If you’re out shopping for your first home in MN, make sure you take this advice with you, in order to avoid the mistakes others have made.
1. Understand Who the Listing Agent Represents.
In most cases, the Agent hosting the Open House is a representative of the Seller–which means they have a legal obligation to help the seller get the most amount of money, and best terms for the sale of the house. In other words: they are not there to help you! While sharing information about the features and benefits of the property is in the seller’s best interest, the agent does not have an obligation to give you advice, or highlight any drawbacks to the house. So, don’t assume they will give you extra tips on how to get a “good deal” if you’re interested in buying the home.
2. Be Careful About What You Share.
Because the listing brokerage is only obligated to help the seller, it’s very important that you don’t overshare information about yourself, even if the agent asks pointed questions. Many times, the host agent will ask you your budget, when you’re wanting to move, and if you’ve been pre-approved for a mortgage yet. These are all fair questions, however you have no obligation or reason to answer any questions they ask. You can simply respond with, “I’d rather not say due to personal privacy,” and leave it at that. It’s also true that some agents will want to gain you as a client themselves, so by asking these questions, they’re vetting your readiness and willingness to buy. But again, you have no duty to disclose any of that information to them while walking through an Open House.
3. Get Preapproved Before You Start Shopping.
Some first time homebuyers in Minnesota will attend a few open houses before doing through the loan approval process with a Mortgage Lender. This is fine, but be careful not to get too set on a certain neighborhood or particular house before you know for sure what your financial status is. Falling in love with a specific floor plan or price point can be dangerous, because emotions run high during the home-searching process. This is why I’d always suggest getting approved with a trusted mortgage officer, and run all your numbers before getting hardcore invested in a property.
4. Look Beyond the Staging and Decorations.
Yes, the sexy cool stuff can be enticing in the house. But make sure to pay attention to the “big ticket” items like the age and condition of the roof, the siding, the foundation, the age of the furnace and air conditioning, and the overall layout. Sometimes a nice kitchen counter top can distract you from a poor bedroom layout, or steep staircase to the basement. Many items in a house can be updated and improved, however some things cannot. Make sure to focus on the “unchangeable” facets of the house, rather than the nice pretty paint colors.
5. Ask Questions and Take Notes.
You should also consider asking questions about the house, the neighborhood, how long the home has been for sale, and if there are any offers or deadlines. Sometimes the agent will share extra information about the home which can either improve it’s value in your mind, or help you exclude it from your consideration. Don’t be afraid to probe into aspects or items you have questions about, especially if certain areas are not able to be seen during the open house, like the attic or a detached garage which may be locked.
6. Explore the Neighborhood, Not Just the House.
After you’re done touring the house, take 2-3 minutes and drive or walk around the area. Sometimes you can find a nice house in a bad neighborhood. These properties should be avoided, as it’s much hard to get a good value on resale if the surrounding area is not as desirable as your individual home.
7. Don’t Let Emotions Drive Your Decision.
And lastly, try to keep a level head, and don’t let your emotions get the best of your judgment. A house is a place to live, and while some items in and around the house may make it worth “over-spending”, you need to remember that not everyone will place value in the features that you like. So don’t let your heart make decisions that your brain or wallet can’t justify later on.
By thinking of these tips before you head out to your next Open House in MN, you should be in great shape to buy your first home.
Looking for more complete info on the process? Sign up for one of our First Time buyer Classes and get step-by-step instructions on how to win in the housing market! We hope to see you there 🙂
