Fairfax, Loudoun County Virginia -Residential Real Estate Market Blog

Five Mistakes First time Home Buyer can avoid in Virginia

Being a first time home buyer can be nerve wrecking since you don't know all the stuff that takes to get you your first home especially in past 5 years with the different phase we have seen in the local real estate market place. There are lot of unpleasant stories about how a Realtor took advantage of you as a naive buyer and direct to the path where you would have not chosen if you were given an option in the Virginia Real Estate Market.

1. Choose your Team wisely: Buying your first home involves many levels of details in the transaction and a team of professionals to get the deal closed. Your team includes your Realtor, Loan officer, Home Inspector, Other professional inspectors needed, and title company in Virginia. Speak to your friends and family about their experience & recommendation about each professional. Also if your friend/family had bought a home with a Realtor 5 years ago, check the current credentials of the professional. Visit their website, google their name and interview each of them.

2. Do your Math: Now you have arm yourself with a strong team & ready to make your move. Before you decide do your math. I highly recommend meeting face to face with the loan officer. Talk about various loan programs that are available and what it means to you in monthly mortgage with your life style. It amazes me after my initial buyer counseling many of the first time home buyers have no clue what their mortgage will be or all the loan programs options available to them. Get your estimate closing and sleep over the numbers.

3. Be Realistic: Easy said than done. Everyone wants a perfect dream home. I call the first home as a learning home or stepping stone home rather than a dream home. Instead of going for all cosmetic features, sit down and see if the structure works for your lifestyle. The home may have stainless steel appliances but what about roof and windows. They may cost you more than the appliances in a short or long period. Discuss with your Realtor on estimated long and short term updates the home needs. Also think about your financial capacity to make those updates, can you afford it if they come up in a short period of your home ownership?

4. Ready to make a move: After doing your numbers and previewing homes be prepared to make a reasonable offer and not test the seller. Understand the comps in the area and neighborhood. Craft an offer that is a win win for both the parties. Some seller will take a low ball offers as an insult and rejects the deal. Another example increase your sales price by bit to get the higher closing cost. That will benefit you by reduce the money who need to pull out to buy your home. Discuss in details about the price, contingencies and the time line on the contract before submitting.

5. It's all about Negotiation: You will learn either in the early stage or later in the game, real estate is all about negotiation. From the initial negotiation with your loan office on the interest rate to the sales price or the last minute walk through items that came up. Some of my buyers take it as a frustration and other get extremely nervous about this part of the game.  That's why step one of arming yourself with a team of professional will help you guide through this anxiety but at the end you do have to make choices that some favor you and some may not. Be prepared!!!