Searching for a New Home: The Keys to Finding the Right Place To Live

Searching for homes is supposed to be the fun part about buying a home, but if you don’t do it right it can be a big time and money drain.  I’m Sean Engmann a certified real estate negotiation expert and first time buyer specialist.  Searching for homes the right way is one of the biggest keys to finding the right home for you, at the right price.

There are two different phases of the search.  Each is very important, but both phases should be handled very differently.  The first phase is the pre-search.  This is when you’re evaluating the market and trying to decide if you want to buy.  You’re trying to find out which areas work best for you and what are some of the features of a house that you want to have.  You’re also kind of dipping in your toe and getting a general sense of the market.  This is the phase in the search where you can scour websites and visit lots of open houses.  You can keep an eye on the prices and ask questions about the market, but at this stage, you’re not going to write an offer.

The second phase is the active search.  This is when you’ve decided for sure that you’re going to buy, you’ve defined your musts and busts and you have a pre-approval letter in hand from a lender defining your budget.  At this stage, if you haven’t already, it’s important to hire a Realtor and let your Realtor take a lead on the search.  Arrange private showings, don’t wait for open houses.

The biggest mistake that most buyers make is that they never move on from the pre-search.  They continue to conduct the search on their own and go to open houses.  Often, they don’t even talk to a lender until they decide that they want to make an offer.  This is problematic for two main reasons.  First, the buyers have no idea of the market value of the homes they’re looking at, so they trust the list price.  Especially nowadays, homes are being listed considerably below the market, so it’s likely that any offer around list price wouldn’t stand much of a chance in a multiple-offer situation.  Because of that, buyers tend to look at homes priced within their means, which are actually beyond their means, which can lead to a letdown.

Second, not having a pre-approval letter in hand, or a Realtor for that matter will lead to a fire drill when trying to write an offer.  You won’t have time to properly evaluate Realtors or lenders and do everything in a rush.  In fact, that’s one of the reasons why the list prices are so low – many Realtors like to use open houses as an opportunity to generate buyer clients or to double end transactions, which many aren’t skilled enough to do effectively.

When you’re actively searching, it’s imperative to have a pre-approval letter and a trusted Realtor to take the lead in the search.  That can also give you early access to properties and potentially some off-market opportunities.  If you love looking at properties, you can still do so, but bounce any ideas off your Realtor ahead of time to make sure you’re not wasting your time.

If you’re currently searching for a home, or considering entering the market and would like to chat further, just choose a time in the calendar to talk so we can come up with a plan for you.  Thank