Home Buying Myths You Shouldn't Believe

If you’ve been thinking about buying your first home, chances are you’re getting tons of advice from everyone you mention it to. It can be pretty overwhelming which is why I want to share 3 home buying myths you need to know if you’re considering homeownership. These will help debunk some of the things you may be hearing from people who want to give their advice from the kindness of their hearts but probably aren’t professionals.

MYTH #1: You Have to Put 20% Down to Purchase a Home

This could be the biggest home buying myth of all time! Putting a minimum of 20% down on a house does have some financial benefits .. BUT it isn’t required.

There are several options when it comes to financing your home so you’ll want to meet with a local lender to discuss these options before jumping head first into the process.

There are loans that require as little as 3% down as well as resources for buyers struggling with down payment money and first time home buyer programs.

MYTH #1 Tip: Do not get pre-approved from an online lender. Find someone local who you can actually sit down with, understand your options and make the best decision for your financial future.

MYTH #2: It Doesn’t Matter if I Don’t Have a Real Estate Agent

Some buyers prefer not to commit to working with one specific agent and therefore they don’t take advantage of hiring a buyer’s agent to help them with their home purchase. This means they’re on their own for scheduling showings, being alerted of new listings and when it comes time to negotiations, they won’t have anyone working in their best interest.

This is not a great combination because it can prevent you from getting an Accepted Offer on the house you really love because you haven’t been educated on the market or how quickly you need to make a move. It could also result in you losing money or overspending because you don’t have anyone negotiating on your behalf. I don’t know about you but if I’m buying my first house, or any house for that matter, that does not sound like a situation I want to be in.

MYTH #3: Wait Until “Spring” to Start Looking For Homes

Real Estate Agents hear this ALL. THE. TIME. I want to share why you shouldn’t wait for a specific time of year to start your home search, especially Spring.

There is less competition when you’re not in the prime months for buying and selling real estate. Buying in the “off season” could save you money because there are less buyers out which means less potential competition when writing an offer. It’s best to start your home search when you are ready rather than waiting for a certain time of year. There are always new listings coming on the market and you could be missing your perfect house if you want to start your search until a specific time of year.

If you’re considering homeownership, you’re already ahead of the game by knowing about these 3 myths. Your next step should be to sit down with a local Real Estate Agent who can go over the entire process with you and set you up for success.

Top Lifestyle Considerations for Buying a Home

You’re not just buying a house, you’re buying a lifestyle! That means when you’re writing out your list of must have home features and deal breakers, you need to think beyond the “house data” and figure out which features to focus on that will give you the lifestyle you want to live! As a buyer, you might say you’re looking for a 3 bedroom home with a finished basement on at least an acre and with an updated kitchen. An example of what you really might be looking for is a place to raise your growing family, a kitchen that overlooks the private backyard where you can watch your kids play catch while you make dinner, and extra space in the basement for games, toys and movie night! That’s just an example but I think you get the idea. So the lifestyle you are going to have in your new home is something you want to consider when determining which home features are best for your needs.

Number one - LOCATION MATTERS FOR YOUR LIFESTYLE! You hear it all the time in the real estate world – it’s all about the location, location, location, location… and it really is true! Because while you can change paint colors, counter tops and put on that massive deck you’ve always dreamed of, you can’t move your house to a new spot (not without a lot of money anyways).

Think of things like what your work commute will be like, how far of a drive you’re willing to have each day, the features you want in your community, and the school district you want to be in if that is important to you. Do you want to be in walking distance to the downtown? Do you want to be set further back from the road for privacy? What about the size of the city you live in? Do you want the feel of a small town lifestyle or are you happier in a busier city? The location of your home will be something that isn’t going to change so figure out what is essential to you when it comes to the location of your home and the lifestyle it will create!

Now let’s talk about the home features that fit your lifestyle. When you think of home features it’s easy to automatically jump to your running list of criteria such as the size of the garage, how many bedrooms you want, that must have updated kitchen and all of the “house data” like I mentioned. However, you are ultimately buying a lifestyle, not just a house. So I have some things for you to consider when it comes to the type of lifestyle you are ultimately looking for when you make a move! Write down these questions and really think about what your answers are:

1. Where do you spend most of your time at home? If you love to cook and spend most of your time in the kitchen, you’ll want to prioritize the layout of the kitchen when looking for a home. You can always add in upgraded quartz countertops or that dreamy double oven but the size, layout and location of the kitchen should be a top concern if you don’t want to do any major renovations.

2. What is something you wish you had in your current home?

3. What is something you don’t want any longer in your current home? Is your yard a lot to maintain and you want something smaller with a lot less maintenance? Maybe it’s the opposite and your current yard is just too small for the lifestyle you have making one of your top priorities having a bigger yard with privacy.

4. Which room in your house do you spend the most time in?

5. How much space do you need to live comfortably and be able to enjoy the things you love the most?

Are you hoping to have enough bathrooms to avoid chaotic mornings?

These questions will help you determine which features could be the most important to focus on when the time comes to look for a new home. Maybe features like hardwood floors aren’t as necessary as having a layout that is perfect for entertaining and hosting holiday parties. You can always swap out flooring later but the layout will be a little harder to change!

Think about how much time you want to put into your house. Do home flipping shows on HGTV resemble your homeownership goals? Many buyers are intent on finding a house they can remodel exactly they want they want which is awesome! However, they often don’t realize how much work, time and money it can take. HGTV can make remodeling and flipping houses look a lot easier than it is in reality. Consider how much time you have to spend on home projects before getting yourself into something that is over your head and potentially over your budget which leads us to…

Your lifestyle budget. Lastly, make sure to budget for your lifestyle, not just your house. It’s important to consider how much you can afford comfortably, not just what you can afford on paper.  Many buyers are pre-approved for a significantly higher amount than what they are actually comfortable spending on a monthly basis. Think about other expenses you have when it comes to your lifestyle – what else is important to you? Do you love to travel or go out to nice dinners on a regular basis? Do you love attending as many games of your favorite football team as possible? What hobbies do you have that cost money every month?  Make sure the amount you spend on your house doesn’t eat up all of your extra funds so you’re glued to the house and can’t have any fun doing the things you love!

There you have it, the top lifestyle considerations for buying a home! Location, home features that fit your lifestyle, how much work you’re willing to do and remember to budget for your lifestyle! If you’re considering buying a new home in the near future and you want to chat more about the type of lifestyle you’re looking for, comment below or send me a direct message so we can set up a time to grab coffee!

What Exactly Does a Buyer's Agent Do?

After helping many first time home buyers successfully buy their dream home, I noticed something that I want to share with as many future first time home buyers as possible! What I noticed was that several of these buyers weren’t aware that they had the ability to use a buyer’s agent to represent them in one of the biggest purchases they will ever make!

I want to put this out there to help educate as many people as possible that you can and should have an agent who works for you when you are ready to buy a home because let’s be honest, buying a home involves a lot more steps than most people realize! So what does a buyer’s agent do? In a nutshell, they help you, the buyers; navigate the entire home buying process one step at a time. But let’s dive in and break this down! Make sure you read until the end because there is great news waiting for you there!

First things first, a buyer’s agent will start by meeting with you to go over the entire home buying process to get you fully equipped so you know exactly what to expect. They will help you identify your needs and wants in a home including your top priorities as well as your deal breakers. They will then set up a custom home search that will find listings that match your wants and needs only so that you don’t have to filter through hundreds of listings that don’t even fit what you’re looking for.

When you start looking at houses, you’ll notice that they will be listed by a real estate agent. What is great about a buyer’s agent that works for you is they work in your best interest, not the sellers. In addition to helping you find a house that meets your needs, they will also help you understand your options when it comes to writing an offer, advise you on the market, help you determine what price to offer the sellers and most importantly, negotiate on your behalf. If you find yourself in a multiple offer situation, they have strategies to help make your offer stand out while matching the seller’s priorities. Once you have an accepted offer, they maintain strong communication with both you and the listing agent so you will always be kept in the loop and never left wondering what’s next!

A buyer’s agent will remove as much doubt as possible. They will provide you with all the tools necessary to make an informed decision before you take on the investment of owning a home. Think of them as your go-to resource throughout the entire transaction. Not only will they educate you through each step, they will refer you to their trusted vendors. From lenders to home inspectors, title companies, and contractors, there can be so many moving parts in a transaction that you’ll be thankful to have the help of trusted professionals and save time trying to research them on your own. All of this will help you have peace of mind throughout the home buying process and prevent you from falling into the buyer’s remorse trap!

It’s time to fill you in on the best part about hiring a buyer’s agent. Here it is.. it costs you absolutely nothing! You might be thinking this all sounds great and I would love to have someone work on my behalf but how much is someone like this going to cost? Having a buyer’s agent won’t cost you anything because the sellers are responsible for paying the buyer agent’s commission. So if you’re already searching for homes online, googling questions you have about the process and you’re ready to dive in, what are you waiting for? It’s time to find yourself a buyer’s agent who will work for you and walk you through all of this – literally, one house at a time!

Look for a buyer’s agent who you feel is a good fit for helping you through the process of buying a home. When you’re interviewing different agents, you’ll want to make sure you choose someone who not only seems knowledgeable but someone who will be available, willing to educate you, able to communicate the way that you want and most of all, someone you feel comfortable working with!

4 Home Buying Mistakes You Can't Afford to Make

Whether you're getting married, looking for more space to raise a family, want to stop renting and start investing, or maybe you're looking for a rental property you can make some extra cash on - The reasons people have for wanting to buy a home can vary. However, whatever your reason, you'll want to be sure to avoid these top 4 mistakes (trust me, you can't afford to make them!)

#1: Let's start by talking about "Agent Hopping" - This is something you'll want to avoid doing when it comes time to purchasing a home. To position yourself for success when it comes to finding and getting an accepted offer on your (insert correct answer: dream home, starter home, investment property, etc), you're going to want to have someone representing YOU! On the flip side, let's say you don't want to be tied to anyone specifically, you think you know enough about the process and want to be in control. Well in that case you're most likely going to be contacting the agent who is listing the house you are interested in. That means you won't have anyone to educate you about the process (it's not HGTV, so unless you're a licensed Real Estate Agent, there are going to be things you don't know). You won't get detailed information on the market, recommendations for how much to offer or any red flags you should be aware of.

You'll want to interview agents before you start looking at homes so that you can find someone you trust to be your advocate throughout the entire process. Buying a home is often the biggest financial investment you will make and you'll want someone who works in this industry to be your advocate along the way.

#2: Miscalculating the costs associated with buying a home - Purchase price, check! Down payment, check! All set? Not so fast! There are other costs associated with buying a home that you'll want to be aware of well before the time comes. Your down payment could potentially be the largest expense but there is also the earnest money deposit, the home inspection, the appraisal, radon testing and other expenses you'll want to talk to your Real Estate Agent and lender about.

When it comes to costs associated with the financing side (in addition to your down payment), you'll want to check with your lender to find out an estimate on your closing costs and how much you'll need up front for homeowner's insurance and taxes. You can also see if there are any first time home buyer programs that may help offset some of these costs. Sometimes, the lender will allow you to ask for a certain percentage in closing cost credits from the seller. Depending on your situation, this is something you could include in your offer to purchase to help offset some of your closing costs. Make sure to discuss these options with both your agent and lender so that you fully understand how they work and how best to use them.

#3: Skipping the Home Inspection - "But I'll save $500 if I skip it and I'd rather spend that money on new home decor from West Elm!" - Pretend Buyer. Home inspections are not necessarily required in order to purchase a home. So during the transaction it might seem intriguing to some buyers to skip the home inspection and save some extra cash to put towards the home itself. However, I highly, highly, highly (I REPEAT - HIGHLY) advise against skipping the home inspection. Number one, you're going to want to know about any major issues the home could potentially have. You'll also want to know about smaller repair items that need to be addressed along with any future maintenance issues to watch out for. A home inspector is there to spot the major red flags that could end up costing you a lot of money if you don't figure them out before closing. Ask your agent for home inspector recommendations or feel free to do some of your own research. You can use whoever you feel comfortable with as long as they are licensed in your state.

#4: House hunting without a pre-approval - I'm sure you've heard this one as your eyes roll back into your head and you think "enough is enough with the pre-approval!" As much as it may sound like a broken record, it is a big deal and you'll want to know why! For starters, most agents won't show you a home without a pre-approval letter and most sellers won't entertain an offer without one either. So if a house comes along that happens to be your dream home and you're not prepared, you could miss out just because you didn't take the time to get pre-approved (and trust me, it doesn't take long).

Lastly, if you haven't found a lender you want to work with or gotten pre-approved, you may be shopping outside of your budget. You might know what your monthly budget is but there are several other factors taken into consideration besides your paycheck. Have you checked your credit score lately? Do you know your debt to income ratio? What about the various types of loans and what they entail? Some will require higher down payments than others. If you start searching for houses listed for more than what you can actually afford, you'll set yourself up for disappointment when you realize you can't buy the house with the awesome home theater you had your heart set on.

If you're ready to jump into the home buying process right now, make sure you're avoiding these big mistakes! If you want to discuss this in more detail, feel free to reach out and we can set up a time to grab coffee (your go-to coffee order is on me!) I love teaching buyers about the ins and outs of the home buying process to ensure they have the best experience possible and avoid any mistakes that can throw you for a loop!

How to Make House Hunting as Easy as Binging Netflix

You know the feeling when you struggle to find something to watch on Netflix because it’s just so overwhelming with the number of shows and movies to choose from? Well the same thing can happen when it comes to house hunting! There are so many real estate websites and so many houses to look at. Digging through countless websites, having your phone glued to your hand, constantly hitting refresh to make sure you don’t miss anything can get a little tiring. Instead, there is a simple method you can implement to make it a whole lot easier. When you learn how to house hunt “Netflix style” it’ll save you a ton of time and prevent those feelings of overwhelm – I promise! So here’s how to do it!

Step 1 – Find your Homestyle Genre: This is about going beyond the general criteria of 3 bedrooms, 2 baths and a 1 acre lot. This is about diving deep and figuring out what you’re specifically looking for in a house. Ask yourself questions such as:

• Which space in a house is most important to you?

• Which room will you spend the most time in? Is the living room where you’ll spend quality time every night or is the outdoor space more important because you want to be surrounded by nature and have ensured privacy?

• Next think about words that would describe your ideal home. Do words like cozy and full of character come to mind? Or does modern and luxury sound more like your taste?

• What is a space or feature you don’t currently have but would love to have? More space to entertain? A private yard with mature trees? A designated home office space that will allow you to do more focused work?

By thinking outside the box about the lifestyle you want your future home to provide, you’ll begin to paint a better picture of which home features to pay more attention to and which style of home will be the best fit.

STEP 2 – Determine What’s Trending: Just like Netflix gives you a list of “Trending movies” you’re going to make your own list of what’s trending when it comes to what is important to you in your future home. After writing down answers to the previous questions, create a list of your top 3 home must haves and deal breakers. Next you’re going to review everything you wrote down. Do you see any themes or details that pinpoint the type of house you are going to fall in love with aside from the number of bedrooms? Your list could be painting a picture of an open concept style home with lots of storage and natural light. Or maybe your style is a home with more separated spaces with a major focus on the style and layout of the kitchen.

STEP 3 – Create Your Home List Based on Your Preferences: Before starting this step, you’ll want to make sure you’re working with a Real Estate Agent so they can set up your custom home search for you. They will take all of the general criteria that you’re looking for and customize your home search so that you can will receive a list of all the homes on the market that match the main criteria you’re looking for. This is where it’ll narrow down your minimums for bedrooms, baths, lot size, square footage, year built, etc. This is also the time you may want to browse through any other sites that you’ve been searching on and write down any homes you’ve had your eye on so you can bring everything together with your real estate agent.  

STEP 4 – Preview Homes: Once you’ve compiled the entire list of homes that meet your search criteria you’re going to want to preview them online before scheduling a showing! Looking at homes online is considered a first showing because there is so much you can see and learn about a home before ever stepping foot in the house. When you’re previewing the homes, have the list of the questions you answered handy so you can see which ones fit what you’re truly looking for. If a common theme was entertaining space and open concept rooms – you’ll probably want to avoid homes that have a smaller kitchen and living area or lack open areas.

STEP 5 – Narrow the List Down to Your Top 5: Here’s an example of how this looks: Let’s say your favorite space in a home is the living room, you want a house with lots of character and charm and your deal breaker is a cookie cutter subdivision. Along with that, you need at least 3 bedrooms and 2 full bathrooms.

When your custom search comes up with the list of homes and one of the homes meets the 3 bedrooms, 2 full baths criteria but was built last year in a new subdivision of homes with the same builder, all on quarter acre lots and has a smaller living room, you’ll probably want to consider eliminating this one because it isn’t meeting your main needs.

After previewing the homes and comparing each one to what you have on your  list, it’s time to narrow the list of homes down to your “Top 5”. These are the 5 homes you’ll want to schedule showings for and begin your search with. From there, if none of those work for you, keep your search going this same way. Watch for new homes to hit the market (like the new releases on Netflix) and if they meet your detailed criteria, set up a showing!

By house hunting with this method, you’ll eliminate the stress of feeling like you need to see every single 3 bedroom, 2 bath home when you truly know what you’re looking for and can eliminate many of them online. That way when you schedule a showing to see a home that truly fits what you want, you’ll know what to look for instead of becoming overwhelmed with all of the other homes that really don’t meet your needs at all.

How Much Below the Asking Price Should We Offer on a House?

You’re getting ready to start the home buying process, browsing through all the real estate websites to see what’s out there and have started your new home wish list. You’ve probably been getting advice from friends and family members about how to get a good deal and things you should do to avoid overpaying. Now you’re wondering how much do you actually offer on a house? Is there some kind of magic formula to follow or do you just throw out a number that you’re comfortable with? Here are a few things to consider before determining how much to offer on a house:

Know the Market: Before even considering how much to offer on a home, it’s important that you’re familiar with the market you’re going to be looking in.

The market can vary between cities and price ranges so you’ll want to meet with your Real Estate Agent before jumping into the actual search process so you can learn about the current market of the cities you’ll be looking in.

The ability for you to submit an offer below the listing price will entirely depend on whether you’re in a buyer’s market or a seller’s market. Typically if you’re in a buyer’s market you’ll have more flexibility on price because the number of homes available is high and they tend to sit on the market for longer. The opposite is true if you’re in a seller’s market where inventory is low. This can lead to multiple buyers being interested in the same property, which would mean you wouldn’t want to lowball at all but instead offer at or maybe even above the list price. Again, it depends on the property.

Check the Number of Days on the Market: The second factor you’ll want to consider is how long the home has been active on the market to get an idea of the demand for the property. For example, if you want to write an offer on a house that has only been on the market for 2 days you probably won’t want to offer the seller way below the asking price if you hope for them to at least counter your offer. On the other hand, if the house has been sitting for sale for over a year, youll probably have some more flexibility to go in with an offer lower than the asking price.

Remember that even if a house has been sitting for an extended period of time, you’ll want to use market stats to back up your offer. This is something your Real Estate Agent can help you with. If you really want the offer to be taken seriously, you’ll want to avoid completely offending the sellers so make sure you’re not just blindly throwing numbers around.

Check the Comps: You also don’t want to overpay for the home so it’s important to look at neighborhood comps and see what other homes in the area have been selling for. Then compare the difference in features, square footage, updates, and any other major factors. The comps are what you can use to justify your offer price when you first submit an offer. This will back up why you’re offering the amount you’re offering instead of just appearing like you’re trying to get a deal.

Ask Yourself – On a Scale from 1-10, How Badly Do I Want This Home? The last thing you should determine is how badly do you want the house. Ask yourself – if your offer were to be rejected, will you regret not coming up in price or can you easily move on to the next house.

Try thinking about the home on a scale of 1-10. If you finally found everything you’re looking for, would it be worth losing for X amount? Decide what X is. If you lose it for more than what you’d regret losing, then it’s probably for the best!

There isn’t one answer on what you should offer on a home and there also isn’t a magic formula. You should work with a Real Estate Agent who you trust to guide you in the right direction and make the best decision for you.