Clarity Is A Must!
For a home buyer, having the clarity to know exactly what to look for will result in a hassle free home shopping experience. There are 5 aspects to the home shopping process that a buyer must be clear on.
1) Clarity of Purpose
2) Clarity of Time Frame
3) Clarity of Affordability
4) Clarity of Location
5) Clarity of Living
Clarity of Purpose
Having a purpose or ultimate goal to owning a home is the first step to clarity. Buyers must have a purpose for wanting to purchase real estate because without a purpose there is no plan. Owning real estate is all about the future of its power to shape the future. Benefits of home ownership such as raising a family, education for the children, investment opportunity, building wealth, and even retirement are some examples of a purpose a buyer may have.
Clarity of Time Frame
To know exactly when to purchase a home is the next step to having clarity because only then will a buyer prepare accordingly to their goals and future plans as a homeowner. Different situations will dictate the time to search for real estate. For example, a market that benefits the buyer or when interest rates are low. Other circumstances such as improving one’s credit or finding the ideal home to raise a growing family can bring the clarity to properly plan ahead. Preparation is key and a big aspect of knowing one’s time frame is to know exactly how much one can afford when buying a home.
Clarity of Affordability
Knowing exactly how much a buyer can afford is the third step to have clarity for purchasing a home. Some buyers have the misconception about being pre-qualified vs. becoming pre-approved for a home loan. Being pre-qualified gives a buyer “an idea” of what they can afford while being pre-approved will provide the buyer the “fact” of exactly what they can afford. Once a buyer is pre-approved, then they will have a clear picture as to what neighborhood they will conduct their home search.
Clarity of Location
Once a buyer has clarity on what they can afford, they will then be able to focus their home search in specific locations. The real estate market in the Los Angeles area has multiple personalities. What I mean by this is that prices in various neighborhoods will vary depending on whether it’s a buyer’s market or a sellers market. A buyer’s market means that there is high inventory of units (real estate property) and low demand to purchase. A seller’s market is the opposite; low inventory with a high demand to purchase. Some markets in certain locations remain steady and don’t fluctuate. Having such clarity means that if a buyer was to place an offer to purchase a home, their offer must be realistic for that market area. Presenting an offer to a seller under asking price during a seller’s market can result in either an unaccepted offer or a bidding war for the best price among other potential buyers. This is one of the primary benefits of hiring a Realtor because they negotiate the best possible price for the buyer they represent. In addition, the education and knowledge a buyer will receive from a Realtor will only help them get closer to the home that is perfect for them.
Clarity of Living
Having the clarity of how a new homeowner would like to live is a very important aspect of the home buying process. The lifestyle, convenience, and amenities a home can bring will surely affect the quality of life for that owner. Specific questions must be asked to gain the clarity of the type of home a buyer wants. Certain features of a home are must haves and some are not. I always suggest for a buyer to have 5 must haves when looking for a home to purchase. Generally interior features, architectural features, external features such pool, views, landscaping, the condition of the home, and the size of the home all can bring the clarity a buyer needs in order to find the home that they want to own.