Have you ever wanted to stay ahead of the game when it comes to buying or selling a property? Need to find a way to remove all the stress and enjoy the process? You are not alone! That’s why I’ve put together a quick little guide packed with insights you simply won’t find anywhere else.
Based on my years of experience here in Northern Michigan, I’m going to share the top five questions I’m asked by the buyers every single day. Take a look, save the link to the article, and get in touch when you’re ready to take the next step. Let’s dive right in!
Question#1 What is the first step in purchasing a home?
Let me start by saying, I’ve lost count of how many people ask me about where to when it comes to buying a house. If you look online, you’ll find endless methods and strategies that can make the whole process seem far too complicated. But at the end of the day, don’t you just want to focus on finding your dream home?
That’s right but the problem with focusing solely on dreams and aspirations is that it makes it all too easy to forget the numbers. While this side of things can feel daunting and stressful to some, the numbers are what make everything work. That’s why I always recommend making your first step toward a new home by getting pre-approved for a mortgage.
The process starts by checking your credit score and calculating how much you can afford to borrow using one of the many online calculators the lenders will present you with. Different lenders will have different deals — particularly if you are a first-time buyer — but don’t let this overwhelm you.
By taking your time, you will be able to find a lender who offers the right balance between an affordable interest rate and a competitive deposit. Remember, you don’t want to try and secure a lower interest rate if it means you have put down every dollar and cent you have as the down payment. Stepping back and seeing the bigger picture will allow you to keep things in perspective. After all, the last thing you want is to move into your new home and find that you have nothing left over for small repairs or redecorating.
I can already tell what you’re thinking right now, and no, you’re not getting ahead of yourself by considering mortgages. There are two main benefits of starting with the numbers and they will make the world of difference when you want to remove the stress from the buying process.
Firstly, knowing how much you can borrow will help you narrow your search down to only the properties you can afford to purchase, allowing you to manage your expectations.
Secondly, being pre-approved for a mortgage will make you look 10 times better when you submit an offer to the seller. They will know right away that you’re serious and aren’t just testing the water.
Now that I’ve told you all about the first step you need to take to buy your dream home, I need to bring you up to speed with the world of placing offers.
Question #2 What Are My Options for Placing Offers And What If My Offer Is Turned Down?
Not every buyer can secure their dream home on their first attempt, so it's important to set that expectation right from the beginning. It wouldn’t be right of me to promise a 100% acceptance rate because all that will do is get your hopes up and then set you up for potential disappointment. As a realtor who takes pride in my client’s success, I never adopt strategies like these just to try and drum up more business.
The best thing you can do is follow some tried and tested strategies that I have put into practice over the years. First up, you will want to put your offer in a clearly worded letter or email and make a few details crystal clear. Your name and current address need to be on there, as does your source of funds (that’s why I suggested you get pre-approved) and the size of your deposit. Secondly, and this is the part too many people overlook at their peril, you need to include details of when you would like to take the keys. You’re unlikely to be able to get the exact date that you specify, but being upfront, open, and fully transparent with the seller is always worth it.
Once your offer is down in writing and you are happy with the wording and details included, a realtor like me can do the rest for you. With a trusted and experienced professional handling the delivery of the offer letter to the buyer, you can relax knowing that every detail is covered. This allows you to focus on the exciting aspects of the home-buying process, like choosing new furniture and wall colors.
But wait! What if something unexpected happens? What if you find out your offer is turned down by the seller? Don’t fret. Very rarely does the first offer you make get approved by the seller.
When you make an offer below the listing price, the seller will likely try to negotiate to recover some of the difference. This back-and-forth can feel drawn out if you’re handling it on your own, and waiting too long for a response might leave you second-guessing your decision. That’s why I always recommend working with an experienced realtor. With years of experience in Northern Michigan, I understand the market, the people, and what’s a fair price for any property, giving you peace of mind throughout the process.
Before you reach out, you are probably curious about how I get paid as part of the process. Don’t worry, that’s the focus of the next question I’m going to answer. Just keep reading.
Question#3 How does my realtor get paid?
Like most realtors in the country, I get paid on a commission basis. This means I get a pre-agreed percentage of the total sale price. Because I know that buying a home is expensive enough, I don’t charge an upfront fee or any form of retainer. What I do is wait until the transaction has gone through and then invoice accordingly. The beauty of this approach is that you don’t have to save up so you can use my services — simply follow the home buying process to its conclusion and the money is always sorted out in the end.
If you want to know about the commission structure, I’m always happy to talk you through how it all works. After all, if you’re going to entrust me with one of the biggest decisions of your life, you will ever make, you need to know a little more about me. Commission doesn’t just go to me, I split it with the broker who arranges the financing — this is how they get paid as part of the deal. And if all of this sounds overly complicated, remember that I’m always there to advise you every step of the way.
Remember to always work with a realtor who charges no upfront fee, takes a low commission, and has many years of experience in the local area. Anyone can start as a realtor and offer a deal that sounds too good to be true, but it’s the experience that will speak volumes for the quality of service you can expect. If in doubt, feel free to connect with me and I will always get back to you in no time.
I can also break down typical timelines and key payment milestones based on the type of property you’re looking at. Whether you’re buying or selling, having this information is important when you want to sidestep as much of the stress as possible.
Question#4 What If I Sell My Home and I Still Haven’t Found A New One Yet?
Sometimes, the timing of selling and buying a house does not align with each other, and it’s exhausting to coordinate the move all at once. But will that leave you without a home? Or that real estate market isn’t worth the hassle? Absolutely not. I understand your concern, but just forget about it for a while. All you need is a decent backup plan so nothing goes awry or comes up unexpectedly. Let me show you a couple of options to make this easier for you.
If you have a family and friends you can move in with, great! Staying with them temporarily will allow you to sell your home quicker and easier while also saving you money as you look to finish buying your new home.
Just be sure to communicate openly about the expected timelines as it will ensure you’re not inadvertently asking too much of your loved ones. Since things can shift change in the world of real estate, make sure you always keep them up to date with all the latest developments.
Being upfront and keeping them in the loop can go a long way in maintaining goodwill. I can help explain the timelines and likely sources of delay at every stage if you want to make sure you’re always seeing the bigger picture.
Some people look for a short-term rental in the local area so that they still have a place to call their own while they are finalizing the final steps of the buying process. While this can sound like the simplest solution, it will also typically be the most costly. You may also find that your short-term rental is a lot smaller than the home you’re selling and the home you hope to move into soon. This means that you might have to pay for storage for your belongings. Between paying for a rental and a storage unit, the costs can add up fast, making this option pricier than you might expect.
If these options are too burdensome, I often suggest my clients to negotiate a longer closing date on their property. If you have a good relationship with the buyer, you may well find that they are happy to wait a few more weeks to exchange contracts and get the keys in their hands.
As with everything in real estate, the key is to be open and honest at every step of the way. By making sure that your buyer knows what you have in mind, you can figure out your options sooner rather than later. This approach can give you more time to find your next home without the added expense of a temporary rental that doesn’t really feel like home.
We’ve covered the basics, so now it’s time I fielded the one question that I know is still on the tip of your tongue.
Question#5 Prices are going up and so are interest rates, should I wait to buy?
There will always be an article on Google that claims to know when is the perfect time to buy. Look a little closer at the results page and you will find ‘experts’ telling you that you would have to be mad to buy right now, while there will be just as many articles telling you that this is the perfect time to buy. I feel your pain — how do you know who to trust? — which is why I want to talk you through a simple approach that is completely independent and validated over years of my own experience. My approach is built on four simple questions that, once answered, will tell you whether or not it’s the right time for you to buy.
You first need to take a look at your budget to work out whether or not you can afford to pay the mortgage and comfortably cover your new household bills. For example, if you’re upgrading to a home that is nearly twice the size, it’s going to cost you a lot more to heat during the winter months.
Next up, does the property help you get closer to your dream home and the financial future you want to enjoy? You’d be surprised at how many people start the buying process on a whim or just have their heads turned by a beautiful listing. I want to help you adopt a much more strategic approach so that you can consistently take steps toward the lifestyle you have always wanted.
Next, how does your career look right now? If you’re in a long-term position and are working your way up the company, how stable do you think the whole industry is? And if you’re self-employed, do you see your current workload remaining steady for the foreseeable future? No one likes to think about being fired or struggling to find work, but you need to think about how likely this may be. If you don’t feel settled in your career, trying to make a change while also buying a house might not be the best idea.
Lastly, can you afford to put down a larger deposit to secure lower monthly payments? Do the math on this one with a little help from an expert and you will be able to quickly figure out whether or not a particular mortgage offers good value or not. With this knowledge, you will be able to choose a lender with your best interests at heart, helping you make the most of your money without the stress.
Final thoughts
Now that I’ve got you up to speed nice and quick, it’s your turn to take the next step. I’m always here if you need me, ready to help you get things moving with the peace of mind that really makes a difference. Just reach out whenever you’re ready, and I’ll walk you through everything without any fuss. Let me know when you’re ready—I’m here!