Maybe now is just the right time to buy your first home

At the start of a new year, it is natural to think about “firsts.” And an exciting one is the purchase of your first home.

Yes, it is a significant decision. It is a decision you should view from several angles. And as with anything of importance in life, you do need to be well-prepared.

A crucial first step is to find an expert, a REALTOR®, who is the right fit for you. This means finding someone with experience, especially if you are buying in an area where multiple offers above the list price are the norm (and yes, even in the winter this is still happening in all areas of the city).

It is competitive out there, but your odds are better if you connect with the right REALTOR® and do your homework.

Here are some other things that could help you with your journey:

Make sure you are preapproved for a loan. If you’re not preapproved and someone else making a bid is, guess how that goes?

Consider a fixer-upper. If your budget is tight, this may allow you to get more home in a competitive area. Also look into the FHA 203(k) loan which combines the money needed for the loan and to make needed repairs.

If possible, be open to multiple neighborhoods to increase the chances of coming across a good deal. If you don’t feel like you know the whole city, your REALTOR® can give you the grand tour. Metro Memphis has a lot of great places to live.

Too often, however, buyers start off believing that they must live in one specific neighborhood. I get it, but this can be self-limiting. Upon touring the city more extensively, people find that there are a lot of places where they could be happy and an acceptable distance from work or the children’s school.

Neighborhoods in transition can also be a place to find more bang for your buck. Basically what it comes down to is you are ahead of the curve instead of behind it. As with the stock market, buy-low/sell-high is a good equation.

Another option is to take another look at your budget. Let’s say that you initially decided you didn’t want to pay more than $225,000 for your first home. And the more you look, the more you find that the homes that work best are just beyond your reach – priced at around $250,000 to $275,000. If that happens over and over, you might be better off long-term to make budget cuts elsewhere to get the home you really want.

So, ask yourself some tough questions: Could you delay that vacation or car purchase? Could you eat at home more and dine out less? During a pandemic, this one should be easy. Same with cutting back on entertainment options such as concerts and sporting events.

Lastly, even though you did your due diligence and got pre-approval from a lender, sometimes you need to return to the lender and get more creative.

The good news is that you have options. And Memphis is a way cool place to own a home and put down roots.

Find the right REALTOR® and I’m confident you can find that first home that makes you happy.