Welcome to our first-time home buyer guide for Pennsylvania and New Jersey! As you embark on this exciting journey, it’s important to understand the benefits of working with a Buyer’s Agent when buying your first home.
First and foremost, a Buyer’s Agent is a licensed real estate professional who is dedicated to representing YOUR best interests throughout the home buying process. From finding homes that fit your criteria to negotiating on your behalf, a Buyer’s Agent is there to guide you through every step of the way. And the best part? You don’t pay a dime for this service since all agent commissions are paid by the seller, after the home sale. Just any agent that shows you a home isn’t necessarily a Buyer’s Agent who represents your interests. A Buyer’s Agent will sign a contract with you saying that they work for you directly and once this contract is signed they are required to keep everything you tell them confidential and act solely on your behalf.
But what if you choose not to work with a Buyer’s Agent? Well, the truth is, you could be missing out on a lot. Without a Buyer’s Agent, you may find yourself working directly with the Listing Agent whose job is to sell the home for the highest price possible – not necessarily what’s best for YOU. Additionally, you may miss out on potential homes that are not listed on public real estate websites or in the multiple listing service (MLS). Plus, a Buyer’s Agent can help you navigate the often complicated and confusing home buying process with ease and explain the real estate contracts to you so you know what you are agreeing to when you sign your name on one!
Now, let’s dive into the home buying process, starting with Step 1: Determine Your Budget. The best way to do this is by reaching out to a mortgage loan officer who can determine what the maximum home price is that you could be financed for. This is important because it’s not uncommon for potential home buyers to assume they can afford much more home than a bank will qualify them for. This is usually due to student loan payments, car payments, and other debt they have in relation to their income.
In Pennsylvania, it’s important to note that the real estate transfer tax for buyers and sellers is usually 1% in most counties and 4.278% in Philadelphia. The transfer tax is similar to a sales tax as it is based on the sales price of the home. The buyer and the seller usually pay the same amount of transfer tax in a transaction. This is something to keep in mind when determining your budget.
Step 2: Find the Right Neighborhood. When looking for a home, it’s important to find the right neighborhood that fits your lifestyle and needs. A Buyer’s Agent can help you with this by providing valuable insights into neighborhoods that fit your criteria. They can also give you a better understanding of the local real estate market and help you find homes that fit your budget.
Step 3: Start Your Home Search. Once you’ve determined your budget and the right neighborhood, it’s time to start your home search! A Buyer’s Agent can help you find homes that fit your criteria and schedule showings for you. They can also negotiate on your behalf once you find the right home.
Step 4: Make an Offer. When making an offer, a Buyer’s Agent can help you determine the right offer price based on comparable sales in the area. They can also help you navigate contingencies in the purchase contract, such as a home inspection contingency, mortgage contingency, and appraisal contingency. Contingencies offer additional protection when buying a home, but in competitive situations with multiple offers on a house they can make your offer less attractive to a seller. Your agent should be able to explain to you the risks involved with waiving contingencies and let you decide what you are comfortable with. Everyone’s situation is different and an offer that makes sense for someone else might not make sense for you. There are many factors to consider and a good agent will be there to guide you through it and offer professional advice.
Step 5: Home Inspection. After your offer has been accepted, it’s important to have a home inspection done. A Buyer’s Agent can recommend reputable home inspectors and will attend the inspection with you to ensure everything is done properly. In Pennsylvania, it’s common for the buyer to have a home inspection contingency in the purchase contract, while in New Jersey, it’s required by law to have a home inspection contingency. However in Pennsylvania buyers can terminate a contract for anything that comes up during a home inspection, no matter how small. In New Jersey it is more difficult for a buyer to terminate based on the results of a home inspection.
Step 6: Close the Deal. Once the inspection has been completed, it’s time to close the deal! A Buyer’s Agent can help you navigate the often complicated closing process, ensuring that everything is done properly and on time so that you walk away from the settlement table with the keys of your new home in hand!
Working with a Buyer’s Agent who has agreed to represent your interests can make all the difference when buying your first home. From finding the right neighborhood to negotiating on your behalf, a Buyer’s Agent is there to guide you through every step of the way.
Leave a Reply