The other day I met with a first time homebuyer, who had decided that they were going to purchase their first home.  They had done a lot of research on the internet, on lots of different sites – sites like Trulia, company websites, Realtor.org, individual agent websites.  There was a lot of information out there for them to absorb and so they had one simple question for me:  “What is the best advice you can give us, since we are first time homebuyers”.   So I thought about it for a minute or two and then I told them that there were several things I would recommend to them:

(1)      Be realistic in what you are looking for in a home.  Keep in mind that this is your first home, not your last home and the reality is that in five to seven years you will most likely move.  So find a home and a neighborhood that you think you will enjoy living in for the next 5 to 7 years!

(2)     Know what payment you are comfortable making.  In this market, many buyers are still very concerned about the future of the economy as well as their jobs.  They also express a lot of concern that the housing prices will continue to decline next year and they don’t want to be caught into a situation where the price they paid for the house today will be more than the house is worth next year.  Given the housing market we are currently in, this is a legitimate concern.  My suggestion to the buyers is that the housing market will turn around, but no one really knows when.  You should buy a house  that you can be comfortable  in and with a payment that you can live with for the time it will take for the market to turn around. 

(3)     Assemble a team of professionals around you that you can trust to help you with your purchase.  For most people this is a pretty major investment, but for first time homebuyers it is not only a major investment but also a very overwhelming process.  You want to make sure that you have a Realtor working for you that can guide you through the maze and answer any and all of your questions and not just trying to get you to buy the first home you see in order to get a commission;  that you have a Lender that you feel is giving you the best loan product out there and is willing to take the time to explain the lending process; that you have a Home Inspector that will be thorough and will tell you everything you need to know about the condition of the home you will be buying; that you have a Settlement Agent who will take the time to explain the documents you are signing & will answer any questions you may have about those documents!

(4)     Educate yourself about the houses & neighborhoods.  Your Realtor should be able to set up a Personal HomeFinder Link for you through MLS, showing you homes and neighborhoods that meet your criteria.  If you are not quite ready to buy a home today, then take the time to begin to drive through the neighborhoods and visit open houses so that you can become educated about what prices are in these neighborhoods & what your money will buy in different areas of town. 

(5)     Finally, relax and enjoy the process!  Hopefully, you have assembled a good team of Professionals to assist you and guide you!  Things can happen, but your professional should be able to help smooth out any problems that happen along the way!  Don’t ever feel pressured into buying a home – remember that you will know the home that is for you when you walk into it!  And when you close and get the key into your new home, it will be one of the happiest days of your life! 

Remember the housing market will turn around – it may not be in 2009 and it may be slow going in 2010, but real estate has always proven to be a great investment for the long haul!  Don’t buy a house today thinking that you will make a fortune on it tomorrow!  A home is an investment, but it is also an expression of ourselves and a place to put down roots.  When you go from an apartment with totally white walls to a house you can decorate in your own style, you will be happy you bought your home!  And make sure that it is a home that you can be happy in for the next several years – remember, you will be writing that check out to the mortgage company each month!  And if it is not a home that you can see yourself living in for the next several years, then there is no giving notice and moving!  So make sure this is the home for you and your family!

There is a lot of advice out there on the internet – if you have questions about anything you see, don’t hesitate to let me know!  There is no question you should be uncomfortable asking!  Have a nice day!