent works for the SELLER. You want your own agent who represents your interests. Best part? 99% of the time, the Seller pays the brokerage fee for the agent.
Bonus Tip: Let me bust a big myth while we are on this topic…you will not get a better deal going direct. The Seller is going to pay a commission to the agents regardless. While I have handled both sides of a transaction more than once, it’s hard to be Switzerland when we are in a super competitive Seller’s market. Hire your own agent to represent you and help you get the house you love. Chances are you’ll get an even better deal as you’ll have someone in your corner from start to finish handling the heavy lifting for you.
3) Get to Know the Area: You’re about to Buy your Biggest Asset. Get to know the town (towns!) where you’re house hunting. Drive around the area, have lunch at a local restaurant, find out where the grocery store is, and the major traffic routes are located. Grab coffee and people watch. Imagine it’s a normal day for you. Can you see yourself living in the town? Make sure you like where you’re going to live before you start house hunting.
4) Look for 8 out of 10: No house is perfect. Vary up your search criteria. Be flexible and realistic. Look at everything from Capes to Contemporary homes. Take advantage of Open Houses and search different house styles online. Get clear on what you want in a house but realize (and this advice is really for you first time Buyers), you’re not going to find the PERFECT house, in the PERFECT location at the PERFECT price. If you find a home that checks 8 out of 10 boxes, go for it!
While it’s a challenging market out there, if you take the time to get prepared, you’ll be ready to go when you find a house you love.
Extra Bonus Tip: Need suggestions on Lenders and places to have lunch? Ask your Buyer’s Agent. Chances are your Agent can suggest the best place for everything from a burger to a Mortgage Broker.
Have a question for me? I'd love to hear from you. Email me at pschreiner@wpsir.com or ask me a question below – just hit that REPLY button!
Follow me on Instagram @phoebeschreiner for all things Real Estate, New England, Design and Living on The Shoreline.
From My Nest to Yours,