For most of us, buying a home is the biggest purchase we will ever make in our lives, by a long shot.
Because the average family only moves every 7-10 years, it is challenging to become an expert in something you do very seldomly. With the market changing so rapidly, the learning curve can be steep.
Here are the key tips I share with my clients, to help them make the best possible decision:
Finding your dream home
1. Learn about the market in your area.
Never buy the first house you see, or at least look at a few other homes in the same area before you make an offer. Look at what else you can buy for your money. Ask for recent comparable sales and ask how those sales compare to the property you are considering.
Drive past those recent sales and run a google search on those properties because often the professional photos will still be available online, long after the property has sold. Learning the market is the best way to avoid paying too much or offering too little and missing out (which can be worse).
2. Avoid making an offer on your first visit (if possible).
You are buying a massive asset. This is never the time to rush. Take a night to think it over. Have a 2nd look at the property. Drive past it late at night to check out the area. Do you have a family member who could look at it with you? Sometimes a second pair of eyes can be helpful. They will spot things that your emotional connection to the house will prevent you from seeing. Try out the commute during rush hour to see what it will be like.
Make a considered decision to avoid buyer’s remorse. (Sometimes the market moves too fast to take several days consider–sometimes you can only take as much time as the market will allow.)
3. Buy for sun.
When friends and family are looking to buy, I tell them to focus on buying a sunny home. If a house gets good sun it usually sells quickly and for a good price.
Sunny houses are warmer, stay drier, and are generally considered nicer to live in.
4. Think long term.
If you end up paying a high price for a property you will generally be fine as long as you hold onto it for a while and allow the market time to improve.
In other words, you can buy without having to time the market as long as you own your property long enough to ride out any temporary dips if they do come along.
Remember, whether you are looking for a home to live in or an investment, it’s more important to buy the right property than it is to buy at the right time.