7 Tips for First Time Home Buying in Texas
The internet is flooded with tips, tricks, and an overwhelming amount of information related to or inferred from the real estate industry. Even making a simple Google search asking, “how do you qualify to buy a home?” or “what to do when buying a home?” can leave you feeling confused, overwhelmed, or even frustrated. And unfortunately, not everything you read on the internet is true or accurate of your real estate market, and the real estate market as a whole.
Of course, there are many moving pieces when it comes to a real estate transaction, and outlining every detail would require brain-dumping a Buyer Specialist’s, or an agent’s, mind on to this page. However, having a general flow of what to expect over the course of your transaction can and will make all of the difference in your home purchase process. We will leave the rest up to your Buyer Specialist.
The team at Dayna Simmons Real Estate has tailormade a guide that outlines steps to buy a house for those who are buying a home for the first time, those who need a home buying refresher, or those already in the process that want to make sure they stay on track.
1. Choose a brokerage
Nothing will make you more confident in the home buying process than choosing a knowledgeable brokerage, or agency, and knowing their role in making you successful. The real estate industry is saturated with lone agents and brokerages, all offering different services and experiences for their clients. Two types of brokerages, in particular, are Franchise Brokerages and Independent Brokerages.
For example, a Franchise Brokerage is similar to that of Remax, Keller Williams, or Century 21. A licensed agent with their brokers’ license can pay to franchise the company. Independent agents then work under the umbrella of the franchise brokerage to both buy and sell homes. This is where you will see “Team XYZ” or “The XYZ Team.”
On the other hand, there are Independent Brokerages that can be thought of as a small business, where no lone broker can franchise the company without creating some sort of deal or partnership with the direct owner if he or she allows.
Under the umbrella of Independent Brokerages is a diverse array of brokerages that run their businesses completely differently, determined by brokerage size, real estate specialty, or business model. For example, an Independent Team Brokerage, like Dayna Simmons Real Estate, operates under one broker, Dayna Simmons, like all Independent Brokerages. The “Team” aspect comes in when you consider the Dayna Simmons Real Estate business model. Listing Specialists are trained to help home sellers, while Buyer Specialists are trained to help home buyers sell homes. The Marketing Department is responsible for marketing, and the Sales Department is responsible for nurturing client relationships.
Franchise Brokerage: Typically a national brokerage that can be franchised by a broker; This brokerage traditionally supports independent contractors who operate their own businesses under the umbrella of the brokerage.
Independent Brokerage: Typically a local brokerage that specializes in a particular area of real estate or operates in a unique way of practice. This brokerage cannot be franchised unless otherwise negotiated with the owner (broker) of the business.
Independent Team Brokerage: A type of Independent Brokerage; the company operates like that of any other corporate business where each individual specializes in his or her role of expertise and works within a department to achieve overall business goals.
When choosing your brokerage you should consider how you prefer to be represented, how much money you want to walk away with, what work you want to do on your own, and what work you want the brokerage to do for you.
Although it takes a bit of studying up on the different routes you can take, choosing your brokerage is critical because it determines 1) your experience, 2) the product offering you will receive, and 3) how you are advocated for. Choosing a brokerage is similar to choosing your football team — who will advocate for you and have your back? Who will defend you? Who will do their part to help you score? And ultimately, who is going to help you win the game?
Choosing a brokerage with trained Buyer Specialists is critical to your success. They should 1) provide the information you will want as you make informed home-buying decisions and 2) the resources you will need to move forward throughout the process.
Our Buyer's Specialist Department consists of 10 licensed Buyer Specialists who are routinely trained by our founder, Dayna Simmons, to assist clients in purchasing properties. It is critical to note that our buyers' specialists advocate on behalf of the buyer and the buyer alone. They are committed to ensuring that you, the buyer, are informed through the process and advocated for so no document is left unread, no box is left unchecked, and no detail is left unnoticed.
2. Get qualified and get your pre-approval letter
Have you ever browsed homes just for fun? Us too. Most of us do amidst the excitement of searching for a new home. But when it comes to making an offer on a property, you cannot do so without a pre-approval, and further, your pre-approval letter could limit the amount that you are able to spend on a property. This is not an element of the real estate process you will want to catch you off guard.
If you have chosen the real estate brokerage you want to work with, you will then want to get your hands on your pre-approval letter to get a clear picture of what your budget is, which can prevent you from wasting time looking in the wrong places. Additionally, you will be able to make an offer as soon as you find the home you love.
You can get a pre-approval through a bank, credit union, mortgage broker, or through First Financial Bank’s Nancy Zepeda a partner of Dayna Simmons Real Estate.
3. Make a list of non-negotiables
You can see it now — your cozy corner chair, your perfectly set dining room table, all of your clothes neatly organized in that master closet. House hunting is fun, but it also requires not-so-fun decision-making. We recommend starting off your home search with a list of non-negotiables. What is perfect for one person may not be perfect for you. Sitting down to do this with your Buyer Specialist will help you identify your wants versus your needs.
4. Do your research and narrow your search
You have heard it before and we will say it again — location, location, location. Once you have defined the type of property you would like, you will want to scout out the different areas that you could potentially call home. Make note of the school districts, the neighborhoods, and travel times for your commute to work. These are a few factors to consider when you are making a huge investment that will greatly affect your day-to-day life. These can be added to your list of non-negotiables.
5. Consider the costs of moving into your new home
After hiring a brokerage, getting your pre-approval, and making your list of non-negotiables, you are well on your way to finding that perfect home. And if you have not been through the home purchase process before, as is the case for those who are buying a home for the first time, this point is especially applicable.
Once you have provided your pre-approval and list of non-negotiables to your buyer specialist, the home search begins. Your buyer specialist will schedule a buyer consultation with you where you will have the opportunity to share homes that you have found through your own search, and likewise, your buyer specialist will be able to provide homes that suit your list of must-haves.
Your pre-approval and buyer consultation will grant you access to venture into homes and see your selection first-hand.
When you have found the one consider the costs, before making an offer.
These expenses include inspections (which we’ll discuss below), necessary upgrades or improvements for the home, specific insurance that is dependent upon the area the home is in, and the closing costs you will need to bring to the table. Additionally, once moving in, will you be able to pay the mortgage, costs of maintenance, PMI, and escrow? A knowledgeable buyer specialist will be a guide in this process to make you aware of any unchecked boxes, understand what your inspection says about the home, and advocate on your behalf.
6. Do not, we repeat do not skip the home inspection
This tip actually comes once you have made an offer, but it is so important that we want to touch on it here so that you can consider the costs that we have mentioned above.
#1 thing to NOT do when buying a home: skip the home inspection! While this may be an added cost up-front, it can save you money in the long run by catching any red flags.
For example, when doing a home walkthrough, electrical and plumbing issues may fly under your radar, and without a home inspection, you could put in an offer on a home without knowing that your future home is improperly wired causing a fire hazard, or that your upstairs toilet leaks and water is finding its way downstairs. While you are under contract, you have room to negotiate what could be a major cost to you in the future if not found in an inspection before purchasing the home.
7. Make an offer when the timing is right
Making an offer they can not refuse is not as simple as it seems. Waiting too long to make an offer can leave you in the dust. While on the contrary, you also do not want to jump too soon, making an irrational and unwise decision. Searching for a home in a seller's market should motivate you to weigh all of your options in a timely manner. Consult with your Buyer Specialist when you have found your dream home and are ready to move in.
If you are planning to buy a house now or in the future, get connected with our team here. They will ensure your T’s are crossed and your I’s are dotted. And of course, bookmark this tab for quick access in the future.