Ok I found the home I want but, now I am confused on how much I should offer.  There are a lot of factors that weigh into this decision. 

• How long has the property been on the market?

If the home has been up for sale for a while you may be able to offer lower than what the seller is asking.

• How much did other homes that are similar in location and size sell for?

Make sure the price that the seller is asking for is comparable to other homes in the area.

• How much can you afford?

Don’t make an offer on a house that you cannot afford.  This will really take you years to recover from.

I made an offer but, the seller has rejected it, what now?  Never get discouraged when your offer is turned down.  Most times believe it or not, they are turned down.  Remember that this is a negotiation and that you are not walking into a department store to get a pair of pants.  There may be an exchange of several different offers before both sides can finally agree.  You may need to offer more up front but, make the seller pay for repairs or some enhancements to the home.  There are many different ways to negotiate to reach an agreeable settlement.

After some talking back and forth with the seller, we have finally agreed, now what can I expect to happen?  Now it will be time for the closing on the home and one of your final steps as a first time home buyer.  You will schedule a time with a closing agent, yourself, your broker (if you have one), and the seller’s broker, and sometimes the seller also.  This is the time when you will be signing literally stacks and stacks of papers.  The closing agent will go through each paper that you have to sign to make sure you understand what you are signing.  You will also need to make sure that your lender gives you a booklet prior to the closing. This will tell you what the closing costs are for and how much you will need at closing.  This booklet is very important and you need to make sure that you have received this before you got to closing.  Without this the closing could potentially fail or be a disaster.

In closing, being a first time homebuyer is great experience as long as you are prepared.  Be very thorough with your research but, at the same time make sure that you enjoy the experience because you only get to be a first-time home buyer once.