If your 2024 plans include buying a new home or property, having a plan going into the new year will help you feel prepared to embark on the process whenever you’re ready to begin your home search. From assessing your finances, identifying your home criteria, and partnering with the best real estate agent for you, there are some key steps you can take before your home search to help ensure a smooth homebuying experience. Read on for the steps to prepare for buying a home this year.
Assess your finances
Assessing your finances is the first step in creating a homebuying plan. Determining how much you can afford and want to spend will help shape your search criteria, including location, size, and amenities. If you plan on buying a home with cash, it’s essential to consult your financial advisor for guidance. Working with a mortgage lender is the first step to finance the purchase through a mortgage. The lender will assess your financial situation, and the first step is issuing you a pre-approval letter. This is an essential first step so you have proof of what you can afford, and it can make your offer more competitive.
Understand your house needs and wants
Once your financial house is in order, you can most accurately create a house needs and wants list. This list should be divided by the must-haves features and amenities vs. nice-to-haves. For example, location, the number of bedrooms, and outdoor space may be must-have criteria, while square footage, layout, and interior details, like an updated kitchen, may be nice-to-have criteria.
When you’re creating this list, it’s helpful to think about your long-term plans and any anticipated family changes. For example, if your family is still growing, you may opt to have additional bedrooms on your must-have list.
Interview real estate agents
Working with the best real estate agent can significantly impact your homebuying experience. It’s wise to interview three real estate agents so you can most accurately assess their expertise and knowledge about the area and make sure they are a personality fit. Industry experience is essential, as they are guiding you on a significant financial purchase. Area knowledge is equally important, as this opens doors to properties that may not be listed yet, as well as more detailed information on schools, area amenities, and housing values.
Research neighborhoods
If you’re considering several neighborhoods in an area, researching will help you feel confident that you’re searching for an area that best fits you. Factors to consider include school ratings, walkability, neighborhood amenities like a pool or golf course, and convenient transportation locations, such as highways and train lines.
Prepare to list your home if you’re selling
If you’re also selling your existing home, you must prepare to list and sell your home. This includes decluttering, organizing the house for professional photos, staging the home, and working with your real estate agent to time when your home goes to market.
Understand additional costs
The cost of buying a home isn’t always cut and dry. It’s essential to consider the home’s maintenance expenses, homeowner’s association fees, property taxes, and the cost of any interior updates you plan to make, such as renovations and other design work.
