Christina Warren

Top 5 Mistakes of First Time Home Buyers

Buying your first home can be very exciting and rewarding. However, poor planning and preparation can make it a much more stressful experience than it has to be. The assistance of a professional Realtor® can help make the process of buying your home much easier. I work with many first time home buyers in Gwinnett, Jackson, Barrow & Walton counties in Georgia. I have found that many first time buyers make some common mistakes. Here are the top five mistakes to avoid when buying your first home:

•1. Not Getting Prequalified - I cannot stress how important this first step is. An experienced agent will usually have you prequalify with a lender as the very first step of your home search. Even if you have not chosen an agent to work with yet, you can still get prequalified. Getting prequalified simply starts with a phone call to a lender you can trust. Your agent can recommend a lender, or perhaps your friends or family. Using a lender that has been recommended to you by someone who has actually used their services is always a good idea. Getting prequalified allows you to know how much house you can afford, what your monthly payments will be, current interest rates and what type of loans you can qualify for. This is all VERY important to know BEFORE you begin your home search. Additionally, in our market, you must submit a prequalification letter with your offer. Most Sellers will not even respond to your offer if you do not provide a prequalification letter.

•2. Not Using a Realtor® - In our market, agents can represent either a seller or a buyer. The listing agent represents the seller. The buyer's agent represents the buyer. HOWEVER, the buyer does not pay his/her agent. Instead, it is customary for the Seller to pay the full commission, which is split between both agents. By using an agent to assist with your home search, you can save significant time in your search. Your agent can set up a custom search in the MLS system/s for you that will email you every day with any new listings that meet your criteria.... No more countless hours filtering through properties on the internet! Additionally, an agent can recommend professionals such as lenders, home & pest inspectors, closing attorneys, etc. An experienced agent will be able to handle all negotiations and contracts and basically walk you through the home buying process, step by step. Considering you don't have to pay your buyer's agent, getting an agent to help you buy your first home is really a NO BRAINER!

•3. Not Asking Enough Questions - NO question is dumb! Your agent and your lender should be happy to answer any questions that you have. As professionals that go through the home buying process every day, we can sometimes take our knowledge for granted and forget that you have never done this before. If you have questions through the process, don't be afraid to ask!

•4. Not Thinking About Resale - The average first time home buyer stays in their first home for approximately 5 years. While it is important that you like your first home, you want to also make sure that you buy a home that has features other buyers will like as well. Some factors to consider are neighborhood, school districts, floor plan, age and convenience to shopping. Your agent can provide insight as to whether a home should have good resale potential in your local market.

•5. Not Acting Quickly Enough - Sometimes you have to look at numerous homes before you find one that is right for you. Sometimes, it only takes a few. I have seen too many buyers be too timid to make an offer once they find a home they love and end up losing it because someone else put it under contract first! I am not suggesting that you should jump on the first home you see. But, if you find a home that fits all of your criteria, is the right price and "feels" like home the moment you walk in, you better act on it. In our market, many foreclosures and short sales are priced at bargain prices. Although our market is a Buyer's market, the REALLY good deals will often go under contract within 24-48 hours of being put on the market. So, be ready to act when you find the right home for you!

If you take the necessary steps to avoid these mistakes, your first home buying experience should be a good one!

For more information or for assistance with your real estate needs in the Northeast Metro Atlanta & Athens area, visit my web site at www.pshrealestate.com

Get a free list of homes for sale in Gwinnett, Barrow, Jackson & Walton counties, including bank owned foreclosures!

Search for homes online with our free MLS Power Search!

Has the real estate market stabilized in your area? Get a FREE Market Report for your city or county in the Northeast Metro Atlanta or Athens area!

In a better market, Sellers were able to sell their home even if they did not take care of every little detail before they listed their home for sale. However, Sellers are not that lucky in the current market conditions. In a Buyer's Market, it is absolutely imperative that your home be in pristine condition when you list it for sale. Buyers will look for any little thing they can find wrong to use as a negotiating tool. Additionally, your home must stand out from the rest of the competition in order to get a second look. With so many homes to choose from , Buyers are looking for the "wow" factor. Here are a few things you can do to help your home stand out from the crowd:

· Clean, Clean, Clean! Steam-clean carpet, wax floors and wash windows. Clean blinds, light fixtures and ceiling fans, baseboards, and anyplace else that appears to have collected dust or smudges.

· Remove Clutter. This is incredibly important. A home that is free of clutter appears much more spacious to prospective buyers. Don't forget areas such as the garage, attic, kitchen counters, closets, storage buildings, cupboards, etc.

· Use Natural Light. Keep curtains and blinds open. Warm sunlight can drastically affect the warmth and cheeriness of a room.

· Spruce Up Landscaping. The first view prospective buyers have of your home is from the outside. Make sure that the lawn is cut and edged. Trim back all overgrown shrubbery. Lay fresh mulch or straw in all flowerbeds. Remove weeds and debris. If your mailbox has seen its better days, give it a fresh coat of paint and some shiny new street numbers. Add a splash of color to your beds by planting some flowers that bloom like daisies, tulips, or pansies.

· Paint. Some areas may need only touch ups, especially inside. However, if you have any bold or outdated colors, it is best to paint over them in a neutral color. If the exterior of your home has any peeling paint or extreme fading, add a fresh coat of paint. This will drastically improve the curb appeal of your home. After all, you only have one shot at making a first impression!

· Rent a Pressure Washer. We know this is not the most fun thing to do on a Saturday afternoon. However, this is relatively inexpensive, and it can take years of dirt buildup and wear and tear off of driveways and walkways. The difference it makes is well worth the effort!

· Make Needed Repairs. Oil squeaky hinges, tighten loose doorknobs, repair leaky faucets. Straighten gutters, mailboxes, fence posts, etc. It is important that your home appears well maintained and in good condition to prospective buyers.

· Aromatize! Put out potpourri, scented candles, scented soap, or anything else that will give your home a welcoming and soothing fragrance.

· Accent Your Home's Best Feature. Whether it be a unique fireplace, a peaceful balcony, or an enormous closet, use whatever method available to draw attention to that feature so that it is easily visible to prospective buyers.

· Ask your Realtor®!

For more information or for assistance with your real estate needs in the Northeast Metro Atlanta area, visit my web site at www.pshrealestate.com

Get a free list of homes for sale in your area, including bank owned foreclosures!

Search for homes online with our free MLS Power Search!

Has the real estate market stabilized in your area? Get a FREE Market Report for your city or county in the Northeast Metro Atlanta or Athens area!

Fannie Mae is now offering Buyer and Selling Agent incentives through the end of the year. The details of the incentives can be viewed at http://www.fanniemae.com/homepath/incentive/index.jhtml .

Buyers can receive up to 3.5% towards closing costs and Selling Agents can receive a $1,500 selling bonus on all contracts that are:

•· Written after September 23, 2010.

•· Close on or before December 31, 2010 AND within 60 days after initial offer date.

•· Primary residence purchases. No incentives or bonuses will be paid on investor purchases.

Be sure to request the incentives and selling bonus at the time of the initial offer.

To sweeten the deal, it appears than Fannie Mae is also making improvements to many of their foreclosed properties. I have sold three Fannie Mae properties recently, all of which had new carpet, new paint and new appliances. This makes Fannie Mae properties a great choice for many Buyers.

For more information or for assistance with your real estate needs in the Northeast Metro Atlanta area, visit my web site at www.pshrealestate.com

Get a free list of homes for sale in your area, including bank owned foreclosures!

Search for homes online with our free MLS Power Search!

Has the real estate market stabilized in your area? Get a FREE Market Report for your city or county in the Northeast Metro Atlanta or Athens area!

Georgia is not included in the more than twenty states where many lenders have been required to halt foreclosures. Although Bank of America has voluntarily halted foreclosures in all states temporarily, no lenders are required to halt foreclosures in the state of Georgia. This is because Georgia is a non judicial foreclosure state.

Because Bank of America is one of the nation's largest lenders, it does hold a significant percentage of the foreclosures in the state of Georgia. Therefore, if they halt foreclosures for an extended period of time, it could have an effect on the Georgia real estate market. However, as long as they remain the only lender that is halting foreclosures in our state, our market should not be significantly impacted. We may have a slightly reduced inventory until Bank of America resumes foreclosures, but ultimately our market will remain largely unaffected.

So, if Georgia is not included, what does this mean for our market?

We should still see an increase in housing inventory as many more foreclosures are listed on the market in the coming months. Most experts agree that this will cause home prices to decline, although how much of a decline we can expect is unknown at this time. Hmmmmmmmm..... more homes to choose from, lower prices and insanely low interest rates? Sounds like an EXCELLENT time to buy, doesn't it?

Whether you are buying your first home or an investment property, don't miss out on this opportunity! The current real estate market conditions have made home ownership more affordable than ever. I have helped numerous first time home buyers to purchase their first home. Not only were they ecstatic to find that the goal of owning a home was no longer out of reach, but they couldn't believe their house payment was less than the rent they were previously paying! I have also assisted several clients in purchasing their first investment properties. They can't believe they had not gotten rental properties before now and are ready to purchase additional properties. You, too, can take advantage of the current market conditions to build personal wealth for you and your family.

If you are in Gwinnett, Barrow, Walton, Jackson, Clarke or Oconee counties in Georgia, contact me directly to get more information on how you can take advantage of the current market conditions. If you are in another area, you can still contact me and I will get you in touch with an experienced agent in your area.

For more information or for assistance with your real estate needs in the Northeast Metro Atlanta area, visit my web site at www.pshrealestate.com

Get a free list of homes for sale in your area, including bank owned foreclosures!

Search for homes online with our free MLS Power Search!

Has the real estate market stabilized in your area? Get a FREE Market Report for your city or county in the Northeast Metro Atlanta or Athens area!