The only comprehensive up-to-date consumer Guide to Buying a Home
Buying A HOME IN THE TWENTY-FIRST CENTURY
John Cleek, Ph.D.
REALTOR®
Educator and Marketing Consultant
John@Home-Buying-Made-Easy.com
Copyright © 2010 by John E. Cleek and Assoc. Inc.
Order Now
Printed Version
$39.95+S&H
Download
(50% Disc) $19.95 net
Cleek's Commentary
Monthly Home Buyer Newsletter
Sign up Now
Before you start planning to Buy a House, it is essential that you make sure this is the right time for YOU to buy. There are four critical dimensions that every buyer should consider before going any further in the direction of home ownership. It may be too late for those who have lost their homes in the past, but it is absolutely the RIGHT TIME for you to put yourself to the test and determine whether YOU are READY to BUY A HOME.
PERSONAL READINESS
Owning a home requires a commitment to invest time in maintaining the investment you have made. Whether it is changing the furnace filters, moving the grass, shoveling snow, fixing the leaky faucet, or any of a dozen other things you most likely don't have to do if you are a renter. Are you subject to possible transfer by your employer?
LIFESTYLE READINESS
Is your lifestyle a match for home ownership or apartment/condo living? Are you prepared to stay in the same place for the next 3 to 5 years or more? If not, you may not be ready for home ownership.
EMOTIONAL READINESS
How do you handle stress? Are decisions difficult for you? Are you facing any other major life experiences over the next 90 - 180 days? Buying a home is stressful for most buyers. It will be more stressful if you are facing several major issues or decisions at the same time.
FINANCIAL READINESS
How much do you have saved for a down payment? Do you know your Credit Score? Are you maxed out on credit cards? How long have you been on your present job? Is your employer vulnerable to the current problems in the eonomy? Are you a two-income household? Could you manage if one of you lost their job or experienced serious medical problems?
Seven Steps to Homeownership
Step One
Hire An Agent
It is possible to represent yourself in court but it makes no sense to put your legal future at risk by failing to hire an attorney.
It is possible to file your own tax return but most people choose to hire a CPA to avoid putting their financial welfare at risk.
Likewise, you can search for a home on your own but your chances of finding the right home, at the right price are much greater if you hire an experienced buyer's agent.
Step Two
How Much House Do You Need?
Steps Two and Three should be viewed as interactive in a practical manner. It is unwise to assume an unlimited budget when you define your priorities for a whom yet without a target to work toward financing is problematic.
One of the more difficult but important tasks is distinguishing between your wants and your needs. You may want a large fenced yard with mature trees, two living areas, a party room with a wet bar and laundry room near the bedrooms. But unless you have unlimited funds you will have to decide which of these you actually need.
Step Three
Get Your Financing Arranged
Before you begin touring homes in search of your Dream Home, you need to find a lender who will pull your credit report and obtain your credit scores. Your lender will also need information from about your income -- amount and source. You will need at least a pre-qualification letter and preferably a pre-approval letter as the basis for the next step.
Step Four
Finding Your Dream Home
Find the right neighborhood or community, select homes that appear to be a good match with your wish list and start looking at homes.
The section on how to tour a home should be of special interest. This process is both an art and a science. We'll help you understand how to get the most of your tour of homes.
Step Five
Negotiating A Good Contract
The advice of president John Kennedy was sound as a principal of foreign policy and it is equally relevant as you approach the negotiation for the purchase of the house you have chose. He said, We should never negotiate out of fear, nor fear to negotiate.
One of the key principles you will learn about in the book is the importance of knowing your BATNA -- Best Alternative To a Negotiated Agreement.
Step Six
Exercise Due Diligence
A signed contract does not mean you have a deal. Before you can congratulate yourself on being a homeowner, The stage I refer to as the Due Diligence period may be the difference between making a deal you will live to regret and moving into your dream home.
As soon as the contract is signed, a window opens for the buyer to bring in a trained inspector to perform a detailed inspection of the interior and exterior of the home, the windows and doors, the mechanical/electrical system, the roof, the attic, etc. Most inspectors will be happy to have the buyers present for the inspection.