Whether you’re a first- or second-time home buyer, it’s likely you’re facing a complex housing market. For this post, we interviewed some of the top-performing real estate agents in the country to gather expert home buying tips. We’ve curated 20 game-changing insights to simplify your home buying journey. From early planning to finding the right balance of negotiations, these tips are your guide to making the best possible decisions every step of the way. We also provide a few bonus tips, valuable resource links, and tools to help transform your buying experience into a more seamless and rewarding adventure. Top Las Vegas agent Rebecca McKenna-Inman has more than 22 years of experience in the industry. For her, the home buying process begins as soon as a buyer starts thinking about it. “I usually tell potential clients to start taking those first steps toward homeownership the minute they think about buying,” she says. “It might not happen for a year or two, but you should put a plan together. People need to find out what they can afford, how much they need to save, or any clean-up or improvements that might be required of their credit report.” “Do you want to be near a specific school if you have children or are planning to have them?” McKenna-Inman says. “Or are you okay with a commute to work if you find a house outside of town? Every buyer should consider the end result, which includes location, schools, and of course, price and affordability.” While it may seem early to be thinking about how to handle a low appraisal, McKenna-Inman says new shoppers have to look ahead and be ready. In many parts of the country, the housing market is running with a very low inventory, which means homes may sell for more than their appraised value. “There isn’t much you can do about the appraisal,” she says. “If the appraisal comes in below the purchase price, you’ll either need to try to renegotiate with the seller, or have the financial wherewithal to cover the difference between the purchase price and appraised value.” Keeping this in mind from the start can help when you start looking at listings. It also underscores our next expert home buying tip. Ruth Wordelman, a top Colorado agent who works nearly 80% more single-family homes than the average Colorado Springs agent, says that buyers should work with their lender in regards to how much they’ll need to save for a down payment, and when doing so, they should consider the market in their location. “You’ll probably want to save extra in case you need to cover an appraisal gap, which is the shortfall between what a house appraises for and the agreed contract price,” Wordelman advises. Top-performing California agent Rick Fuller says that prospective buyers really need to understand their budget before they start looking at homes. “There’s nothing worse than finding a property you love, but is above your means,” he says. “If you find a home and it’s not in your budget, you end up disappointed in every subsequent house you visit.” When housing inventory is short (which it is in many markets), you will likely face competition from other buyers. Knowing this, Wordelman suggests that buyers probably should not shop at the very top of their budget. “If you are approved for up to $450,000, I recommend shopping for homes between $350,000 and $425,000,” says Wordelman. “In many areas, homes can go for above asking price, and you’ll want to have that cushion.” She adds that each market can be different, but reiterates what several of our top expert agents have recommended: “Appraised values are coming in short in many markets, so you should be certain to have a buffer in your down payment to cover any potential appraisal gap.” While an agent should create a fairly exhaustive search for prospective buyers, Wordelman says that one thing they sometimes overlook is opening up searches to MLS systems that might be right on the edge of where you want to buy. “If your area is on the cusp of a second MLS system, make sure your agent prepares searches using both regions,” she says. “As a buyer, you might want to look at places that are just outside the immediate area, and your agent should do this for you.” “If you end up having an appraisal gap, it can be helpful to know sooner than later,” Wordelman says. “The seller does not have to lower their price, and you don’t necessarily have to bring in more cash than you offered. Remember, closing isn’t over until the funds are received, so this is the time to negotiate.” You’ll want a top agent in your corner who can spot value potholes that may be forming on the road ahead. Both Fuller and Wordelman stress the importance of choosing an agent who knows your area and the local market. “An agent should be knowledgeable about things like property taxes, HOAs (homeowners associations) in various neighborhoods, schools, everything pertaining to your area’s market,” Fuller says. He adds that a good agent will also have a handle on “properties that aren’t quite on the market yet,” in addition to “properties that were on the market and didn’t sell for whatever reason…it’s possible for us to have a conversation with the seller if we have an interested buyer.” When trying to decide on an agent, take advantage of the resources offered online. “Take a look at online reviews,” says Fuller. “Read the reviews of that agent in order to better determine if they will be a good fit for you. Also, look for companies that are recommended by third-party endorsements, or agents who have won awards for quality of service.” Selecting a knowledgeable local agent is, of course, an important part of the home buying process, but you also want to know they will really be there for you. “Agents need to be available to their buyers,” says Wordelman. “They should be responsive to your calls and texts, and remain connected throughout the process.” Wordelman adds, “An agent who has been working in a specific market for a long time and has a good reputation can go a long way toward getting your offer accepted.” Fuller notes that buyers who choose agents who are part of a real estate team often have a more streamlined experience. “Everyone goes on vacation, gets sick, or may have to take leave,” Fuller says. “When you go with an agent who is part of a team, even if your agent isn’t available, there will always be someone who can help you.” Is a Realtor team right for you? Fuller says that both buyers and their agents should understand that when it comes to making a good offer, price matters. “It’s not the only factor, but it is very important,” he says. “Most sellers are going to select the highest price offer, and in a multiple-offer environment, you’re going to have to pay more than the list price.” “In every market, a reputable agent is going to understand how much a house price goes up with each additional offer, and will be able to write an offer that is best for their buyer.” Wordelman adds that your agent should also be contract savvy and keep you well informed. “Make sure you know what deadlines there might be in the contract, so you know at what point your earnest money can’t be recovered,” she says. Fuller often advises his clients to consider negotiating certain repairs, as opposed to just asking the seller to pay. “One way is to ask for a price reduction, which could mean a lower loan amount for the buyer and lower property taxes,” he says. “A buyer could also ask for a closing cost credit, which can offset closing costs.” “There could also be items on the property you might like to acquire as the buyer, such as furniture or appliances, and you could request those be part of the sale in lieu of repairs.” Wordelman adds that it’s important to write a clear and concise request in regard to any repairs you want to be done prior to closing. “Vague or ambiguous requests could be waiving what you really want,” she says. “You don’t get to ask for more once you sign off on the inspection, so be clear on what you expect.” Mckenna-Inman says that buyers should review all receipts for any completed repairs, primarily to verify that they were done by a licensed professional. “I always want to see proof of who did the work,” she says, “especially with things like electrical or plumbing. You don’t want some friend of the seller, who might not be licensed or know what they’re doing, to be making repairs on the home.” Agent Richard McKinney, who is based out of Florida and has 25 years of experience helping buyers find the right home, says that a big part of negotiating with the seller is knowing what is important to them. “The seller often has concerns that go beyond the price of the home,” he explains. “Your agent should find out if there are other things they want, such as if they need to sell fast or prefer a long closing, or if they would consider a lower offer for a cash deal that closed fast. Asking what is important to the seller should be the very first thing your agent does prior to making the offer.” McKinney says that no matter how qualified you think you are, making sure you have your preapproval letter is very important. “I see so many offers come across my desk without pre-qualification letters,” he says. “A seller needs the comfort of knowing the buyer is serious and well-qualified.” If you are a first-time homebuyer, you’re most likely among the 85% of buyers who need to apply for a mortgage because you’re unable to buy a house with cash. As a new home shopper, You may not realize how many loan options are available to you. McKinney urges his buyer clients to shop around for the best loan terms possible. The type of loan you choose can make a big difference in the cost of your mortgage. If you’re a second-time home buyer, you probably have equity in your current home. Talk to your agent and your lender about your options to unlock your home equity. See our final bonus tip below for a modern, innovative way to Buy Before You sell. Whether you are a first- or second-time homebuyer, It can be helpful to check the U.S. Department of Housing and Urban Development’s (HUD’s) local home buying programs resource page to find locally sponsored programs. As the HUD site explains, “In addition to HUD’s mortgage insurance programs, there may be programs sponsored by your state or local government or other organizations. You can start by selecting the state that interests you.” Wordelman advises double- and triple-checking to make sure funds were wired in advance; otherwise, your closing might be delayed. “Where I live, we fund at the table,’’ she says. “That is the day everything happens.” And if your title company requires a cashier’s check, make sure you get that at least a day before closing so you have it with you the day of the big event. This is an important detail that, if not considered, can stain your entire home buying experience. Massachusetts agent Laura Mckenna, who has nearly 40 years of experience, recommends that buyers follow their instincts during the house-hunting process. “Go out to lunch in the town, visit the library and schools, drive around the area,” she suggests. “It’s not just about the numbers. There’s an instinctual feeling one gets about a town, neighborhood, or house.” For second-time homebuyers, there are real estate solution companies like HomeLight that offer modern, integrated programs that streamline the process of buying and selling a house at the same time. These “Buy Before You Sell” programs provide a convenient bridge to help you successfully complete your move to a new home — significantly simplifying the transition and reducing anxiety. If you have equity in your current home, a Buy Before You Sell program may be just what you are looking for. Here is how HomeLight’s Buy Before You Sell program works: At HomeLight, we’re happy to lend a guiding hand in navigating your home shopping journey. Let us help you make an informed and confident decision about which agent is best for you. HomeLight’s Agent Match platform can connect you with the top buyer agents in your desired city. For more great tips and to start planning, see our post: How to Buy a House in 12 Steps, and Know if You’re Ready4 expert tips before you shop for a home
Tip 1: Start planning early
Tip 2: Consider amenities and your commute
Tip 3: Be prepared to tackle a low appraisal
Tip 4: Save more than you think you’ll need
4 expert tips when shopping for a home
Tip 5: Shop knowing how much house you can truly afford
Tip 6: Don’t shop at the top of your budget; hang just below it
Tip 7: Shop on the edge of your location boundaries
Tip 8: Know the appraisal value sooner than later
4 expert tips to get the best agent
Tip 9: Hire a local agent for more results and less surprises
Tip 10: Vet your agent and get recommendations
Tip 11: Select a responsive, accessible agent
Tip 12: Consider if you’d prefer a Realtor team
4 expert home buying negotiation tips
Tip 13: Be strategic with your offer price
Tip 14: Know when to negotiate repairs
Tip 15: Ask the seller for repair receipts
Tip 16: Be familiar with the seller’s goals
4 expert financing and closing tips
Tip 17: Get preapproved for a loan
Tip 18: Shop for the right loan type
Tip 19: Shop for buyer assistance programs
Tip 20: Be certain funds get wired on time
2 bonus expert home buying tips
Tip 21: Explore the neighborhood, not just the house
Tip 22: If buying and selling, use a Buy Before You Sell program
Conclusion: Partner with an expert to buy with confidence
