The 5Ps Of Buying A House

Dated: 10/27/2017

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Buying a house can be an overwhelming and confusing process for a homebuyer. Whether it’s your first home purchase, or you’ve experienced several transactions, it’s important that when getting ready to buy a house to remember the 5Ps: Proper Preparation Prevents Poor Purchase.

PROPER: Regardless of what it is that you’re doing, there is a proper approach and steps to follow and tools needed in order to complete a project efficiently and skillfully, and purchasing a home is no different. Someone who has experience in the skill for the task, just by the very nature of their experience, would have a jumpstart in the process. As a buyer, and with no out-of-pocket expense to you, enlisting the support of a real estate agent, who may complete several transactions annually, can be a great asset in walking you through your transaction. With familiarity with the market conditions and homes available, recommendations for partners that may be needed during the transaction (like home inspectors, lenders and real estate attorneys), and even the typical forms and contracts utilized in your state for the transaction, having someone guide you through the process leaning on their experience can automatically take out a bit of uncertainty and unease in the journey.

PREPARATION: If you went to the grocery store and you didn’t know how much money was in your checking account, or how much cash was in your wallet, how much would you spend on groceries? Would you fill the cart up, only to get to the checkout line and discover your card had been declined or your wallet was empty? This is an analogy for a home purchase, of course. It’s tempting, in the excitement of buying a house, to request showings of homes prior to getting prequalified, believing that when you find “the one”, to be the time to reach out to a lender. On the contrary, if you’ll be obtaining financing of your next home purchase, obtaining preapproval prior to starting the search is the preferred way to go. While you may have excellent credit, steady income, a big chunk of a down payment to put down, etc., knowing exactly what you can afford and the type of financing that you are qualified for will help to direct your home search. If there are any issues with your credit, those can be ironed out. You never know, you may find out that you can actually afford more house than you had thought! Or when it’s time to put in an offer, it will be that much stronger and may be chosen over another offer that doesn’t have the same types of prequalified documentation and prep work done.

PREVENTS: The saying goes that “An ounce of prevention is worth a pound of cure.” How this resonates with a home purchase! When buying a home, make sure to have a professional home inspection completed. It’s better to know what you’re purchasing now, then to be surprised with potential costly issues later.

POOR: If something is done poorly, why bother starting at all? If you have a poor vision on the type of home that you’re looking for, you’ll spend a lot of time looking at houses, rather than buying a house. This situation increases exponentially when it comes to partners searching for a home! Get crystal clear on what it is that you’re looking for in: budget, location, amount of fix-up needed, style, bedrooms, bathrooms, etc. While you might not find absolutely everything you’re looking for in a home, it will help to drill down on what’s most important to you. The better vision that you have ahead of time, the easier and more enjoyable the process will be.

PURCHASE: While you could find your dream house in your next purchase, life marches on and situations change. There may come a time in the future when you’ll want to sell that home for a different one. Keeping in mind the resale-ability of a home during the home hunt can increase the confidence in the purchase you make today, for the seller in you tomorrow.

Remember the 5Ps: Proper Preparation Prevents Poor Purchase when buying your next home. Buying a home can be exhilarating, and confusing all rolled into one. By taking the time to plan now, you’ll feel more confident at the closing table later.

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Melissa and Todd Rolland

Melissa Rolland is a real estate salesperson, accredited home stager and has been a real estate investor for over a decade, helping hundreds of homeowners buy houses, sell houses, and invest in real e....

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