Tips for First-Time Home Buyers

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Guiding You Every Step of the Way

There are so many first-time buyers in the market right now.  According to the National Association of Realtors, from June 2011 to June 2012, 39% of the transactions came from first-time home buyers.  This is a tremendous amount over the previous year. 

What are the challenges for first-time buyers?  There are many and that is why I compiled a guide to purchasing property to help them.  It covers topics such as mortgages, seller disclosures, contracts of sale, and what you need to purchase a home in New Jersey. 

Five years ago, in the middle of housing bust, buyers had a glut of properties to choose from, so there was little competition and a lot of leverage.  Not so today.  The inventory is down and the buyers are out there, so prices will rise.  It’s all about supply and demand.  

If you’re serious about buying, get preapproved by a reputable mortgage professional.  This is an important first step.  At this time the inventory of homes is so low that homes are only on the market for a short period of time, so you don’t want to back track and hope you get preapproved to buy the property you like.  Instead, once you are preapproved, when a home that you’re interested in hits the market, plan to see it as soon as possible and make an offer that’s at an appropriate price point for the seller.  Remember, if you’re not preapproved, you could miss out on the deal.  First things first!

If you can’t find a property in the town you’re looking in, broaden your search.  You can buy in a nearby community without losing the desired quality of life you want.  Also, be flexible and compromise.  And keep in mind that interest rates are still low, but the rates won’t last forever.  These rates have helped make home-buying more affordable. 

If you’re interested in seeing what homes are on the market, give us a call at 908.347. 7798.  Rest assured, you’ll feel “at home” with our team guiding you every step of the way.  We’d be happy to assist you.

Trends in 2013

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I’ve been doing a lot of homework, looking at what went on in the real estate market in 2012 and also reading about what we can expect in 2013.  According to the real estate blog “Keeping Current Matters,” there are five trends to consider when looking into real estate this year.  Here are the highlights.   

Demand will surge in 2013.  We already saw a surge in December with many buyers and many properties under contract.   There’s reason to think this type of demand will continue.   

Some of the demand will come from the younger generation.  Those in between the ages of 18 and 35 believe in home ownership and, in fact, 43% own their own homes, 72% want to own a home, and 93% who rent plan to buy.  These recent studies may indicate many of these young adults will become homeowners in 2013. 

Prices will increase.  It’s all about supply and demand.  The demand will continue to be strong, but since the supply is shrinking, prices will increase. 

Move-up sellers will return to the marketplace.  These buyers thought negatively about the market, but now that the market is improving and they feel they have enough equity in their home, they’re ready to move off the sidelines and into the home of their dreams.  The timing is right.      

The real estate agent will need to be an expert because that’s what the consumer expects.  Remember, your agent will be your best advocate.  Investing in a home is the biggest purchase you’ll make so it’s important have a professional by your side.  This person can help you land your dream home and avoid home-buyer mistakes.  Your agent will also connect you with the right people (a lender, home inspector, attorney) to make the entire process as smooth as possible.   

It’s that time of the year to make resolutions.  My New Year’s resolution is to be healthy, eat healthy and be the best I can be.  What’s yours?  Happy New Year! 

If you’d like to see the best deals for 2013, contact us today at 908.273.2991.