Diving into online listings without a plan is easy to do and surprisingly unproductive. You end up falling for homes that do not fit your needs, and some of them may already be off the market. Worse, the time you spend chasing the wrong properties can give another buyer the chance to grab the one that is right for you. A little preparation before you start browsing makes the whole search faster and far less frustrating.
1. Selling First? Get That Process Moving
If you need to sell your current home before buying, put that at the top of your list. Get the house ready, hire a Realtor who is a good fit and find out what your home is worth. To give yourself more flexibility, consider making offers with a sale contingency, an extended closing or a settlement contingency.
Tip: If your ideal home turns up early while you are still selling, a Home Equity Line of Credit (HELOC) may be able to cover your down payment, provided you qualify.
2. Nail Down Your Budget
Those online affordability calculators that simply divide a home’s price by an average mortgage are not very helpful. Your rate and loan term may be different, and there are other costs to consider, including private mortgage insurance (PMI), homeowners insurance, repairs and possibly HOA dues. Here are better ways to find your number.
The debt-to-income approach
Total your annual income and divide by 12 to get your monthly income. Subtract your average monthly expenses, leaving out rent. Half of what remains is the most you should plan to spend on a monthly mortgage payment.
The down payment approach
A conventional mortgage is often the best choice because it lets you avoid PMI, which usually kicks in when you put down less than 20%. For example, a $60,000 down payment would support a $300,000 purchase.
Adjusting for market conditions
In a buyer’s market, sellers may entertain offers below the asking price. In a seller’s market, you may need to offer more than asking. Adding 5% to 10% to your target price gives you a sensible upper limit.
Tip: Use an uneven number as your maximum in search filters. Setting your cap at $309,000 rather than $300,000, for instance, can surface homes that have had price cuts, such as listings at $303,000 or $307,000. You can often bridge that gap by asking for repairs or closing cost credits.
3. Get Prequalified or Preapproved
Prequalification is fast. You share your income, credit score, monthly debts and the price range you have in mind. Sellers tend to view prequalified buyers more favorably because they represent less risk. I am happy to recommend lenders if you need one.
Preapproval takes a little longer. You submit documents such as pay stubs, tax returns and information about your assets, and the lender verifies everything. If all checks out, you receive a preapproval letter, which gives your offer the best possible chance of being accepted.
Once you are ready, partner with a Realtor you trust. A good agent can set up showings quickly and send you listings that match your criteria, sometimes before they are publicly available.
4. Narrow Your Neighborhood List
Where you live affects your commute, your social life and your day-to-day routine. A quiet suburb may offer fewer things to do than a downtown neighborhood, while a downtown location might mean a commute that eats into your free time. Be honest about what matters most and weigh those priorities. Then look up the zip codes for the areas you like, since clickable map search tools are not always reliable.
5. Start Browsing
Most listings come from your region’s Multiple Listing Service, or MLS. That same data feeds my website as well as big sites like Zillow, Trulia, Realtor.com and Redfin. Create a free account on whichever site you prefer so you can save homes and get alerts for your price range and neighborhoods. Filter by price, zip code, bedrooms and bathrooms, and limit results to homes currently for sale so pending and sold properties do not clutter your search. I also share listings on Facebook, so that is another place to watch. You can search by area, price, bedrooms, bathrooms and more directly on my website.
6. Look Beyond the Pictures
Listing photos vary widely in quality. Some are so heavily edited that shadows look blotchy gray and blues look unnaturally bright. Others are too blurry to tell you much. Focus on what you can see clearly, such as windows, doorways and views, because those clues reveal the floor plan.
Give the most weight to things that are hard to change: natural light, the shape of rooms, where outlets are located, the heating system and vents, and the kitchen layout. Flooring, light fixtures, appliances and cabinets are much easier to update. The exception is if your budget is tight. In that case, homes with features you can live with or fix yourself may be worth a look.
7. Do Some Homework Before You Visit
Most search sites display a home’s price history, past sales and tax records. Watch for signs of a flip: a recent low-priced sale within the past three to six months followed by a listing at a much higher price. That is not automatically a problem, but a quick turnaround paired with brand-new finishes in an older home can point to a lower-quality renovation.
The map view is useful too. Check:
- Which direction the house faces, since that affects natural light and energy costs
- What points of interest are nearby
- Whether busy roads are close by, particularly cut-through routes or streets near schools that can bring traffic
- How the neighborhood looks and feels, using Google Street View
With this research done, you can trim your list down to a handful of homes worth seeing.
8. Book Your Showings
When you have picked the homes you want to tour, you can request showings through my website. If one of them looks like it could be the one, contact me before scheduling so we can move faster. I take care of reaching out to listing agents and setting up appointments. Just send me your shortlist ranked by interest, along with the times you are available.
Want More Help?
I have plenty of resources on buying and selling, including a full buyer guide. If you are ready to start your search or have questions along the way, reach out and I will help you find a home that truly fits.