A Brief (very brief) Survival Guide to Purchasing a New Home

Purchasing a home can be an extremely time consuming and daunting process, especially for first time homeowners. There are an overwhelming number of variables that enter into the real estate equation, which can be exceedingly difficult to not only understand, but ensure you are getting the best deal for your time and money. Despite the fact purchasing a home is a subjective process (in that every buyer is different in their wants and needs), there are a number of characteristics common to all prospective buyers.

You SHOULD pick a real estate agent who suits you. This is a judgment that you will have to make when you are first starting the process of purchasing a home. Check out the agent’s profile and career history on the internet, through recommendations by family and friends, or publications like Crain’s and Chicago Magazine.

You SHOULD explore financing options, which includes shopping various mortgage lenders to ensure you get a stable and low interest rate. Additionally, it would be very helpful to get preapproved for a loan, which will give you leverage in negotiations, as well as a clear idea of how much you can afford. Research is extremely important when purchasing a new home.

You SHOULD do as much research as possible. A knowledgeable real estate agent, attorney, and lender can all be instrumental in helping to navigate the purchase, however you are still ultimately responsible for signing the papers. Therefore, help your self by hitting the books (or internet), pounding the pavement, and generally asking a lot of questions.

You SHOULD set your priorities for exactly what you want from your new home. This includes separating wants from needs, since there is a good chance you will have to compromise in some way. Determining the features, amenities, and location you absolutely required will help considerably in sorting through the vast number of homes on the market.

You SHOULD NOT completely pigeon-hole yourself after seeing a property that you like, especially if you have not seen very many properties. That is not to say you should ignore a home you really like just to see a bunch of properties, but it is certainly important to get a real flavor of what is out there.

You SHOULD NOT make unreasonably low offers or overly arduous demands when you have decided on a home. The real estate market on average is leaning toward a buyer’s market, however this does not mean sellers are willing to comply with excessively difficult demands or small offers. This is especially true in Chicago, where the market is relatively strong, and homeowners are unwilling to simply accept any piecemeal offer that might come their way.