Taking control of your homebuying experience

Buying a house, for most people, is more than just a transaction. For many, it’s a defining moment and can determine what their lives look like for years to come. So finding the right home isn’t just about space or price needs (although those things are very important). Finding the right home is imperative to living the kind of life you want to live.

And since you are the architect of your own life, why not take control of your homebuying experience? Below are a few tips on how to get started.

Get your affairs in order

Especially in a market like this, being a prepared homebuyer is not only prudent, but could help propel you to the front of the line when competing with other buyers for a home. Keep in mind that sellers want to minimize risk that a deal won’t close, so they’re looking for buyers who can perform financially. Some buyers pay in cash and will just need a proof of funds to prepare this portion of the deal. Others will finance the home purchase through a loan. This is where the difference between prequalification and preapproval matters. 

Prequalification

Typically, a prequalification letter is prepared to estimate how much home you can afford and relies on self-reported information. It is uncommon for a prequalification process to result in a “hard inquiry” on your credit. A prequalification letter does show that you’re serious about the homebuying process, but might not carry as much weight as a preapproval.

Preapproval

A preapproval, on the other hand, is typically a stronger indication of a lender’s willingness to provide a loan to the buyer, and is therefore a stronger indicator of a buyer’s ability to perform financially. The preapproval process involves a lender pulling credit information, which can result in a “hard inquiry” on credit. However, this is an important step in showing a seller that you are serious about purchasing a home and are able to perform.

Depending on your timeline, a prequalification may get you in the door but a preapproval could give a seller more peace of mind. Keep in mind that a home must appraise in addition to a buyer being approved for a lender to underwrite the full amount of the loan.

Don’t limit your search

There’s no one stop shop to find all houses for sale in any market (no, not even Zillow). Websites like Realtor.com and local or national real estate agencies’ websites only show homes that have been placed on an area’s Multiple Listing Service (MLS). But, the MLS isn’t an exhaustive list of all available homes in the market.

If you want the best chance of finding the perfect home for you, make sure you’re doing your own research and checking alternative marketplaces as well as social media for available homes. Homeshake has homes that aren’t listed on any MLS, meaning if you don’t make it part of your research, you could be missing out on your dream home.

Do some price research

Most sellers have a comparative sales analysis (comp report) prepared to give them an idea of how to price their home. A comp report is prepared by a real estate professional and typically includes recent sale prices of similar homes in the same, or a very close, area. Unfortunately, most of the time, these comp reports are only available to the seller and buyers never see them, meaning they have less information when entering into negotiations.

Homeshake prepares comp reports for every active home on the site. Luckily, the comp reports are added directly to the listing for both buyers and sellers to see, so everyone is more informed. If you’re looking at a home that is not on Homeshake and you still want to do your own price research, here’s how you can put together a comp report yourself:

1. Step 1

Make an introduction

For homes that aren’t on Homeshake, buyers usually need to go through an agent to express interest in a home. 

On Homeshake, every seller has an inbox where you can send messages and request tours directly. Sellers can then reply directly to a buyer’s inbox. When the time comes, buyers can even submit an offer directly to a seller’s inbox without having to do any paperwork. It’s all included and everyone is protected under Homeshake’s dual agency.

On sites like Zillow, if a home is For Sale By Owner, the site still might try to push you through to a buyer’s agent. Remember that you don’t need an agent to purchase a home.

If you’re a buyer who is interested in a Homeshake home and have questions about your buyer’s agent being involved in the deal, reach out to us at hello@homeshake.com.

Remember that this is a friendly process

For too long, real estate has been made to feel like a boxing ring with the seller in one corner and the buyer in another, ready to duke it out in the negotiation. 

In reality, everyone is working together toward the same goal. Sellers want to sell their home and buyers want to buy their home. When you enter the offer and negotiation with the right mindset, finding the deal that works best for everyone is much easier. When people work together directly to achieve an end, they can even end up becoming friends like Deb and her buyers:

Overall, buying a home can seem like a daunting task given that it’s one of the largest investments most people will make in their lifetime. But when you’re properly prepared and you approach the process with the right mindset, finding your dream home will happen.