Cedar Rapids Real Estate Blog

First Time Home Buyer in Cedar Rapids, Iowa? Top Ten Things to Make Sure You Do in This Market!

Cedar Rapids Real Estate has had its share of ups and downs just like any other real estate market in the country.  The good news is that its changes have been slow and deliberate and progress continues to be steady.

It's still a great time to buy a home in Cedar Rapids, especially in the fall/winter.  Why?  Because sellers who have their house on the market in the fall are serious about selling.  The market, while "red hot" in the summer, has somewhat cooled and so sellers are motivated to move their property.  Buyers in this market are also highly motivated, whereas in the summer months, eight out of every ten people interested in a property were most likely "lookers."

Since we all know that lending practices from banks and other institutions will likely tighten and become more stringent, this doesn't mean that you can't own a piece of the American dream.  This is what you must do in preparation for your purchase.

1. Repeat after me; "Do not panic, do not panic."  While the national news spells out its doom and gloom with the 700 Billion dollar bailout of the banking industry, the housing industry, and Wall Street, it is not necessarily a recipe for disaster for you, the local home buyer in Cedar Rapids.  Sit down with a local Realtor and a local lender.  Let them explain the forecast for your home purchase so that you can alleviate the stress of what you hear from friends, family, and the national media; most of which has been extremely hyped.  You must make the phone call though to begin the process.
2. Talk to a lender and go on a financial diet.   Maybe your spending habits are out of line with what you actually earn.  Sit down at the table, and actually go over what you spend each and every week.  It will shock you, what you spend your money on.  Then, trim the "fat" from your budget or lack of budget and save that money for a rainy day home purchase.  A lender is trained to go over these scenarios with you and get you on the right track.
3. Your Spending Habits are Not Disciplined!  How much do you make a month?  What is your rent?  What are your utilities?  How much for groceries, gas, and entertainment?  If you don't know, then you are not disciplined and need to visit the principal's office.  Know how much you make, how much you spend, and then you'll know how much you can save.
4. Preparation!  Just knowing you might be purchasing a home within six months to a year causes you to think differently, and so you start the process of preparing.  You look at things more closely: your budget, your lifestyle, your spending habits, your credit card debt, your long standing debt, etc.  
5. Education!  Being a former elementary school teacher, education has never left my side now that I work with "big kids."  To buy your first home, you must realize something.  You are not educated in the process.  That's why you turn to a professional Realtor who does.  Don't believe me?  Go to my BUY link on my website and become the student.  Educate yourself and you'll save thousands of dollars, hours of time, and loads of stress in the process of learning how the process works from initial contact with a Realtor to closing and possession of your first home. http://www.christophersmithrealtor.com/BUY/page_2124721.html
6. Planning, planning, planning!  You start to see that a lot of these themes are overlapping.  That's because everything I'm talking about here bears repeating over and over.  I can't emphasize enough that planning is so important to your first home purchase.  When do you want to buy?  What will the market be like when you buy?  How are you going to be able to afford your first home?  How much money will you need to put down?  Are there special programs for me if I served in the military?  All of these questions and a million more deserve to be answered to your satisfaction before you slowly build your confidence and own a piece of the American dream.
7. Know the market!  If you know the market, then you must be working with a Realtor.  If you don't know the market, get with a Realtor who does.  I do!  You can call on me anytime!
8. The Latte Principle!  When I was teaching in Austin, Texas before moving back home in 2004, I had a very expensive habit.  Everyday, I'd stop by the Starbucks and purchase a non-fat, Grande Latte, with no whip on the top and 2% milk.  "That'll be $4.22 please," was the phrase I heard day in and day out.  Let's do the math.  One week's worth of Lattes adds up to $21.10.  One months worth of that "golden, frothy, goodness" adds up to $84.40.  One year's worth of that "Nectar of the Gods" will cost you $1012,80!  There's no need to ponder what we could or would do with a thousand extra dollars.  Get the picture!
9. Know How Much You Can Afford!  I can provide a good "guestimate" as to how much your monthly debt would be, but until you actually talk to a qualified lender, you'll not know the exact dollar amount.  So call a lender!  Her name is Tami Zumbach and she works at United Security Savings Bank.  Her email is tzumbach@ussbia.com and her work number is 319-363-0261.  She's been doing this for 22 years; 'nuff said!
10. Work with a Realtor who is serious about his job.  I take this job seriously because I know how important a home purchase is to a first time home buyer.  I was nominated this year by Real Estate Magazine as one of the top 50 Up and Coming agents in the United States.  I'm proud of this award but not resting on my laurels.  I work hard for you and it shows.  Also, in the state of Iowa, the Buyer's agent (that would be me) works for free.  You pay nothing to the Realtor who helps you buy your first home.  The seller pays the commission in the state of Iowa.   

Christopher Smith

Traditions Real Estate

www.christophersmithrealtor.com

christopher.smith.realtor@gmail.com

319-329-5988

Licensed Realtor in the state of Iowa

"Success in real estate at the SERVICE of others."

Published Monday, September 29, 2008 8:52 AM by Christopher Smith