Your Home Buying Checklist

Let’s quickly run through a checklist of steps anyone should take When Buying a home

Buying a home is a significant life milestone and financial investment, but the process can often feel daunting and complex.

That’s why we wanted to create a quick checklist for anyone buying a home to take you through the journey.

We will outline the 10 crucial steps (as well as negotiation tactics!) to help you with a go-to resource in finding the home of your dreams.

As always, if you have any questions don’t hesitate to contact us here.

Ok, let’s dive in!

Step 1: Determine Your Budget

Your first task is to set your budget.

Begin by calculating how much you can afford to spend on a home, taking into account factors like your down payment, monthly mortgage payments (if you are planning on a mortgage), closing costs, and potential homeowners' association fees.

Sticking to a budget that aligns with your financial comfort is essential. To help with this first step we have a free homebuying / mortgage calculator you can use.

Step 2: Get Pre-Approved for a Mortgage

The next crucial step is securing a mortgage pre-approval from a reputable lender should you be getting a mortgage to purchase the home (over 80% of people in the US still finance a home so most likely we would see this applying).

This not only helps you understand how much you can realistically afford but also positions you as a serious and credible buyer in the eyes of sellers.

Mortgage rates have shot up over the past few years so it’s important to do you due diligence here and think about the return on investment of your home purchase (we talk more about this in the mortgage section of our discussion on good debt vs. bad debt).

There are also lots of ways ultimately to finance your home and a traditional 30 year mortgage may not be right for you if 1) you don’t see yourself living there for a long time or 2) you think interest rates may come down again and you want something more adjustable.

Step 3: Define Your Priorities

With your budget and pre-approval (if needed) in place, it’s time to make a list of your homebuying priorities.

What are your non-negotiables, and what features would be nice to have but aren't deal-breakers?

Consider factors such as location, size, number of bedrooms, proximity to schools, work, and amenities. Talk it over with your significant other or kids if applicable.

Clarity on your priorities will streamline your search and allow you to not get suckered by all the home eye candy (although it doesn’t hurt to look at some pictures!).

Step 4: Find a Real Estate Agent

Buying a home can be complex, and a knowledgeable real estate agent is your invaluable guide through the process.

There is a choice to go it alone (up to you) but in our experience a real estate agent can help you navigate the market, find listings that match your criteria, and, crucially, offer expert negotiation support when the time comes.

In addition, once your offer has been accepted they should help streamline the process to closing (ask them about this prior to hiring them).

When picking the right one, make sure you check out their references and see how many houses they have closed in your price range as it may give you a good indication of how well they do or negotiate.

Step 5: Start Your Home Search

With your real estate agent by your side, you can begin actively exploring homes that meet your criteria.

Attend open houses, schedule viewings, and use online resources to compare properties in the neighborhoods you're interested in.

We have found historically that the buying should not just leave it up to listings that the agent proposes. Do your own scanning of the market and send him or her listings that you want to see.

Step 6: Conduct a Home Inspection

Once you've identified a home that meets your requirements, it's essential to conduct a thorough home inspection (this can come either before or after the initial offer but we would not advise skipping this step even in a hot home market).

Hire a qualified home inspector to assess the property's condition. We would advise you not necessarily to hire the inspector provided by either the sellers agent or the buyers (they are both incentivized to have the deal close and so may look over some items).

Do your own due diligence on whoever they hire or tell your agent that you will find your own.

This step can reveal potential issues that may impact your decision or provide you with valuable information for negotiation.

Step 7: Make an Offer

The negotiation phase begins when you're ready to make an offer on a home.

Work closely with your real estate agent to craft a competitive offer. Be prepared to negotiate terms, and ensure your offer includes contingencies, such as inspection and financing, to protect your interests.

Step 8: Negotiation Tactics

Negotiation is a delicate art, and to ensure you secure the best deal, consider the following tactics:

a. Research the Market: Gain a comprehensive understanding of the current market conditions and recent sales in the area you're interested in to determine a fair and competitive offer.

b. Avoid Lowballing: While negotiation is essential, presenting an unrealistically low offer can often alienate the seller, making productive negotiations challenging.

c. Be Flexible: Flexibility is key. Be open to compromise on various terms, such as closing dates or minor repairs.

d. Request Seller Concessions: If the property requires repairs or you need financial assistance with closing costs, don't hesitate to request seller concessions. This can sweeten the deal and make it more attractive to both parties.

e. Stay Patient: Negotiations can take time. It's essential to be patient and avoid rushing the process or getting overly emotional. You need to be prepared to walk away if needed.

f. Conduct Independent Appraisal: This should ultimately be something you do on the property anyway as you want to see if what you are paying will be worth it (and it can be used as a negotiating tactic). If you are getting a mortgage your bank will do done but that is not always trustworthy (see below).

Step 9: Secure Financing

With your offer accepted and negotiations complete, it's time to work closely with your lender to finalize your mortgage and secure your financing.

Ensure you understand the terms of your loan and that you're comfortable with the agreement and any added costs that they try to throw in there.

Also, be wary of any bank’s home “appraisal.” They may try to lowball the home’s value in order to lend you less.

Step 10: Close the Deal

The final step involves reviewing all the paperwork, signing the necessary documents, and completing the transaction. Your real estate agent should guide you through all of this (so make sure you check the references when hiring one as noted above).

This is the moment you've been working towards. Congratulations, you're now a homeowner!

Final Thoughts…

Navigating the homebuying process can be a complex journey, but with this comprehensive checklist and expert negotiation tactics, you're well-equipped to find and secure your dream home.

Remember to work closely with professionals like real estate agents and lenders (but do your own work too!), stay within your budget, and maintain patience during negotiations.

With careful planning, market awareness, and a touch of flexibility, you'll soon be reaping the rewards of homeownership.

Good luck on your exciting journey to homeownership!

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