buying a home with little money in savings

Home Search Recommendations For A Positive Buying Experience

by Fernando Moore

When you want to buy a house, you are going to be searching in a home market that may have a great deal of competition from other buyers or a limited amount of homes for sale at your price range. No matter the challenges you face in the market, your real estate agent and other tools throughout your search will help you take the right steps and find the right home. Here are some recommendations to help you have a successful home purchase experience for the right home buying opportunity.

Complete Your Home Search

At the start of your home search, you will need to have some information on the market and a spending limit. To determine your spending limit, talk to your mortgage broker about applying for a pre-qualification. This will provide you with a maximum loan amount to help guide your search criteria and establish a spending limit. Be sure you also consider your down payment amount when you decide on a spending limit because if your loan pre-approval amount is $300,000 but you have $20,000 as a down payment, this increases your total buying limit to $320,000. 

Decide on an area for your home search based on map coordinates or specific neighborhoods. This will help guide you in establishing a search for the home size and price and also the home's age or style. Your real estate agent can help you out by compiling a list of homes for sale that match your needs and budget.

Offer the Right Price

When you find a home that you want to buy, this comes the opportunity for you to evaluate the home in order to make a fair offer price. The price that you offer to purchase a home needs to be accurate and also competitive to match what other homes are selling for. You don't want to offer too much and overpay for the home, but on the other hand, you don't want to give the home a low bid and risk offending the seller so they don't even respond to your offer.

Your real estate agent is not going to tell you how much money to offer for a home purchase, but they will guide you to making a good price decision with all the right information. Your realtor will provide you with comps in the market, which give you home sales for similar properties. They are also going to help you evaluate and compare your home to others that have recently sold. The price you decide to offer for the home should be yours so that your realtor does not sway you in any direction with their opinion of a sale price. Then, the decision to purchase is completely yours and your realtor only guided you through the process.