What are three things a potential buyer should do before meeting with a real estate agent?

I was recently asked, "What are three things a potential buyer should do before meeting with a real estate agent?"  

Here are my top three:
 
1. Most important, get their financing in order!  This means if the buyer will need financing to purchase the home the need to apply for a Mortgage FIRST before contacting a Realtor.  This way the Buyer knows if they qualify for a mortgage and how much they can afford to purchase. This also let's them know what steps they would need to take should they not qualify at the moment for a mortgage. If paying cash they will want to make sure their funds are accessible and that they are able to show "proof of funds" when making an offer.
 
2. Figure out when they want to move.  Some buyers may be renting before they purchase.  If they are in a lease they will want to figure out how much notice they need to give if they plan on moving out when their lease is up, if they can go month to month after the lease expires and also some leases have a clause that will let them out of a lease to purchase a home.  If they currently own a home, they will want to put their house on the market, BEFORE they begin to look for a new home.  Since our market is still slow right now, it is likely their house could take 90+ days to sell. Of course they will want to have a plan if their home sells quickly what they will do.  Some seller's put their stuff in storage, some are able to work out a "lease back" with the new buyers or some can simply negotiate a move out date for which they feel comfortable.
 
3.  Make sure they have enough money saved up for their purchase. Of course their loan officer can give them a idea of how much they will need for their down payment and closing costs. They will also want to have some extra saved for costs that can come into play as far as inspections, transfer fees, insurance, utilities, extra furniture, window coverings, etc.


If they are selling their home, they need to take into consideration that they may not clear the dollar amount they have in their mind and be willing to make adjustments so they will not find themselves short of funds.  I always tell my Buyers, finding the home you want is the easy part once you have your financial affairs in order.  Once they have those steps in order a Realtor can help them find the home and area where they would like to live.

 

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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.
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