February’s cold weather lends itself to warm blankets on the sofa, binge watching a new series, or starting a new book. If you are buying or selling a home this year, February is also a great time to begin thinking about your next steps.
Just like the weather, the market tends to cool over the holiday months, and begins to warm with the temperatures. By April, there are many more homes for sale, meaning more competition on either side of a home sale.
Most home buyers start their search 6-18 months before they take action. This means online searching, going to open houses, and driving through neighborhoods, all to help you determine the characteristics of the home you hope to find, when the time is right. If you have had a consultation with a realtor and/or a lender, then you are well on your way. At this point, it is important to stay on track with your financial goals to facilitate your purchase.
If you are selling your existing home, maximizing your profits is likely your top priority. You need a negotiator in your corner - a capable realtor that is diligently working towards your goals with you.
The best outcomes result from a strategic approach that maximizes each factor in a sale: location, condition, and price. Your location is outside of anyone’s control, so the value of your home is at least partly fixed.
Staging to Sell and Value
Condition is where you, the seller, can have the most impact. Some items to consider with regard to staging your home:
Thoroughly deep clean the entire home, including ceiling fans, baseboards, oven, and closets.
Fix any nicks, cracks, or holes in the walls. Repaint, if needed, with neutral colors only, such as beige, cream, or light gray.
Take down all personal photos and any personal items.
Remove all valuables, including medications and jewelry. Password protect any electronics in the home. Don’t leave anything of value in plain sight.
Make sure all light bulbs are working and place the highest wattage bulbs you can safely place in each lighting fixture. Add lamps to any room without adequate lighting.
Declutter, declutter, declutter. Your home should no longer look like a home. It should look like a hotel or model home. At this point, it is no longer your home. It is the future buyer’s home.
Finally, price your home based upon the competitive market. Look at your home through a buyer’s eyes. What would you be willing to pay for your home if you were buying it today? Your realtor will be able to give you a price range based on homes like yours that have recently sold. Having done all of these things, your realtor can reach the largest pool of potential buyers, so your home will sell quickly and with the best terms.
Focus on the Search for a New Place
When looking at what you want to buy, your search will vary, depending on whether you are upsizing, downsizing, or moving to a different part of the city, or even out of state. After your initial consultation with your realtor, get set up to receive automatic emails based on your desired search criteria.
When that (MLS) email comes, check it daily. Mark properties “interested” for those you want to see, “maybe” for properties you want more time to think about, and “not interested” for ones you definitely don’t like.
If there is something you love and want to see as soon as possible, connect with your realtor right away so a showing can be set up. In a normal market, plan to provide 24-48 hours notice prior to a showing, as it’s rare to be able to see a house or condo the same day. Properties usually are available to be seen Monday - Friday between 9 am - 7 pm, and Saturday and Sunday from 11 am - 6 pm. Sometimes sellers will allow showings outside of those hours but it is up to the individual seller.
In a hot market, properties can sell as quickly as one day. Your realtor will know if your price range, terms, and location require more immediate showings so you don’t miss out on those properties. Clear communication is essential so your expectations are met during your home search.
Keep reviewing the MLS emails. Your agent is also networking to find out about properties coming available that also meet your criteria. When you are able to see these properties early, you can get in front of the masses, which is critical in a hot market like Nashville.
This year, help your Valentine get sweet on a new home! Now you have the tools to win their heart for it.
About the Author
Emily Benedict
Emily Benedict (ebenedict@villagetn.com) is a Realtor working with buyers, sellers, investors, and developers throughout Middle Tennessee.
Buying a second home may seem like a pipe dream, something reserved for only the most well-off. But in reality, that’s far from the truth. Buying a second home is more doable than you might think for homeowners of all income levels who are looking to make a property investment or just have a place to vacation. According to a Redfin study, demand for second homes skyrocketed over the pandemic, growing an astonishing 84% year over year.
Where you purchase your second home can make or break your investment, not to mention how much enjoyment you get from your new pad. To help ensure you make the right decision for your needs, the team at Hippo analyzed data such as median home costs, average home insurance premiums, property value gain, crime rates, and much more for the 100 most populous cities across the nation. Below, we break down the top cities in every region of the U.S. that are worth investing in.
TOP CITIES FOR A SECOND HOME
If you don’t have your heart set on living in any particular part of the country but feel you’re financially ready to buy a second home, consider any of the following cities to settle down. With low median housing prices, relatively low property crime rates and high walkability scores and comfort indexes, these cities are perfect for families and young homeowners alike.
Fort Wayne, Indiana
El Paso, Texas
St. Louis, Missouri
Glendale, Arizona
Laredo, Texas
Boise, Idaho
North Las Vegas, Nevada
Bakersfield, California
Riverside, California
Tucson, Arizona
To learn more about what makes these cities so exceptional, keep reading for our regional breakdown.
5 BEST SOUTHERN CITIES
There’s a lot to love about the South. From good old Southern hospitality to the best BBQ and fried chicken around, it’s no surprise that so many people are moving to this part of the country in recent years. And while places like Austin, Texas, may be all the rage, high housing prices are starting to make cities like this unattainable for the average homeowner.
Below are the top five cities in the Southern portion of the U.S. poised for an Austin-like boom over the next few years, meaning if you get in now, you will likely see a terrific return on your investment. Plus, you can enjoy all the cities have to offer in the best way possible – as a local!
#5 – Lexington, Kentucky
Median home price: $240,302
Average home insurance premium: $1,852
Property value gain over the last 10 years: 53.05%
Comfort index: 7.3
Cost of living: 89.5
Percentage of those who own their own home: 54% Property crime rate: 471.4 (U.S. average is 500.1)
Walkability score: 34
Nestled in the heart of Kentucky is Lexington, a town known for its horses, bourbon and festivals that draw in sizable crowds from across the country every year. With a lower property crime rate and cost of living than the nationwide average, Lexington is a smart move for those wanting to soak in the city’s rich history, art, and culture (or just watch a derby or two). The city is even home to some of the nation’s best hospitals and colleges, making it a tremendous place to settle down no matter where you’re at in life.
#4 – Greensboro, North Carolina
Median home price: $195,842
Average home insurance premium: $1,636
Property value gain over the last 10 years: 53%
Comfort index: 7.6
Cost of living: 91.2
Percentage of those who own their own home: 50% Property crime rate: 743.2 (U.S. average is 500.1)
Walkability score: 29
If you’re looking to buy a home where you can not only experience all four seasons but where both mountains and beaches are just a short drive away, look no further than Greensboro, North Carolina. Nicknamed “Tournament Town” for its vast array of college sports, Greensboro is a wonderful place to settle down if you want to get behind a great team and feel the comradery throughout the community. Add to that a low median home price, little to no traffic and a 53% increase in property value over the last 10 years, and it’s not hard to see why Greensboro made it to the fourth spot on our list.
#3 – Winston-Salem, North Carolina
Median home price: $184,934
Average home insurance premium: $1,555
Property value gain over the last 10 years: 52.83%
Comfort index: 7.6
Cost of living: 88.4
Percentage of those who own their own home: 53% Property crime rate: 1,564.2 (U.S. average is 500.1)
Walkability score: 23
Who wouldn’t want to live in the town where Krispy Kreme was invented? Though it’s worth noting that Winston-Salem has much more to offer than just donuts. This hip and historic town boasts an extensive roster of attractions, exceptional restaurants and year-round entertainment made for families and bar crawlers alike. And with low housing and insurance premium averages, you’ll have plenty of cash left over to get in on all the fun.
#2 – Laredo, Texas
Median home price: $162,959
Average home insurance premium: $2,242
Property value gain over the last 10 years: 15.57%
Comfort index: 6.4
Cost of living: 82.6
Percentage of those who own their own home: 62% Property crime rate: 267.3 (U.S. average is 500.1)
Walkability score: 41
Lean into the blend of Mexican-American culture and purchase your second home in Laredo, Texas, one of the southernmost cities in the U.S. With the lowest home price and highest walkability score of our top Southern cities, Laredo is a no-brainer for young homeowners who don’t have a lot of savings built up (and love exploring on foot). Plus, most of your neighbors will be homeowners too, a good sign for overall curb appeal and increasing property value. So what are you waiting for? Get ready for the most authentic Mexican food you’ve ever had and plenty of river access in the border town of Laredo.
#1 – El Paso, Texas
Median home price: $165,671
Average home insurance premium: $2,361
Property value gain over the last 10 years: 32.53%
Comfort index: 8
Cost of living: 82.2
Percentage of those who own their own home: 59% Property crime rate: 152.6 (U.S. average is 500.1)
Walkability score: 41
Another Texas gem secures a top spot on our list of the best cities to buy a second home in the Southern region of the U.S. El Paso scores high on our list due to a low average home price, high ROI, high comfort index (it’s known as “Sun City,” after all) and one of the lowest property crime rates seen in all 100 cities we studied. Other reasons to call El Paso your second home include a rich culture, burgeoning culinary scene, and easy access to the Franklin Mountains and the Rio Grande river.
5 BEST MIDWESTERN CITIES
The Midwest may not be top of mind when you think of popular tourist destinations or vacation spots. But don’t count out this portion of the U.S. just yet, as Midwest is home to a lot more than meets the eye. With an abundance of natural wonders to explore and several unique foods only found in this area of the country – anyone up for cheese curds and Chicago-style hot dogs? – the following Midwest cities have plenty to offer those looking for a new place to purchase real estate.
#5 – Milwaukee, Wisconsin
Median home price: $163,980
Average home insurance premium: $1,541
Property value gain over the last 10 years: 77.42%
Comfort index: 6.8
Cost of living: 97.3
Percentage of those who own their own home: 41% Property crime rate: 608.2 (U.S. average is 500.1)
Walkability score: 63
Set on the western shore of Lake Michigan, Milwaukee, Wisconsin, takes the fifth spot for the best city to buy a second home in the Midwest. What exactly makes this city so fab? It’s seen a huge property value increase over the last decade, has a lower cost of living than the nationwide average and is a pretty walkable city. There’s also plenty of fun things to do inside Milwaukee’s city limits, from skating on an ice rink that’s bigger than Times Square to seeing the largest T-Rex skull in the world at the Milwaukee Public Museum.
#4 – Lincoln, Nebraska
Median home price: $237,557
Average home insurance premium: $2,278
Property value gain over the last 10 years: 67.29%
Comfort index: 7.2
Cost of living: 84.4
Percentage of those who own their own home: 57% Property crime rate: 339.4% (U.S. average is 500.1)
Walkability score: 43
The state capital of Nebraska, Lincoln, is another outstanding place to scoop up property and see a positive ROI. (Property value has gone up 67% there in the past 10 years). Named after former President Abraham Lincoln, this city is chock-full of historic places and museums. It also boasts a low property crime rate for a college town, meaning it’s a good choice if you’re looking to lease out your second home throughout the majority of the year.
#3 – Detroit, Michigan
Median home price: $52,905
Average home insurance premium: $3,279
Property value gain over the last 10 years: 234.48%
Comfort index: 6.9
Cost of living: 87.6
Percentage of those who own their own home: 47% Property crime rate: 1,027.9 (U.S. average is 500.1)
Walkability score: 53
If you’ve got a hankering for Detroit-style pizza and love to jam out to Motown music, Detroit, Michigan, is the city for you. Hallmarked for its extensive theatre district, booming auto industry and emerging art scene, Detroit is a fine place to buy if you want a solid deal on a house (the lowest out of all the cities we studied) and plenty of things to do. But if the high crime rate has you concerned, don’t fret. Detroit is looking up, with significant drops in property crime and an extensive rise in property value over the last 10 years.
#2 – Saint Louis, Missouri
Median home price: $158,572
Average home insurance premium: $2,648
Property value gain over the last 10 years: 46.82%
Comfort index: 7.2
Cost of living: 88.4
Percentage of those who own their own home: 69% Property crime rate: 363.9 (U.S. average is 500.1)
Walkability score: 65
With the highest walkability score of our top five Midwestern cities, St. Louis, Missouri scores high on our list due to a low cost of living and property crime rate, as well as a relatively low median house price. While you may be most aware of the St. Louis Cardinals and the famous Gateway Arch, you might be surprised to learn that the city is also well-loved for its plethora of beautiful parks and its own unique style of BBQ. It’s also a terrific place to bring the kids for vacations, as the city is home to The Magic House, one of the best children’s museums in the U.S.
#1 – Fort Wayne, Indiana
Median home price: $174,473
Average home insurance premium: $1,698
Property value gain over the last 10 years: 72.74%
Comfort index: 6.9
Cost of living: 86.2
Percentage of those who own their own home: 62% Property crime rate: 367.5 (U.S. average is 500.1)
Walkability score: 30
Rounding out our list of best cities to buy a second home in the Midwest is Fort Wayne, Indiana, a big city with a small-town feel. This charm is a prominent part of what keeps people around – that, and a lower cost of living than the national average. If you’re looking for a noteworthy place to visit and enjoy the snow or escape the brutal summer heat seen in most other portions of the country, Fort Wayne is your best bet.
5 BEST WESTERN CITIES
The biggest region in the United States, the Western portion of our country is a melting pot of landscapes, cultures, and activities. This means if you aren’t quite sure where you want to buy your second home yet, but you know what you want to be nearby, it’s safe to assume you’ll find what you’re looking for in this portion of the country. From the bright lights and casinos of Las Vegas to the perfect temps and beaches of sunny California, there is something for everyone in the Western half of the U.S.
Unfortunately, many states on the West Coast are known for their high cost of living and sky-high home prices. But that doesn’t mean there aren’t great places to purchase property. You just might be surprised at the affordability of some of the smaller cities peppered throughout the region. Take a look at the top five cities for a second home I the West below.
#5 – Riverside, California
Median home price: $533,062
Average home insurance premium: $835
Property value gain over the last 10 years: 142.3%
Comfort index: 8.7
Cost of living: 82.1
Percentage of those who own their own home: 54% Property crime rate: 390.7 (U.S. average is 500.1)
Walkability score: 42
Are you surprised to see a California city on our list? Don’t be! While housing prices may be relatively high (although extremely low when compared to its neighbor Los Angeles), the city’s affordable home insurance premiums, cost of living, comfort index and continually rising property value make investing in Riverside a no-brainer. Riverside also boasts one of the lowest costs of living and highest comfort indexes in all the cities we studied, making California dreamin’ no longer just a dream for many homeowners.
#4 – Bakersfield, California
Median home price: $315,014
Average home insurance premium: $800
Property value gain over the last 10 years: 115.76%
Comfort index: 8.1
Cost of living: 91.8
Percentage of those who own their own home: 59% Property crime rate: 1001.9 (U.S. average is 500.1)
Walkability score: 34
With even lower home and home insurance prices than Riverside, Bakersfield, California, takes the fourth spot on our list of best cities for a second home in the West. Bakersfield earned an A+ rating for ethnic and economic diversity, making it a strong choice for young professionals looking to expand their real estate portfolio. Plus, the proximity to mountains, beaches, and major cities combined with a low cost of living solidifies Bakersfield as a little-known gem of the Golden State.
#3 – North Las Vegas, Nevada
Median home price: $325,485
Average home insurance premium: $1,119
Property value gain over the last 10 years: 195.89%
Comfort index: 7.4
Cost of living: 97.8
Percentage of those who own their own home: 58% Property crime rate: 480.3 (U.S. average is 500.1)
Walkability score: 33
A stone’s throw away from the hustle and bustle of the Las Vegas Strip, buying a second home in North Las Vegas, Nevada, is an awesome idea for younger homeowners. Whether you want to live close to the action or you’re just planning leasing out the property to tourists to make some cash, this suburb of Vegas can be a perfect fit. And if you’re a NASCAR fan, you’ll love the proximity to the Las Vegas motor Speedway, which also hosts various dirt and drag racing events.
#2 – Boise, Idaho
Median home price: $495,485
Average home insurance premium: $1,216
Property value gain over the last 10 years: 234.78%
Comfort index: 7.3
Cost of living: 93.7
Percentage of those who own their own home: 61% Property crime rate: 203.2 (U.S. average is 500.1)
Walkability score: 39
Want to own a home in a city where you can go to a jazz festival, watch minor league sports teams, and go skiing and hiking all within city limits? Then head on over to Boise, Idaho, a city perfect for families due to its low crime rate, highly regarded schools and huge property ROI. In fact, Boise saw the most considerable property value increase over the last 10 years out of all 100 cities we studied.
#1 – Glendale, Arizona
Median home price: $333,159
Average home insurance premium: $797
Property value gain over the last 10 years: 229.86%
Comfort index: 7.3
Cost of living: 94.9
Percentage of those who own their own home: 55% Property crime rate: 557.6 (U.S. average is 500.1)
Walkability score: 40
A northwestern suburb of Phoenix, Glendale, Arizona, has secured the top spot in the Western region due to its affordable home insurance premiums, high property value growth rate and walkability rating. But outside of the numbers, Glendale draws people in with its fun attractions such as the West Wind Drive-In and a vast array of antique stores that have earned Glendale the nickname “Arizona’s Antique Capital.”
5 BEST NORTHEASTERN CITIES
While overall, cities in the Northeast region of the U.S. scored lower on our list than any other, there’s still lots to love about the country’s smallest region. Whether you’re looking for a second home in the hustle and bustle of Manhattan or you want to slow things down in Philly, our breakdown of the top five cities in the Northeast will help you decide exactly where to buy your next home. A big bonus? They’re all super walkable!
#5 – Newark, New Jersey
Median home price: $359,845
Average home insurance premium: $1,980
Property value gain over the last 10 years: 69.73%
Comfort index: 7.2
Cost of living: 119.1
Percentage of those who own their own home: 22% Property crime rate: 256.2 (U.S. average is 500.1)
Walkability score: 79
No matter if you’re obsessed with Taylor ham rolls or just want a second home that’s close to New York without all the noise, Newark, New Jersey is the place to be. The second most walkable city on our list, Newark is also known for its famous ice hockey team, the New Jersey Devils, as well as a wide array of colleges. However, only 22% of Newark residents are homeowners, making purchasing in this area a bit of an anomaly.
#4 – New York, New York
Median home price: $662,535
Average home insurance premium: $1,045
Property value gain over the last 10 years: 53.01%
Comfort index: 7.3
Cost of living: 162.3
Percentage of those who own their own home: 33% Property crime rate: 117.5 (U.S. average is 500.1)
Walkability score: 88
What is there to say about New York City that hasn’t already been said? There’s a reason thousands of movies, TV shows and books are set there, after all. NYC is pure magic, and it’s a hotspot for young professionals looking to make moves in their careers. (It’s also the most walkable city we studied.) And while you may not think of NYC as being relatively affordable – and to live there, you’d be right – but the recent pandemic has caused housing prices to drop dramatically over the past year. This means if you’ve been dreaming of owning property in the City That Never Sleeps, now’s the time.
#3 – Philadelphia, Pennsylvania
Median home price: $221,996
Average home insurance premium: $2,946
Property value gain over the last 10 years: 63.23%
Comfort index: 7.3
Cost of living: 103.6
Percentage of those who own their own home: 53% Property crime rate: 409.4 (U.S. average is 500.1)
Walkability score: 79
Often considered the birthplace of the United States, it’s safe to say there’s a lot of history packed into the bustling city of Philadelphia, Pennsylvania. Foodies and artists alike will find plenty to do in Philly’s city limits, such as the Manayunk Arts Festival and over 300 BYOB restaurants across the city. Philly scored high on our list of second home cities due to its low housing prices, high percentage of homeownership and first-class walkability score. (Our love for Philly cheesesteaks played no factor – we swear!)
#2 – Pittsburgh, Pennsylvania
Median home price: $219,571
Average home insurance premium: $2,052
Property value gain over the last 10 years: 97.81%
Comfort index: 7.1
Cost of living: 95.5
Percentage of those who own their own home: 47% Property crime rate: 443.2 (U.S. average is 500.1)
Walkability score: 63
If you want to move to one of the best cities in the Northeast, but you don’t want to spend an arm and a leg to do it, consider Pittsburgh. With the lowest cost of living of our top Northeastern cities – and low housing costs to boot – Pittsburgh is a smart move for those who want to invest in property for the very first time. Other highlights of life in Pittsburgh include impressive (but hilly) biking trails, the Carnegie Museum of Art and plenty of Steelers games.
#1 – Buffalo, New York
Median home price: $186,970
Average home insurance premium: $1,703
Property value gain over the last 10 years: 133.86%
Comfort index: 6.4
Cost of living: 101.4
Percentage of those who own their own home: 41% Property crime rate: 629.7 (U.S. average is 500.1)
Walkability score: 68
Seated on the coast of Lake Erie, Buffalo is an excellent second home location for those wanting to enjoy the beauty of upstate New York. The city secured the top spot in the Northeastern region thanks to its super-low housing prices (the lowest out of all the top cities in this region), a cost-of-living average on par with the rest of the nation and a relatively high walkability score. It’s also the birthplace of Buffalo wings – you know, if you’re into easy access to delicious food.
GETTING COVERAGE FOR YOUR SECOND HOME
Though you may not spend all your time at your second home, that doesn’t mean it doesn’t deserve protection. Quite the opposite, actually. Since you won’t always be around to keep watch, it’s a smart idea to beef up security and invest in proper insurance for your home. It’s also worth noting that the type of insurance you need will vary based on how often you plan on visiting and if you plan to rent it out to others.
ABOUT THE AUTHOR
Hippo is an InsurTech company that’s reimagining home insurance through the lens of homeowners – building policies with more comprehensive coverage for today’s consumers at up to 20% less than competitors.
Americans who identify as lesbian, gay, bisexual, or transgender have increased from 3.5 percent in 2012 to 4.5 percent and rising. As such, the LGBTQ community make up a significant portion of homeowners or potential home buyers in the United States. However, a 2018 survey found that only 49 percent of members of the LGBT community were homeowners, compared to 64 percent of the general population.
Buying a home is a huge accomplishment, and for many the completion of a lifelong goal. But, as exciting as this process is it is also a confusing, scary time for many individuals. That’s because there is a lot of variability when it comes to buying a home, and with the popularity of the internet there is an information overload regarding the topic. All of this combined with the financial hurdles associated with homeownership can make the process of buying your first home seem daunting.
That’s where our first time home buyer checklist comes in. We aim to make buying your first home as straightforward and simple as possible. Saving a down payment, choosing a location, and picking up the keys will all be your job – but we want to help you along with the process. The following information should walk you through each step you need to take to buy your first home.
What Do I Need for My First House?
The only thing you need for certain to buy a house is a down payment and loan approval – however, there are numerous other factors to consider before making this commitment. When it comes to your finances, you will likely want to be in a place of stability. This means you have a regular income, some savings, and a job you can picture yourself in for a while. You will likely also need a solid credit score and funds available for a down payment. These variables are crucial in determining whether you are able to purchase your first home, though there are some other factors that should come into play.
Buying your first home is a big commitment, so it is also important to consider your personal goals before getting started. Ask yourself where you want to live and put roots down, and how long you see yourself there. Consider what amenities you want in a home, and if you are ready for the responsibilities of taking care of a property yourself. These questions can take time to answer, especially if you are making the decision with your spouse or family in mind.
Also try to remember that houses are bought and sold all the time, and you can move in the future if your plans change. While the home buying process can be complicated, it can be helpful to remember as you consider buying your first home.
Before You Get Started + Tips for Success for First Time Home Buyers
It can be helpful to remember that there is not a set point in time when you have to buy a home – and you can become a first time home buyer at any age. However, if you feel like you are ready to get started the following tips will help:
Pay down debt: Paying off outstanding debt is a great way to help secure more favorable loan terms once you begin the approval process.
Start saving early: Start saving up money as soon as you decide you want to become a homeowner, this will one day become your down payment.
Strengthen your credit: Look for ways to improve your credit score before applying for a loan, as this is one of the first things lenders will look at when evaluating your application.
Determine what you want: Consider what features and amenities you want in your first home, and research target price ranges based on your goals and finances.
Scout locations of interest: Visit any towns or neighborhoods you are considering buying a home in, this will help you set your budget.
Take your time: Don’t be afraid to take your time working through the above steps, buying a home is a big commitment and should not be taken lightly.
Checklist for Buying Your First Home
Our first time home buyer checklist will tell you everything you need to know before purchasing a property. There are several financial and personal considerations to make as you navigate the home buying process. Read through each of the following action items listed below as you start your journey:
Set your budget
The budget for your first home should be determined by looking at a few different factors. First, consider how much you have saved as a down payment. Generally speaking, home buyers should try to aim for 20 percent of the purchase price as a down payment – as this will allow them to avoid paying mortgage insurance on their home loan.
After considering your savings, you should also look at your income, job security, credit score, and preferred lender. You can then plug this information into a home loan calculator online. This will give you a better idea of your monthly mortgage payment options, and in turn help you identify a target price range for your first home.
Get pre-approved for a loan
Once you have a strong understanding of your financial situation and preferred budget, it is time to start meeting with lenders. You will typically need to bring statements and proof of income to apply for a home loan. Be sure to ask a lot of questions at this time to ensure you are aware of the details of the mortgage.
Don’t be afraid to shop around as you meet with lenders. In fact, this is the best way to ensure you secure a favorable interest rate and the best loan terms. When you finally find a lender you are comfortable with, request a pre-approval letter so you can begin looking for houses.
Begin the search for your new home
Begin looking for property listings in your preferred neighborhoods with the help of online listing sites like Zillow or Redfin. These will help you narrow down by the amenities you are looking for and give you a better idea of how many properties are on the market in your area.
This is also a good time to start getting organized. While you likely already have your financial documents in one place, it is a good idea to keep a list or spreadsheet of properties you are interested in. Organization will help you efficiently navigate the home buying process and will prepare you for working with an agent in the future.
Find a real estate agent
After you have an idea of what you are looking for, it’s time to start the fun part: viewing houses. Reach out to some local real estate agents in your area and set up a time to talk about your home search. Write down a list of questions you have about the market and share what you are looking for in a home. Use these conversations to find someone you are comfortable working with before moving forward.
Decide which agent you want to work with and begin touring properties in your area. Remember that they are there to help guide you through any step of the home buying process. Their expertise should help you set up viewings, identify new listings, and ultimately negotiate the purchase of your first home.
Submit your offer(s)
When you finally find your ideal first home, it’s time to submit an offer. An official offer will typically include your pre-approval letter, the price you are willing to pay, an expiration date for the offer, and any closing details you are able to provide. You will also pay an earnest money amount to show the seller you are serious about the offer; this is typically one to two percent of the home’s value.
Unfortunately, the first offer you submit will not always be accepted. It could take a few back and forth negotiations to secure the home, or in some cases you may even lose the property to another eager buyer. The most important tip or surviving this nerve-wracking portion of the home buying process is to be patient and trust your real estate agent.
Get a home inspection and appraisal
Congratulations on your offer being accepted, you are only a few short steps away from becoming a homeowner! This part of the process will involve quite a bit of paperwork as you get the property appraised and inspected. No matter how excited you are about becoming a homeowner, remember to not skip over this step in the process.
A home inspection and appraisal should reveal any potential discrepancies in the list price of the home, or any repairs that need to be made. Depending on the findings, you may be able to renegotiate the sale of the home at this point in time. This includes requesting any repairs from the sellers or in some cases lowering the sale price.
Close the sale
Closing refers to the final paperwork and legal processes of purchasing a home. During this portion of the sale, you will likely finalize your home loan and purchase agreement and submit the down payment for the home. There may be additional costs at this time, such as administrative fees, inspection costs or title transfer fees. Once you close the property, the previous owners typically have a move out timeline before you get the keys to your first home.
Create (or update) your Estate Plan
The final step of purchasing your first home is to either create or update your Estate Plan to reflect your new asset. In doing so, you can ensure your hard-earned property is passed down to a loved one after your death. This can allow your property to stay in the family and can help your loved ones avoid going to probate court to obtain the property.
Depending on the value of your new home, you may also need to consider adding a Trust to your Estate Plan at this time. A Trust is generally recommended when you have assets totaling over $200,000 – which in many cases includes a home. Trusts can help reduce your overall Estate taxes, provide added control over the asset in question, and even help protect your beneficiaries.
While you may be tired of doing paperwork at this point in the home buying process, an Estate Plan can be completed in a surprisingly short amount of time. After you complete all of the work of purchasing your first home, it is a good idea to take one additional step to protect it.
Buying your first house is a big achievement – and it will take a lot of work to get there. However, with the right amount of planning and preparation it can be done. Start saving early, improve your credit, and consider what you want in a home. These steps will allow you to lay the groundwork for your first home – and will help immensely as you begin reviewing your financing options. Follow our first time home buyer checklist as you navigate the process of buying a home, and don’t forget to protect your new asset with an updated Estate Plan.
About the Author:
Trust & Will, the leader in online estate planning in the United States, makes estate planning simple, affordable, and accessible for everyone by providing a secure way to set up your plan online in minutes.
Photo by Nachelle Nocom on Unsplash
Emily Benedict
