If you’re thinking about buying your first home, it’s important to understand the process completely. One simple misunderstanding can cost you for the next 30 years of your life. One resource that really helped me was Eric Tyson’s Home Buying for Dummies. One of the only books I have read, that does a great job of covering the basics of buying a home.
Lets get into some of my advice to first time home buyers…
Tip # 1 – Think Cheap
I’m a dreamer. About a week after moving into our house, I already found a perfect lot down the street to build my dream home.
The first tip I have for the first time home buyer is to remember that your first house isn’t going to be your dream home. Even if you buy a more expensive home, there are going to be things you want to change once you move in.
This is why it’s important to buy on the low-end of your price range.
Tip # 2 – Use the Closing Date to Negotiate
I just happened to fall upon this negotiation tactic when we were in the negotiation phase. Originally, I made the offer in March with a closing date of around June 1st. That offer was declined due to price.
I ended up calling up my landlord and asking him if I could get out of our current lease early. Since he had a daughter that was going to move in after us, he said OK.
After I got the OK to get out of the lease early, I offered a closing date of April 1st with the same price that was rejected earlier. This time, the seller accepted the price because he had to pay two less mortgage payments. Instead of making rent payments for two more months, I was making mortgage payments and stayed within my price range.
Tip # 3 – Go Back At Least 3 Times Before Making an Offer
Don’t just show up to the house one time with a realtor, do a 15 minute walk through, then make an offer.
Go back to the house at least three times before you make an offer and really inspect. The last time you go back should at least be a hour walk through. Open cabinets, turn on lights, see how the sink drains, walk in the grass, etc…
I swear some people spend more time browsing through the sale rack and trying on clothes at then they do looking at the largest purchase of their life.
Tip # 4 – There’s Nothing Wrong With Renting Again
Just because you decided to buy, doesn’t mean you have to buy this year.
Look at houses in places you really want to live. If there is nothing you like in your price range in a location you really want to live, go back to renting.
Advice For Buying Your First Home
This is just some things that I didn’t learn till after I bought my first home. It covers about 1% of what you need to know before buying a home. Like I mentioned previously, make sure you really understand the process.
Unless you decide to collect Lamborghini’s one day, it’s the most expensive purchase you will ever make.
Photo by: California Cthulhu