Real Estate 101: First Time Homebuyer’s Guide

"If you are going to be buying real estate for the first time, the process can seem overwhelming. Indeed, there’s a lot to learn. Of course, you’ll work with a professional real estate agent who can help you to understand the process, but you should do some studying on your own to make sure that you know what you’re getting in to. This is especially true if you are investing in real estate with the hopes that you’ll be able to make a profit off it in the near future.

Before buying first time real estate, here are some things that you need to know:

• There are buyer’s markets and seller’s markets and you should know when you’re in the midst of which. Pay attention to the sale prices of homes in the areas that you are looking to buy. Watch if they go up or down over time. Following the trends will help you to know when it’s a good time to buy and when you need to wait.

• There’s a slight difference between real estate agents and realtors. A realtor is a member of the National Realtor Association which involves certain training. If a real estate agent gains this status, he or she might be a good choice. But a realtor may be someone who is not a real estate agent but rather is someone else in the industry (such as a home appraiser). Ask questions about the professionals that you’ll be working with to make sure that you’re working the real estate agent or realtor that is right for your needs.

• There’s a language to be learned when buying real estate for the first time. You need to know about "closings" and about "amortization" on home loans and about all kinds of other industry terms. Get a real estate dictionary or a basic book on buying real estate so that you can keep up with the conversations going on around you.
• You’ll probably need to get a loan for buying first time real estate. Work with your lender to get the best rate possible. You should also know that there are special tax deals for home owners, especially in the year of purchase. Make sure to work with a tax attorney to get yourself the best financial deal.

• It’s a bad idea to be impulsive but if you know what you want then you should go after it. You probably aren’t going to want the first home that you look at. You might not even decide to invest in the first hundred homes that you look at. But if you do walk into your ideal home early on, it’s okay to make a move on it. Just make sure that you look realistically at the value of the home so that you don’t get a bad deal.

Most of buying a first time home is actually about using some common sense. Ask yourself if you’d let your daughter, grandmother or best friend buy the home that you want to buy. If so, you’re probably getting yourself a good deal. If not, you’ll want to do some more legwork and ask a lot of questions. It’s okay to be confused if this is your first time being real estate, especially since this is an investment that could benefit you greatly if you play your cards right!"