Welcome back to The West Valley Home Team Buyer Empowerment University!  Hopefully by now you have analyzed your finances, determined a payment you feel comfortable with and spoken to a mortgage professional to be pre-approved.

If you have completed these important steps, it is time to start searching for your next home!  Buying a home is an important decision that can make an enormous difference in your lifestyle. And as you know, it is also the biggest financial transaction you will make. There are some specific things to consider when looking for a home.  Let's take a look at Step 2 in the 5 Steps of Buying a Home.

Step 2:  Finding a Home

1.  Be realistic:  There are no absolutely perfect homes and you might not be able to get everything you want. Decide what is important to you, and make sure you find a home that has the features you require. Be prepared to compromise on some of the items on your wish list. Make a checklist of these items and bring it with you when you view homes.  While viewing homes write down the pros and cons of each home.

2.  Choose carefully:  Buying a home is much more permanent than renting. Purchase a home that you are prepared to keep for a while. Select a home that will be reasonable to maintain, in both utilities and/or repairs. Consider factors that would affect the resale value of the home in the future.

3.  Be aware of the current market:  The current state of the real estate market in the area that you are looking for will play a big role when purchasing a home.  Low inventory and investor competition can make it more of a challenge to find the right home. Your Realtor can keep you up to date with current market trends. Keep in mind what is going on in the local market when placing your offer on a property. 

4.  Do your homework:  Make sure you understand the home buying process and the financing process. Speak to your Realtor and mortgage professional about the steps involved. Being prepared and educated helps to avoid issues and conflicts during the process. 

5.  Search for homes on the MLS: Today it is easier than ever to search for homes on the internet.  Our website,  www.TheWestValleyHomeTeam.com, provides an easy way to do a personal search on the MLS.  You can save your search, keep track of favorites, request more information or request a showing.  In addition, you can sign up for email alerts that let you know when properties within your search criteria are added to the market.  

6.  Know the types of sellers on the MLS:

The Traditional Equity Seller: This is the largest portion of the market since more people are finding they have equity in their home. Inventory has increased over the last year which gives buyers more options. The typical closing period is 30 days in order to allow the buyer's lender to complete the loan process. Cash buyers can usually close quicker.

The Short Sale Seller: This section of the market has decreased significantly over the last few years. A short sale is similar to a traditional sale however a third party, the seller's lender, is thrown into the mix so it changes the process. With a short sale, you still submit your offer to the current owner initially, and the purchase contract has your name and the owner's name on it. However, the entire sale is dependent upon the owner's lender approving your offer. The owner's lender also has to approve the seller for the short sale and agree to sell the home for less than the owner owes. It is important to keep in mind that the short sale process may take months. If you are looking to move in right away, a short sale may not be the best choice for you. If you are willing to wait it might be a good option as they can be priced lower than traditional sales.

The Bank Owned Property: Also known as a foreclosure. The number of foreclosures on the market has also decreased over the last few years. The typical closing time for a bank owned property is 45 days, however, it can vary and depends on the bank that owns the property. Each bank has their own process of selling a foreclosure and some use an online bidding system.

7.  Property Status on the MLS:  There are seven different property statuses on the Arizona MLS:  Active, UCB, Pending, Temporarily Off Market, Closed, Expired, and Cancelled.  To learn more view our blog post about the Arizona MLS Property Status.

What’s next? The next West Valley Home Team Buyer Empowerment University post will discuss Making an Offer on a Home.

Missed the last post?  Here's the link to Step 1:  Qualifying for a Home