Whether you’re a first-time homebuyer, or a seasoned real estate veteran, it’s always great to consider some important factors when buying a house. Consider if you need to sell a home before purchasing, or how much equity you currently own. Does the property you’re purchasing offer energy efficiency? What about how to select a real estate agent, or your real estate agent commission? Look no further for some tips on making a smart investment on your next home purchase.
Do you need to sell before you buy?
When you’re ready to take the plunge into buying a home, it’s important to know if you can buy before you sell. Some buyers will have a home sale contingency, which is simply a clause in your real estate sales contract which means the purchase of your new home in contingent on the sale of your previous property.
Before you know if you will need a home sale contingency, it’s important to assess your finances. Think about how much equity you have in your current home, and how much you have in savings accounts.
There are plenty of options for buying before selling as well!
Is your new home energy efficient?
Energy efficiency is a big factor for buyers and should be on your radar when considering making a smart choice on buying a house. According to the U.S. Department of Energy, a typical household can save 25 percent on utility bills if the home has energy efficiency measures.
Some things to look for to assess if a home is energy efficient include:
- Feel for air leaks around window and door seals
- Check if lighting utilizes LED bulbs
- Inspect insulation throughout the home and attic
- Evaluate large appliances for energy efficiency ratings
- Have a professional assess the HVAC system to ensure it is running properly
How to select your real estate agent?
According to a National Association of Realtors report, 88 percent of buyers purchased their home through a real estate agent or broker, and this is for good reason. Your real estate agent is there to guide you to your dream property, and to ensure your home purchase goes smoothly.
Things to consider when finding an agent are referrals from friends and family, utilize technology to your advantage, identify relevant certifications, and plenty more.
Also, consider what a fair commission is for using a real estate agent’s expertise. The national average real estate commission is 5.8 percent, according to HomeLight’s transactional data. But this number can fluctuate from agent-to-agent and by location. When selecting your perfect agent, be sure to ask about commission prices, as this will affect your finances at the closing table.
When you’re ready to make a home purchase, remember to make smart choices and to consider these important factors. With the right help on your team and your eyes wide open, you will be in your new home-sweet-home in no time.