Whether you’re a first-time homebuyer or a seasoned pro, some telltale signs tell you when it’s the right time to make an offer on a house. The market is constantly shifting and changing, so staying current on the latest trends and data is essential. If you’re unsure of when to pull the trigger, we put some tips together to help you out.

We understand, house hunting can be overwhelming.

As realtors, we understand that you are preparing to make a substantial financial and emotional investment. As a future homeowner, you take great care to find a place that is “just right” for you and your family. You can even get a little addicted to touring houses, always convinced the perfect home is just about to hit the market. Sometimes the inability to pull the trigger on the house can cause serious shopper’s remorse. You could miss out on a home that, in retrospect, was ideal.

So how do you know a home is “the one”?

Here are some practical ways to check your buying temperature and know when it’s time to make an offer:

1. The home fundamentally meets your needs. There’s plenty of compromise in home hunting, so take note when you find one with the basics covered.

2. You would consider renovating for those luxurious little extras. Maybe the home is missing that pool you’ve always wanted or is missing a detached workshop/garage space. These factors help recognize the home’s potential when you think you would be up to tackling a project to make it perfect.

3. You’re in love with the kitchen. Studies show that most of our waking hours are connected to or using the kitchen. If you’re in love with the kitchen but think the master bedroom is a little small, consider where you would be spending most of your time. Careful not to pass on the home when it could be the one.

4.The bathroom feels comfortable to you. Many times, other people’s bathrooms will give you the creeps. If you feel good about the bathroom, it’s a healthy sign.

5. You start to see your possessions in the house. If you’re thinking, “ah yes, the flatscreen could go on that wall,” and “wow, my bed would fit perfectly in this suite,” then you’re starting to imagine the house as your own.

6. You picture where you are going to place your Christmas tree. Many professionals claim that when you visualize where your tree will be placed, you may be in the ‘right’ home.

7. You become possessive about the house and defend every flaw you see. Maybe your agent points out a flaw and says, “There is a stain in the kitchen sink,” and you become defensive to them for saying something so mean about this house. If you see the flaws and decide that defects do not matter, you’re falling in love.

8. The idea of someone else buying the home gives you a pit in your stomach. Pay attention if you’re “sleeping on the decision,” and the idea that a home is no longer an option makes you anxious. It could be time to offer.

If you’re considering making an offer on a house, there are several key factors to keep in mind.

1. Location: The location of the property is crucial. You’ll want to consider things like the surrounding neighborhood, public transportation, and schools in the area.

2. Size: The size of the property is another vital factor to consider. You’ll need to decide how much space you need and what kind of layout you’re looking for.

3. Condition: The property’s condition is also an important consideration. You’ll want to inspect the property thoroughly before making an offer to ensure no significant repairs are needed.

4. Price: Of course, the property’s price is crucial in deciding whether to make an offer. You’ll need to consider your budget and what you’re comfortable spending on a home.

5. Financing: Another vital factor to consider is financing. You’ll want to get pre-approved for a mortgage and compare interest rates before making an offer on a property.

6. Warranties and inspections: You’ll also want to ensure that warranties or inspections are in place before making an offer. These components can give you peace of mind knowing that the property is in good condition.

7. Title insurance: Another essential factor to consider is title insurance. Title insurance will protect you if there are any property title problems.

8. Homeowner’s Insurance: Another factor to consider is homeowner’s Insurance. Homeowner’s Insurance will protect your investment in case of any damage to the property.

9. Closing costs: You’ll also need to budget for closing costs, which can include things like loan origination fees, title insurance, and appraisal fees.

10. Timing: Finally, you’ll need to consider the timing of your offer. If your offer is accepted, you’ll want to ensure you’re prepared to move forward with the purchase quickly.

We Can Help!

So, what are the signs that it’s time to put an offer in on a house? Well, there is no definitive answer, as each situation is unique. However, if you have been watching a property for sale and feel ready to make an offer, give me a call. I would be happy to help you through the process from start to finish! (928) 916-1921

Basics for Buying Your First Home

When buying your first home, you need to know several things to qualify and make it a smooth process. We have compiled a list of questions and answers to help you with the home buying process.

1. What kind of credit score do I need to have?

One of the most important things is your credit score. You will need to know what is considered a good credit score and how to improve your credit score if necessary. Generally, 630 or above is what you’ll want to have. The better your score, the better the terms will be on your loan. Some lenders may give you wiggle room on this, but it depends on the circumstances. A loan professional can help you navigate this as you go.

2. What’s the first step to home buying?

Another critical factor is how much you can afford to spend on a home. Be sure to get pre-approved for a mortgage loan to know how much you can borrow. Once you know how much you can afford, start looking for homes in your price range. To find this out, you will need to get pre-approved for a mortgage. Don’t shop for a home until you know what you can afford. Remember to factor in the cost of maintenance and repairs when budgeting for your new home. There’s no use in falling in love with a $300,000 home in your dream neighborhood if the banks will only write you a loan of $150,000. 

3. How much down payment is required?

Some loans will let you in for as low as 3% – 5% of the home’s value, but I would consider 5% the floor. The higher the down payment, the better, especially if your credit isn’t optimal. Working with a loan officer will help.

Now, if you can put 20% down, there are benefits. You will have a smaller monthly mortgage payment and a lower interest rate and will not need private mortgage insurance. Plus, you will need to prepare for closing costs and fees associated with buying a home. These can add up, so factor them into your budget.

There are a few key things to remember when saving for a down payment to buy a home. 

• First, start early and be patient. It takes most people several years to save up enough money for a down payment, so don’t expect to come up with the funds overnight.
• Where are you spending your money? Find out where your money goes. Track each expenditure, even your cash, to see where you are spending your money and reveal where you can trim to save toward a down payment. 
• Setup a separate savings account. Have a different account with a “hands-off” attitude. Don’t let your dream home money mingle with your regular checking or savings account.
• Pretend you already have a house payment. Once you determine the approximate amount of a new house payment, start making that payment now. Instead of paying a mortgage, pay your savings account. 

4. How much do I have to pay my real estate agent?

 As a buyer, you don’t have to pay your real estate agent. The seller is responsible for listing fees, and your agent will receive a portion of those fees for helping with the transaction. Don’t worry, this cost is usually factored into the price of the home.

5. Why should I use a real estate agent?

Real estate agents can be beneficial when purchasing a home, especially for first-time buyers. An experienced agent will know the ins and outs of the home buying process and can offer guidance and advice. In addition, a good agent will be familiar with the local market and help negotiate the best possible price for your new home. Using an agent can help make the home buying process much less stressful and ensure that you end up with the home of your dreams.

6. How long does it take to buy a house?

Buying a house can take anywhere from a few weeks to several months, depending on several factors. The first step is usually finding the right property, which can take some time if you’re not working with a real estate agent. Once you’ve found a property you’re interested in, you’ll need to get pre-approved for a mortgage, which can take a few days to a week. Once you have your financing in place, you’ll need to make an offer on the property, which the seller may or may not accept. If your offer is accepted, you’ll need to go through the process of getting a home inspection and appraisal, which can take another week or two. Finally, you’ll need to close on the property, which usually takes place 30-60 days after your offer is accepted. So, as you can see, buying a house can take quite some time. However, working with an experienced real estate agent can help to speed up the process and make it a little less stressful. 

Naturally, there’s more to buying a home, but this covers the essential introduction to the process. As your agent, I will walk you through the rest, guiding you along the way. When you’re ready to make a move, reach out to me at (928) 916-1921.

Understanding an HOA

If you’re a first-time buyer confused about what a Home Owners Association is (or does), you need to ask the right questions before considering buying. An HOA’s purpose is to protect owners’ quality of life and property values within a neighborhood or shared building. Although, how they make this happen can vary widely. Typically, when you purchase a residence subject to an HOA, you’ll be required to pay monthly dues, which often contribute to major repairs or maintenance or the upkeep of common/shared resources.

HOAs are common in many residential areas and can be either helpful or problematic depending on the neighborhood and the people involved. Some HOAs are very strict about rules and regulations, while others are more relaxed.

Some people feel that HOAs are a necessary evil, as they help to keep the neighborhood looking nice and can provide a sense of community. However, HOAs can also be seen as intrusive and overbearing, as they can dictate what you can and cannot do with your property.

Whether or not an HOA is a good thing depends on the specific community and the people involved. If you are considering buying a home in an area with an HOA, it is essential to do your research and talk to people who have experience with the association to get a sense of the management.

The covenants, conditions, and restrictions (CC&Rs) detail the HOA’s rules. These might have reasonable regulations, such as keeping junk cars out of the front lawn, or they might extend to what color you can paint your garage door. To understand how strict an HOA is (or isn’t), you’ll want to understand the details of its CC&Rs before you consider buying.

We have compiled a resource for our clients so you can easily access the CC&Rs of neighborhoods in the Prescott area. Go to ThePremeireList.com to find downloadable documents for most of the Prescott Quad Cities subdivisions.

Here are some questions you’ll want to ask yourself and the HOA before you make an offer:

1. How comfortable am I sharing decision-making about my own home? Yes, you own your property, but if you agree to abide by the CC&Rs of an HOA, you’ll need to be willing to abide by its rules.

2. How much are the HOA fees, and how much have they increased over time? Current HOA fees and anticipated increases can seriously impact your budget. Sometimes HOAs can even require residents to chip in for major repairs or upgrades beyond HOA fees.

3. What are all of the CC&Rs? Get a copy of the CC&Rs and make sure you understand the rules. Furthermore, see if you attend an HOA board meeting or obtain notes from past meetings. Observing will help you understand the HOA’s temperament and the type of past conflicts residents have had with the board.

4. Is the home (or unit) you’re considering in compliance with the HOA’s CC&Rs? If you’re considering an offer on a problematic property, understand a real hassle may follow.

A great way to learn about the association’s history is by asking the neighbors around your desired home. Walk around the community and talk to a few residents. Are they happy? Have the neighbors had problems with the HOA? Does the HOA keep a well-run community?

If you like the idea of a group of neighbors who set community or building standards, a residence with an HOA may be for you. But if not, don’t worry, many other homes are out there! Contact me today, Trent Beaver, 928-916-1921.

Calculating Your Down Payment

Getting your finances in order is vital when preparing to purchase a home.  If you’re looking to purchase a home, one of the first things you’ll need to consider is how much of a down payment you’ll need to make.  Depending on the type of loan you’re applying for, the size of your down payment could vary.

Generally speaking, most conventional loans will require at least 5% down payment.  Some government-backed loans, like FHA or VA loans, may allow for a down payment as low as 3.5%.  And if you’re eligible for a USDA loan, your down payment could be as low as 0%.

Of course, the size of your down payment isn’t the only factor that will affect your home buying experience.  You’ll also need to consider your credit score and the current market conditions.

So, how much down payment do you need to buy a home?  As we indicated above, the answer depends on a variety of factors, but in most cases, you’ll need at least 5%.  Keep in mind, though, that the size of your down payment also affects the competitiveness of your offer.

A high down payment shows the seller that you’re serious about buying the home.  It also demonstrates that you have the financial resources to follow through on the purchase.  This advantage can be significant in a competitive market, where the seller may have to choose from several offers.

A high down payment also gives you more leverage in negotiations.  If the seller knows that you’re willing and able to put more money down, they may be more likely to accept your offer – even if it’s not the highest one.

So, if you have the means, a high down payment is always the best way to go when buying a home.  It will make your offer more attractive to the seller, lower the amount you will need to borrow, and give you more negotiating power.  Just be sure that you have a solid plan in place for how you’ll finance the rest of the purchase.

If you’re interested in learning more about low-down payment options, there are several places to go.  There are programs for qualified buyers with down payments as low as 3.5%.  There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you need to do your homework.  If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com.  Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Give me a call, I can point you in the right direction!  Trent Beaver (928) 916-1921