6 Things to Consider Before Buying Your First Home 

When you're searching for your first home, the process can seem overwhelming. The thrill of finding the right place and making an offer. The anxiety of the home inspection process. The stress of waiting to see if your loan goes through. These emotions and other factors may result in you paying more for your home than you should.

Our REALTORS® believe that buying a home is a big part of the American dream but you shouldn't pay more than your dream is worth. Our advice to you: Don't Overpay for Your First home. We offer these important tips to help you avoid the overpayment dilemma.

1. Get Your Own Home Appraisal
   In the study, "Under What Circumstances Do First-time Homebuyers Overpay?" researchers listed several reasons why first-time home buyers paid more than repeat buyers for similar homes. The study discussed inexperience, overconfidence, and willingness to pay higher prices, but appraisal error was also a critical factor.
   
   Mortgage companies rely on appraisals as the basis for financing a property. If no one questions an appraisal or negotiates a better price, it simply results in a costlier transaction. A buyer can overcome this issue by hiring their own experienced appraiser who is less subject to error.
   
   
2. Get Pre-Approved
   Pre-approval can be a cure for a willingness to pay too much. Like a grocery budget, it sets parameters for you by establishing a maximum amount you can spend.
   
   Pre-approval can also reduce the chance of bad deals caused by the anxiety of not knowing... if the owner will accept your offer... if your mortgage will go through... if this will be your only chance to buy a home. When you're pre-approved, you know you'll have more than one opportunity to make a deal and get it financed.
   
   
3. Don't Feel Compelled to Share
   As humans, we like to share who we are, what we do... how badly we really want this house. If you share too much during an open house or private home tour, the host (probably the seller's agent) will convey your thoughts to the owner. Your sharing might encourage a seller to stick with a high price despite your attempts to negotiate a less costly deal.
   
   
4. Learn About the Seller
   Information about a seller can help you negotiate. Online home listing sites can tell you how long a home has been on the market or if the price/value has gone up or down. Local real estate sales stats tell you if the seller has bought another home and might need to sell fast. Ask your real estate professional for assistance in getting seller information for a negotiation advantage.
   
   
5. Yes, You Should Negotiate
   A home is not like a bag of chips in the grocery store. Instead of paying the price on the tag, you can make whatever offer you choose. When sellers list their homes they include wiggle room in their pricing strategy. If you don't negotiate, they won't force you.
   
   
6. Hire a Professional
   As a first time home buyer, you might not know the best strategy to get the best price, but your REALTOR® will. When you sign on with a real estate professional, you get the benefit of their experience, knowledge, and negotiation expertise. Take advantage of it if you don't want to pay too much for your American dream.

Whether or not you're a first time home buyer, you shouldn't try to navigate the real estate market alone. Contact us at Griffith Realty when you're thinking about buying or selling a home or if you want more information about the Michigan communities we serve.