Back to Basics: The First Steps to Homeownership
Believe or not, not everyone knows exactly where to start when it comes to buying a home. I know, I know, this seems like a big “duh”, but as Realtors®, we often take for granted our knowledge and sometimes assume that buyers know exactly what they need to do to buy a home. But the reality is, buying a home is a huge decision and a complicated process, and many buyers have no idea what they need to do or where they need to start to achieve the American dream. So where do they start?
Well, the first thing buyers tend to do before doing anything else is contacting a Realtor® either by calling a local office asking for an agent or seeking one as a referral.
“I’d like one of your finest homes, please”.
If only it were that simple. Typically, agents will meet with a potential buyer for a consultation. This is a great opportunity to not only inform them where they need to start, but to explain to them the whole home buying process from start to finish to help give them a sense of what to expect throughout.
So, before buyers even look at a home, they need to know what they can afford. You don’t want to be showing them million-dollar homes if they can’t afford it. And unless a buyer has enough cash lying around to outright purchase a home, they will most likely need to obtain a loan.
Que the lender.
Getting your financing in order is really the first and most important step before embarking on a home buying journey. But even this step can be confusing. Do buyers just walk into a bank and say, “May I have some money, please?” They could I suppose, but this is a good opportunity to coach them and walk them through this crucial step and explain to them what they can expect when they work with a lender. Inform them that if they have a financial institution that they are already comfortable with, they should consider starting there. Or better yet, if you know a lender you trust and have a great rapport with, refer them to that particular lender. Whomever they decide to work with, it’s always a good idea to use a local lender, as they will have a better understanding of the local market. It also makes communication easier when compared to an out of state lender in a different time zone.
Once they get in touch with a lender and provide them all of the necessary documents and information, they’ll know their price range and what they can afford. With this, the fun begins. Now you can determine what type of home to look for and where to look and start showing them homes. That’s really the first major step.
I know this all sounds like a no brainer, but for new agents in particular, it might not seem so obvious. It’s easy to forget that we aren’t just helping buyers simply purchasing a home, but also that we’re emotional support for them too in some ways. Our job is to make the home buying process as smooth and as stress free as possible. When a buyer has a bad experience buying a home, even if it isn’t because of anything you did or didn’t do, they will associate you with that bad experience. So guiding them through to that first step is crucial. If you show them a good first impression, then they’ll have confidence in you moving forward.
Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.
