First time home buyers are in the exciting position of both choosing a home and making one the biggest investments in life.  But are realtors necessary?  I hear this question a lot from first time homebuyers.

They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting.  Well, that opens the first can of worms for first time homebuyers.

Realtors usually work as either buyer’s agents or seller’s agents.  That friendly realtor at the open house only represents the interests of her clients (the sellers.)  That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house.  But all the unknowns typically overwhelm a first time homebuyer.  The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again?”

Once you decide to work with a realtor, let them really work for you.  Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones.

List your desired amenities and priorities so that your realtor really knows what to look for.  Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must or that you need a double car garage.

Where to Find Competent Realtors

Realtors are everywhere.  Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability.

Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your first home.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town.

Remember, in addition to having professional knowledge of the real estate game, your real estate agent will be familiar with the local area. Ask lots of questions, and expect lots of information in return.

You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about the price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home?

Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

First Time Home Buyer Tax Credit

A tax credit for first time home buyers is part of the Housing and Economic Recovery Act of 2008. The maximum amount of $7500 is a one-time-only tax credit, so it reduces your tax bill or adds to your refund dollar for dollar.

Tax Credit for First Time Home Buyers

Did you know that you may be eligible for the First-Time Home Buyer Tax Credit that is part of the Housing and Economic Recovery Act of 2008. This tax credit is designed to encourage first-time home buyers to purchase their first homes.

First Time Home Buyer Advice

In one information packed hour, you will learn If you should buy a home or rent (buying a home is not appropriate for everyone’s lifestyle). If you qualify to buy a home, what price you qualify for How much money, if any.

Here’s a video regarding regarding first time home buyer grants in each State and the Federal stimulus program. www.buying-your-first-home.com

If you are a first time home buyer, you are facing even more uncertainties today than ever before and you need to find out what to do how.

There is nothing quite like owning your own home. Previous cave dwellers have developed into proud homeowners.

The current market might be very intimidating to the first time buyer but on the other hand is full of opportunities to get into your first home at a more reasonable price.

Here a quick guide to the most important steps towards first home ownership.

Examine Your Budget

If you are paying rent presently and can manage these payments, you can expect to be able to do the same for a similar mortgage premium on a monthly basis.

Do not forget that you will also have to pay home owners insurance and property taxes in addition to your mortgage premiums.

Those rental fees you paid included such hidden costs such as heating, maintenance and occasional property upgrades.

Pre-Qualify for a Mortgage

Get pre-qualified with two or more financial lenders. Work with at least two mortgage brokers and request to be told which lenders they will approach on your behalf.

Also, ensure that they are not talking to the same lenders and request confirmation.

Select a Real Estate Agent in the target Area

Selecting a real estate agent in the area you will be buying in. Do not sign with the first agent you come across but interview several and in depth.

Ask them relevant and important questions and attempt to discover one that has appropriate experience and is able to assist you. Beware of inexperienced agents.

It is a good signal if the real estate agent asks you numerous questions in return. The agent and their associated company should also offer a first class online MLS search site.

Review Real Estate Listings Online

Spend considerable time browsing multiple listing services on the Internet. Become familiar with what the market has to offer. Let the agent send you a list of what homes have just closed and demand regular updates.

Closed prices are a better indicator of value than listing prices. Be aware that closings happening today are the prices of 6-8 weeks ago.

In a rapidly falling market todays prices would be even lower.

Once you found a list of homes that interest you go over the list with your Realtor and have them supplement the list with their recommendations. Do not make a decision before you have seen all the homes on your list.

You will likely observe some of the search criteria that seemed to matter most to you might not be all that important after the first round of showings and other criteria have become more prominent.

When you started your search a pool seemed like a must have but now it turns out that a large kitchen living room area is more important.

Finalize your List

With your newly calibrated list of important features go over all the properties again and re-evaluate the MLS listings. Select five properties for another round of showings.

The goal is to find three properties that you could see yourself living in. Do not try to narrow it down to 1 property and it is not wise to do so at this point in time.

Prepare Offers to Purchase

When you have found the 3 properties that you like the most have your agents prepare offers for all 3 properties. Start with a very low offer price.

The aim here is not to get your offer accepted but to find the seller that is most motivated. The responses to your offer will show you who that person is.

Make sure your agent prepares a cover letter that goes with your offer, which highlights the point that you are pre-approved for a mortgage and that you are ready to offer a quick close.

Also make sure it mentions that you have made offers on 3 properties and that you will only be buying the one offering the most realistic price.

Expect Counter Offers

Expect your offer to be countered if not outright accepted. The counter offers will show a great deal about the motivation of the sellers.

Have your agent call the listing agent to try to find out more about the sellers motivation and willingness to negotiate.

If none of your offers were accepted prepare another round of 3 offers at slightly higher prices. Make sure that you make it clear to the sellers that you will quickly close on the offer that is first accepted.

This strategy will lead you to purchase one of the 3 best homes you selected at a rock bottom price.