So far my reality show is in full swing. Click this link to find the first 3 rules to home buying. Remember to check your credit, get pre-approved, and save for your down payment. First 3 Rules
Once I complete the first 3 rules, I set out to search for my house of dreams. Here are the steps to make sure your ready to find your dream house:
1. Practice Before The Real Thing - This is the first step in your reality check as a home buyer. Before waisting your time and stressing your agent out, practice finding the home of your dreams on your own and see what your pre-approved amount gets you in many different neighborhoods. The web is a great tool for pr acting with specialty sites and sites that tap into all Multiple Listing Service (MLS) listed homes. For Chicago, here are the sites I practiced with:
Dreamtown.com
Trulia.com
Zillow.com
Realtor.com ***
chicagotribune.com (Real Estate section)
Redfin.com ***
*** These sites helped me get the most accurate information
2. Narrow Your Search - Its time to narrow your search by more than just price. Choose the following: Preferred Locations, Total Price, Must Have Features. Here is mine:
Preferred Locations -
Here is a listing of all Chicago neighborhoods: http://www.chicagohome.com/neighborhoodMasterList.cfm
Most of the North Side: (Irving Park, Avondale, Roscoe Village, Logan Square, Bucktown, Wicker Park, St. Ben’s, North Center, Rogers Park, Lakeview, Lincoln Square, Albany Park, Lincoln Park, Uptown, Edgewater, Portage Park, Ravenswood)
South Side (Hyde Park, Kenwood, UIC)
Total Price - Know two key things about the price: 1. List Price, 2. Monthly Payment Price
List Price - The total amount you want to spend. This will impact your down payment.
Monthly Payment Price - Also estimate your total monthly budget which should include the mortgage payments, taxes, association fees...and be aware of insurance costs.
Must Have Options
Property Types: Primary - Duplex, Townhome, Single Family Home
Square Feet - At least 1600
Bed Rooms - At least 2
Bathrooms - At least 2
Balcony/patio/deck
Closet space
Washer/Dryer in unit
Central air or separate unit in each room
High ceilings
Intercom/Security/Buzzer Door Entrance or Locked Fence
Good parking situation
Access to Transportation
Grocery/food/stores
Hardwood
Kitchen - Stainless Steel Package, Update Cabinets
Bathroom - Updated Features
3. Get Professional Help, Choose an Agent
My personal opinion is that if you are well informed your agent is helpful but not vital. Don't be afraid to find your home on your own and then just rely on the agent to show you the property (and then help you close the deal). I would explore a growing breed of agencies that allow you to use a powerful site to 'Narrow Your Search' and choose the properties that meet your criteria...on your own. The catch for you doing all that work is the agency will split the COMMISSION with you. Check out sites in Chicago like Redfin.com and ZipRealty.com. I learned through my experience that a traditional agent will do the exact same thing, however, they put in your 'Narrow Your Search' criteria for you and then you choose the properties that look interesting.
I used Redfin and enjoyed their service. However, I went with a traditional agent because Redfin doesn't focus on short sales...a type of distressed property I was leaning towards. Look for agent that lives works and surrounds in the city for at least 5 years. They have seen highs and lows in the economy.
If you choose a traditional agent, create a questionnaire to grill your potential candidates (yes, they are working for you):
~ Is this your full-time job?
~ Are you familiar with distressed properties (foreclosures & short sales)?
~ Where were you last five deals?
~ Who else will be working with me?
~ Will you show me ALL properties available for sale?
~ When am I committed to working with you?
~ Has a client ever filed a complaint?
~ How are you paid?
4. Tour The Homes - Schedule roughly 4-6 homes in a session. This is a good amount that will allow you to remember each property. I recommend taking a camera with you when touring homes. This was the best tool because I remembered so much more.
No comments:
Post a Comment