7 tips to help you find your first home

Key Insights

• Finding the right home can be complex. Don’t rush into your home purchase.
• Your REALTOR® will be your advocate from the start of your search until the closing table, so make sure you’re compatible!
• Determine your must-have home features while maintaining an open mind when viewing new properties.

The process of buying a home can seem daunting, especially when you’re competing with other buyers who are also trying to stand out in a seller’s market. Knowing what to expect and having the right Realtor by your side will make all the difference when it comes time to make an offer. To prepare, first-time buyers should take special care to prep their finances so they can move quickly when they find a home that suits their needs.

Here are seven tips to help prepare first-time homebuyers like you for today’s competitive market.

1. Take your time

Buying a home will likely be the biggest purchase of your lifetime, so it may take time to find the right home for your budget and lifestyle. And while you may get lucky and find your dream home (and also get an offer accepted) immediately, you should be prepared to spend several months searching for and closing on a home. The buying process includes these essential (and sometimes time-consuming) steps:

• Organizing your financials
• Working with a mortgage consultant to get pre-approved
• Hiring a Realtor
• Researching and touring homes
• Making offers on properties
• Negotiating your offer
• Getting an offer accepted
• Closing on a house

2. Gain financial footing

Financial experts recommend that you shouldn’t spend more than 28-33% of your total income on housing, but the numbers vary for each person and lifestyle.

When determining how much you can spend on your first home, begin by checking your debt-to-income ratio. This number estimates your ability to pay your mortgage (and other housing costs and recurring bills) when compared to your income.

Why is this necessary? Well, two potential homebuyers who draw the same annual salary (say, $60,000) may have significantly different recurring monthly payments and debts to pay down. One may be able to pay the mortgage on a $300,000 house, while another may wish to stay in the $240,000 range due to recurring payments on student loans, child support or other bills. While it’s smart to keep your housing payments below 28% of your income, knowing your debt-to-income ratio will help you make an even smarter budgeting decision.

3. Hire the right REALTOR®

Hiring a Realtor is an ultra-important step in the buying process. Agents help potential homebuyers in every market, but they are especially important when buyers need an advocate in a competitive market like we have today.

Since your Realtor will be with you through every step of the home purchase process — which may be slightly longer than usual given the current atmosphere — it’s important to work with someone you trust and are compatible with. Before committing to a Realtor, be sure to ask your potential agent about their experience, availability, and more using these five questions.

4. Enjoy the hunt

Whether you search on EdinaRealty.com or our MyAtlas at Edina Realty mobile app, you’ll have access to homes for sale across Minnesota, western Wisconsin and southwest Florida. You can search, save and share properties that best fit your criteria.

5. Determine your must-haves

Unless you’re an extremely decisive person, you’ll likely find yourself falling in love with many of the homes you tour. While it may seem challenging to narrow down which home styles, features and locations you like best, this is actually a good thing. In today’s competitive market, it may be necessary to keep your mind open to a variety of home options.

Work with your Edina Realty agent to sift through which home features are just “nice to have” and which are requirements for your first home so you don’t end up with buyer’s remorse. Keep in mind, too, that some qualities can change. While a neighborhood’s walkability or proximity to the highway is set, you can always tear up old shag carpet and put in wood floors.

6. Start touring and remain cautiously optimistic

Now that you’ve established your list of essential home needs, it’s time to attend in-person home showings. Today’s market is competitive, so it’s best to prepare for a few lost offers before you end up at the closing table. When you find a home that you’re interested in, be ready to:

• Make a fast offer (generally your best and highest).
• Compete in multiple offers.
• Potentially lose a home (or two, or three) before an offer is accepted.
• Have lots of patience, especially if you are buying at a lower price point.

7. Ask your agent about pre-list properties

When you work with an Edina Realty Realtor, you gain access to a large network of 2,000-plus agents and the properties they represent. That means you can find out about homes that might fit your criteria before they are even ready to come on the market.

When housing inventory is tight, having a large network of connections can increase your options and provide an expanded search. Take advantage of this network when searching for a home.

Find your first home!

If you’re as excited as we are about finding a home in Minnesota or western Wisconsin, reach out to Edina Realty or your agent to begin your home search today. It’s a great time to start looking for your home – and with this