Jason Fox Discusses 3 Things To Think About When Buying a Home

Jason Fox of The Madrona Group real estate team discusses 3 things you should be considering when buying a home.

We know when you start thinking about buying a new house it can get a bit overwhelming, especially if you are a first time home buyer.  Even if you have purchased before the market has probably changed since your last transaction.  It is our goal to make the process less stressful.

3 Factors

1. Location
2. Condition
3. Price

Location is more than just Washington, the Puget Sound Area or even Seattle.  It is what neighborhoods are you considering?  What School district do you want to be in?  What kind of shops and restaurants do you want to be near?  What parks would you like to be close by?  What areas are not acceptable?  Is there a complex or subdivision you would like to be in?  Do you need to be close to work or close to a family member? Do you want to be on or near the sound, a lake or river? Do you like urban, suburban or rural living?

Condition can be broken down into 5 general levels:

1. New Construction
2. Fully Updated or Remodeled
3. Move in Ready
4. Fixer-Upper
5. Tear down or Investment Opportunity

Having a good idea of what condition you are trying to buy will save you hours of looking at homes that do not meet your needs.

Price seems obvious but it is the factor that people seem to be the least confident in.  When you meet with a lender you will get pre-approved for an amount.  This is the top price that you can spend according to the underwriting standards of that bank.  Using your income, credit score, interest rate, down payment, loan program and debt to income ratio. After all is said and done this will yield a monthly payment that you can afford to pay every month.

You will not be able to spend more than that amount, unless you increase your down payment.  You can, of course, spend less than you are approved for.  Either way it is important that you know what amount you are comfortable with as you start looking as the buying process can move very quickly.

Things To Consider When Buying Summary

This list of 3 important things to consider when buying a home are directed at the beginning of the home buying process.  These 3 factors help us locate the perfect home.

• Location
• Condition
• Price

Of course there is much more that goes into buying a house.  Here are some additional resources that you will find useful:

• How to Buy A Home
• Home Buying Tips From Experts
• Buying A Home Contingent
• What To Expect During Closing
• Buying a House With No Down Payment Or Closing Costs
• Is 20% Down Necessary

Or you can take a look at our questions to ask a real estate agent for more resources.

3 Important Things To Consider When Buying a Home Video Transcript

00:04
What should buyers consider when they’re
00:07
thinking about buying a home? We
00:09
think there are 3 important things to
00:12
consider when thinking about buying a
00:13
home and that’s; location, condition and
00:17
price. Location is maybe a little bit
00:26
more complex than just what city are we
00:28
looking to move to. Would we like to be
00:32
close to parks, would we like to be in a
00:35
certain school district, is there a
00:37
particular neighborhood vibe that we’re
00:39
trying to capture? With location comes
00:43
different pricing you know so we kind of
00:46
have to weigh the pros and the cons or
00:49
our wants and our needs. Oftentimes when
00:57
we ask clients about condition they’ll
01:00
mention that they wouldn’t mind putting
01:01
in a little bit of elbow grease maybe
01:03
doing some carpet and some paint. Then we
01:07
go look at a couple of houses and one
01:09
will be freshly updated with all-new
01:12
countertops and appliances and flooring
01:14
and then we’ll walk into a home that
01:16
hasn’t been updated and they’ll
01:18
say something like, “I don’t know I just
01:20
like that first one a lot better”. Start
01:22
thinking about what kind of condition
01:24
you’d be okay with when you make your
01:26
home purchase.
01:27
Price is going to be very important. In
01:34
the market that we’re currently in we’re
01:37
seeing oftentimes homes that are getting
01:41
multiple bids and the pricing is being
01:44
brought up a little bit. There are
01:46
strategies for trying to get a better
01:50
price in the market that we’re currently
01:52
in such as looking for homes that have been on
01:55
the market a little bit longer than four
01:58
to seven days. Negotiation is a big part
02:01
of what we bring as a real estate team
02:03
so Joe and I will make it a priority to
02:07
negotiate the very best price for the
02:10
home that you choose.
02:11