Buying real estate can feel like a daunting task. A fast-paced market and endless considerations to making the right purchase for you make buying feel overwhelming. We are here to teach you some smart things to consider when buying a house. Whether you’re a first-time homebuyer, or a seasoned veteran, it’s always important to know what questions to ask, and what things to remember before you take the plunge at the closing table.
Finding the right real estate agent for you
According the National Association of Realtors, 88% of buyers recently purchased their home through a real estate agent or broker, and for good reason. Real estate agents are trained professionals to help you understand contract nuances, negotiate the best price, and help make you feel secure in your buying decision.
Selecting the right agent for you can feel tricky with potentially hundreds of agents in your area available, all hungry for your business. You should decide what qualities are most important to you, leverage technology and transactional history, and ask friends and family for referrals.
Consider realtor commission
Real estate agents get paid based on commission during the transaction. Commissions are typically calculated based on a percentage of the sale price. The average real estate agent commission rate in the United States is 5.8%, according to HomeLight’s transactional data. Note that commission rates vary from agent to agent, but they tend to sit between 5% and 6% of the home sale price.
Commission is typically paid for by the seller of the transaction, and then that percentage is split between the agents involved and their brokerages. It’s smart to consider commission rates when buying a home, because ultimately it can become a tipping factor for the seller of your dream property.
Financials to consider before buying a house:
- Think about your debt-to-income ratio which determines how much you can become pre-qualified for, and if buying is a smart financial decision for you
- Consider your personal job security to ensure your loan clears for the closing table, and to give yourself peace-of-mind before committing to a 30-year mortgage
- Decide on what down payment makes the most sense for you and remember you will need a lump sum of cash to put down in order to buy a house
- Learn about local market indicators to know if now is the best time for you to buy
- consider inventory, price range in the location you want, and interest rates
Features to think about before buying a property
Aside from the financial factors of buying a home, there are also a slew of features to consider before you decide to take the plunge into homeownership:
- Location, school districts, and proximity to your employer
- Size of the property and if it’s manageable for you and meets your needs
- Layout and home features
- Age of the home
- Condition of the property
