How to Buy a New House Tips

• Step 1

  Get preapproved for a mortgage before you begin looking at homes. Getting preapproved will give you a sense of how much you can pay for a house. Also, mortgage preapproval makes you a more attractive buyer because there is no risk that you will not be able to secure the financing for the house.

• Step 2

  Research homes in the area where you are looking to buy using the Multiple Listing Service (MLS -- see resources below) Web site. The MLS is a comprehensive listing service that lists all houses for sale, including broker sales, owner sales and new construction. Your real estate agent (if you hire one) can also help you research comparable home transactions.

• Step 3

  Visit the properties you are interested in with a building inspector that you hire. Do not rely on building inspectors or reports provided by the seller. Any defects that your inspector uncovers should be factored into the price you are willing to pay for the home. Talk about the property with the seller. In particular, ask the seller why he is selling the home.

• Step 4

  Make an offer for the property that is based on the prices of similar properties in the same area. Do not simply offer the price for which the house is listed. There are numerous Web sites that can help you research the selling prices of comparable homes. Two of the most popular Web sites are Multiple Listing Service and Trulia. (See Resources below.)

• Step 5

  Negotiate the contract with the seller. Use your real estate lawyer and your real estate agent (if you hire one) extensively during the negotiating process, and do not sign any documents until your lawyer has reviewed them. When negotiating the contract, be particularly mindful of 1) the amount of time you will have to close on the purchase after you have signed the contract; 2) whether the contract will allow you to back out of the deal for any reason, including an inability to secure a mortgage; 3) whether the property is free of liens; and 4) any property defects or needed repairs that must be addressed. If there is a significant number of repairs, you should try and negotiate a lower purchase price.

• 4
• Real estate lawyer
• Real estate lawyer
• Give some thought as to whether or not you want to hire a real estate agent to assist you with the purchase process. Real estate agents can help you streamline your housing search, and they can be helpful for first-time homebuyers who have never been through the process before. Keep in mind that real estate agents only get paid if you buy a house, so their incentive is simply to get you to buy a house (not necessarily the perfect house for you). Also, if you do not hire a real estate agent, you should reduce the amount you are willing to pay for the house by 3 percent because the sellers will not have to pay this commission to a buyer's agent in the transaction.
• Give some thought as to whether or not you want to hire a real estate agent to assist you with the purchase process. Real estate agents can help you streamline your housing search, and they can be helpful for first-time homebuyers who have never been through the process before. Keep in mind that real estate agents only get paid if you buy a house, so their incentive is simply to get you to buy a house (not necessarily the perfect house for you). Also, if you do not hire a real estate agent, you should reduce the amount you are willing to pay for the house by 3 percent because the sellers will not have to pay this commission to a buyer's agent in the transaction.

References & Resources

• Buying a home for sale by owner safely
• Multiple Listing Service
• Trulia