Once you have made the decision to buy — whether you're down-sizing, upgrading, relocating, or becoming first-time homeowners — you'll want to take some initial steps to smooth out the process: choose a realtor, get pre-approved, refine your search and start touring homes!

Choose a Realtor

Real estate agents advocate on behalf of their clients while guiding them through all steps of the home buying process. They can also be valuable resources for finding other licensed professionals including loan officers, inspectors, closers, contractors, and more. Realtors get paid for their services via commission which is typically a percentage of the final sale price, most often paid buy the seller upon closing (though this may change as the industry changes.) A seller-paid commission usually gets split among all agents and brokers assisting in the sale of the home.

Many brokerages charge buyers retainer fees (though we at Lynden Realty do not.) This is a flat fee written into the buyer contract paid regardless of a sale, typically between $200-$800. When signing contracts for representation be mindful of negotiable items, admin fees included, and don’t be afraid to ask questions.

How do you choose a Realtor? Start by asking trusted friends and family. Most often people get connected through referrals. If your friend or family member had a good experience working with someone, you might too. Depending on your process, you may be spending a lot of time with your agent, so choose someone you like and trust. Communication is also key. Your agent should be conscientious about communicating and skilled at using multiple means for connecting with you and other professionals involved in the transaction.

Get Pre-approved

If you want to make an offer on a house (and plan on financing it) you will need to get a pre-approval letter, at the very least. Getting pre-approved differs from being pre-qualified in that it requires more than simply applying for the loan. Pre-approval involves an in-depth analysis of your financial background including credit history, employment verification, assets, etc. The process will provide you with a more realistic picture of what your interest rate and payments might be, and will help determine in advance how much house you can afford.

Sellers will favor pre-approved buyers who demonstrate their ability and intent for successfully getting the loan. Most won’t entertain offers without this bank letter, especially in a seller’s market. A strong pre-approval from a reputable lender is an important piece that will put you at an advantage over competing buyers. It's best to get it done ahead of time to avoid a delay when submitting an offer and possibly losing out to other qualified, and more prepared, buyers.

Refine Your Search

An infinite number of factors can help determine your needs and wants when buying a home. Common considerations include things like schools, commute time, space, walkability, neighborhood preferences and of course price. You may also be deciding between a single-family home or condo/townhouse. Make a list of what you're looking for — decide what you can't live without, what might be a deal breaker, and what won’t.

Once you've narrowed your focus and established parameters, you can more efficiently make use of online tools to help with your search. Realtors subscribe to the local MLS database (the most up-to-date resource for finding properties) and can easily create automated searches using your criteria which enable you to receive email notifications of new MLS listings as soon as they become active. Searching on your own can be fun, but the MLS auto emails are an easy and more accurate way to stay up-to-date (I’ve seen Zillow take 4 days to update changes in my listings!) Your search criteria can be easily tweaked at any time if your preferences change. You can also tag properties you love or want to know more about, and direct message your agent with questions directly through the interface we call “The Portal”.

Tour Homes

Finding a home often begins with browsing online and driving through neighborhoods to get a feel for what you want and what's out there. The next important step involves actually getting into a home. You can do that a couple of ways — through open houses and private showings.

Open Houses

If you tour a home at an open house it's important to understand that the agent holding the open will be representing the seller (or working on behalf of the seller's agent) so be careful about revealing too much if you’re seriously interested in the home. That agent will most likely pass along your comments directly to the seller. If you end up making an offer later, the revealed information could become detrimental in negotiations. Your price, terms and motivations should only be shared with an agent representing you as a client. (More on agent representation here.)

Also, you may be asked to sign in at an open house. In general, it's a good idea to just tell the seller's agent you're already working with another agent, if that's the case. (If you are working with me to find a home and are required to sign in, feel free to indicate your representation by including my name, phone number or email on the sign-in sheet.)

Private Showings

Another great way to see homes is through private showings with your real estate agent. You can set up single showings or multi-home showing tours to fit your schedule. Occasionally a 24-hour notice may be required to view a home, but I have often gotten clients in that day, or very close. If a home is vacant, a showing request might be automatically approved, requiring no prior notice. “Buyer tours” can also be created when you want to view several houses at once. Setting aside a few hours to tour a half dozen houses is efficient and can be especially helpful for making comparisons among similar properties.

Once is often not enough. Second and third showings of homes are not at all uncommon. Clients sometimes want to return with family, friends or contractors to get second opinions, cost estimates on projects, feedback, etc. If there's time to do so (with no known competing buyers), it's a good idea to take another look, just to be sure.

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.