or even just dreaming—of buying your first home, a few tips and trends may prove intriguing. According to the National Association of Realtors, home prices are up and accelerating because there are more buyers than homes for sale. Here are three tips for firsttime buyers looking to purchase in this seller’s market: Know your budget and stay within it: Before you start shopping, find out what you can afford with a preapproval from a lender so you know how much money you can borrow. When determining your budget, consider the other costs of home ownership, including taxes, insurance andutilities. Whenlistings are scarce, home prices tend to rise as bidding wars drive them higher. Don’t get caught up competing against other buyers and counteroffering above what you can comfortably afford. Winning a bidding war could feel like losing if you end up spending above your means. Stay patient and walk awayif the price surpasses your budget. Identify needs versus wants: No homeis perfect and many people have to compromise on features when buying an existing home. At the same time, you don’t want to end up settling for a house you don’t love. Separate and maintain your focus on what you really want in a home against what you can live Finding the home of your dreams may be easier—evenin a seller’s market—with help from Realtors. with (or without). A homein a certain school district or close to your job most likely falls into the former while a kitchen with a fancy backsplash is something you can add at a later date. Work with a Realtor who knows the area: When housing supply is tight, an attractively priced home will likely draw multiple offers. Find a Realtor with experience serving clients in your desired area. He or she can provide invaluable market information, including how fast homes are selling and for what price. A Realtor can also help you with a negotiation strategy to make youroffer stand out. To find one, go to www.realtor.com/realestateagents and enter the zip code of the area where you wantto buy. Buying a homeis arguably the most important financial decision you'll makein yourlife. Working with a Realtor and following this advice can give you the advantage you need.
