Top 10 Things to Know Before Looking:

1. Will you need to sell first?  
   
   There are a number of factors that will determine whether you will need to sell before you can buy.  The amount of equity in your current home, your earnings to debt ratios, and the price range of your next home are just a few of the key points.  If you find yourself in a position to buy first and sell later, you must be aware of how long it may take to sell the first one.  Even in a strong market, past performance does not guarantee future results.
   
   The easy answer is waiting to look until you have your home under contract.  Unfortunately this scenario could cause you to make a snap buying decision without investing the time to ensure you are where you want to be.  Buyers should always take the time to not only research the home but also research the surroundings as well.  I encourage clients to go back to the home they are interested in at 5:30pm when traffic and activity in the area will change.  Also check on the weekends when the neighbors are out in their yards enjoying their properties.  Make sure you won't have any surprises.
   
   In summary, get your home on the market and then balance out your free time.  Half of your time should be spent making your current listing as good as it can be.  The other half of your time should be spent researching communities and not necessarily any specific homes.  General floorplans, construction materials, etc… should be the only points you focus on.
   
   
2. What is your price range and have you been pre-qualified?
   
   Becoming pre-approved for a loan is critical.  Not only critical for yourself but critical to the sellers of a home that you wish to buy.  Keep in mind there is a difference between becoming pre-approved and pre-qualified.  Pre-approval is a basic look at your income in relationship to your monthly debts.  This pre-approval process is quick and easy and will give you an idea of what price range you can afford.  Becoming pre-qualified is a much more lengthy process where your lender will look at your full credit history as well as your income to debt ratios.  During this step, your lender will pull your credit score so it is important that you are working with a lender that you plan to utilize throughout the entire purchase process.
   
   Generally, clients learn about their price range and then only look within those parameters.  I always advise buyers, esp. during slow market times, to look slightly above the top of their range.  Most sellers expect to reduce their list price either due to an incoming offer or due to no activity on the home.  The only challenge to this theory happens when you fall in love with something that you “can't” have.  9 times out of 10 a more expensive home will have features that a cheaper home will not.
   
   
3. How much are you prepared to put down on the home?
   
   How much you are willing to put down on the home is best discussed with your lender and possibly even a tax professional.  This decision will be based on a number of factors and what you hope to gain from the home.  The easy answer is aim for 20% down.  This has been the standard for years and still holds true today.  However, in today's environment, few buyers have the 20% available to them.  Ultimately remember to avoid the term PMI (Private Mortgage Insurance) with whatever plan you choose.  Avoiding these unnecessary fees can be accomplished through plans such as 80/20's and 80/10/10's.  The numbers stand for how the loan will be split up.  An 80/20 means that you will have 2 loans, one for 80% of the price and one for 20% of the price.  Plans like these are extremely common. 
   
   
4. Are schools an issue for you?
   
   I have 2 children and a wife that teaches 1 st grade.  Needless to say, we are very in touch with the school system.  Before we moved into our current home, my wife picked the school first.  Then she told me the area in which we could buy!  I suggest this theory to any buyer with children who will be utilizing public schools.  Even if you don't have children you may still want to consider the schools.  In our area, resale values are directly influenced by what school district they are a part of.  So even if you don't have school aged children, keep the schools in mind when you don't plan to stay in the home for an extended period of time.
   
   
5. Are commute times an issue for you?
   
   7 out of every 10 buyers I work with have a full time job.  Full time jobs mean commute times and most will happen during peak travel periods.  When you find the home of your dreams, get up early and drive from the home to work to see what you will encounter.  Main roads that typically remain clear can change if it brings you by a school zone or across a bridge.  Make the effort to inform yourself before you buy.
   
   
6. How much does size matter?
   
   Try to accurately determine how large of a home you truly need.  To me, the most important areas are the number of bedrooms and the amount of free space.  Free space would be a finished room over the garage, an office area, a sunroom, etc…  Most people just look for a 3br 2ba.  This may cover your sleeping arrangements, but what happens when you want an area to relax in, create an office or a workout area, etc…  I see plenty of buyers get into a home only to realize 2 years later they have outgrown it.
   
   Square footages are important but should not be the final factor.  A 2,000 sq foot traditional home will feel very different than a 2,000 sq ft contemporary.  Keep your mind open and explore them all.  What may not work well for someone else may be just what you have been looking for.  After visiting a few homes, you will quickly narrow down what you want.
   
   
7. Are you looking for a recently built home?
   
   The age of a home is a critical part of the buying process.  Personally I like a home that is just a few years old.  I like to think of it as the “sweet spot”.  The sweet spot happens when you have all of the benefits of a new home such as maintenance free and up to date styles yet someone else has already endured the challenges of a new home.  Challenges such as getting the landscaping in order, purchasing and installing all of the window treatments, closet organizers, etc…  Not to mention new communities can have excessive building noise, dirt and unsightly debris, and unfinished amenities all of which detract you from enjoying your new purchase.
   
   
8. What sized lot would be ideal for you?
   
   We all will have different needs in this category.  Animals, children, maintenance and privacy will make up the largest points to consider.  You will know very quickly what will work for you and what will not.  I would rather find a backyard that is already established with neighbors all around me.  Backing up to woods is wonderful but will it last?  Today's trees could become tomorrow's next new development, residential or otherwise. 
   
   
9. Are you looking for a kid-friendly area or more of a retirement community?
   
   Personally I think kids should grow up around other kids their age.  The ultimate community for your needs may not be the right community for them.  Participation in play dates, riding bikes to a friends house, etc… all become easier, more frequent and safer when they don't need to go far.  If the closest child requires riding in a car to get there, the play dates ultimately will not be as frequent as they would have been. Consequently, children can become a distraction to you if you are looking for peace and quiet.  Retirement neighborhoods are great at pulling together people with similar interests that are looking for the same quality of life.  Communities that provide sidewalks, amenities such as pools and tennis, and handling the yard maintenance for you can be great places to live and enjoy.
   
   
10. Custom home or Repeating themes?
    
    Our area will provide you with plenty of choices of neighborhoods for either of these programs.  Most buyers will prefer a custom area where the homes are all different.  As you ride down the roads, you never see the same thing twice.  When done properly however, repeating themed neighborhoods can be great.  Chances are if you are looking in these areas, then you already like the style of homes that have been built.  Homeowners express their individuality through plants, landscaping and accessories.  One of the best things about these areas is you will never need to worry about someone building something “out of character” with the surroundings.  Most of these neighborhoods also provide landscaping maintenance so your area will always look well cared for.