Finding Homes for Sale in Your Chosen Area

By Brandon Cornett
© 2011 All rights reserved

Reader question: "So I guess we need a little help finding homes for sale in our area. We've started looking online, but we're not sure what websites are the best. It seems that different sites have different homes available. Is this really the case? What else would you suggest for first-time buyers who want to find a suitable home?"

You're on the right track by using the Internet. It's a great tool for finding houses for sale in your area. Sometimes you will see some inventory overlap when using different websites. The same homes will appear on multiple sites. In some cases, a particular home may only be listed on one website. So it's wise to cast your net far and wide, by using different real estate websites.

We will talk more about this in a moment. But first, I have some questions for you.

What is your budget?

How much can you spend on a mortgage payment each month, without breaking the bank? You need to know the answer to this question before you start shopping for a home. In fact, you should have a maximum number in mind before you start talking to lenders. Why? Because mortgage affordability and mortgage approval are two different things entirely.

It's possible to get approved for a home loan that's too big for you. So before you worry about finding homes for sale, you should establish a budget for yourself. Don't worry. The math is fairly simple. All you need to do is subtract your monthly expenses from your monthly income -- your take-home pay, after taxes. Here's how to do it.

Have you been pre-approved by a lender yet?

You need to focus on finding homes for sale within your price range. If a lender is only willing to give you $225,000 shopping for homes in the $300,000 price range would be a waste of time. This is why I recommend getting pre-approved by a mortgage lender.

During the pre-approval process, the lender will consider your financial situation to determine what amount you could borrow. They will review your income, credit score, debt situation, and other factors relating to your finances. Get started here

Are you working with a real estate agent?

Did you know that the seller typically pays the commission for the buyer's agent? This is the norm, anyway. So, as a home buyer, there's really no reason to handle the process by yourself. If you're an experienced investor, that's one thing. But if you're a first-time home buyer, you really do need professional help.

Your agent can help you find a home in several ways. The Multiple Listing Service (MLS) is the best tool they have at their disposal. The MLS is a computer database that makes finding homes for sale much easier. But it's not open to the general public, so you'll need to work with an agent if you want to access the MLS.

Your real estate agent might also have knowledge of homes that are just coming onto the market -- homes that haven't yet been listed on the MLS. They can get this kind of information from other agents they work with. Lastly, your agent can provide another set of eyes to help you scour Realtor.com, Trulia.com and other property websites.

Do you want to buy a new or existing home?

Answering this question will help you narrow your search, which makes the entire house-hunting process more efficient. There are certain pros and cons to each option. A new home may cost more than a comparable existing home, but you'll have all-new appliances and system in the house. Not to mention a brand new roof and foundation.

If you buy early enough, you'll be able to customize certain features of the house. If you opt for existing home, you'll probably have more inventory to choose from with better prices.

Checklist for Finding the Right Home

Finding homes for sale will be much easier once you've answered the four questions above. If you've answered all of these questions, and you're ready to move forward with the house-hunting process, you can use the checklist below.

1. Budgeting. Establish a home-buying budget by comparing your net monthly income to your monthly expenses. Do this before applying for a loan. Do not exceed your budget when shopping for a house. More
2. Pre-approval. Get pre-approved by a mortgage lender to find out what they are willing to lend you. That way, you can focus on finding homes that fall within (A) your budget and (B) your pre-approval amount. More
3. Criteria. Make a list of the absolute essentials you need from a home. These are the things you cannot change, such as the location and the number of bedrooms and bathrooms.  In a separate column, write down the things you want but can live without.
4. Agent. Once you've been pre-approved by a lender, you can find a real estate agent to work with. An agent has access to certain tools that can help you find a home faster, such as the MLS and their professional networks.
5. Websites. Familiarize yourself with the three biggest websites for property search. These are Realtor.com, Trulia.com and Zillow.com. Some homes will appear on all three sites, while others will be exclusive to just one site. So you should use all three sites when finding homes for sale in your area.
6. Neighborhoods. Don't just focus on the homes themselves. Start narrowing your search to certain neighborhoods. If you've lived in the area for some time, this will be easy. If you're new to the area, ask your agent which neighborhoods match your lifestyle (young families, large lots, price range, etc.).
7. Short list. Make a list of the homes for sale you want to visit, and give it to your agent. Your agent should providing a list of his / her own, too. The more houses on the list, the sooner you'll be able to find the right one.
8. Evaluation. When visiting a particular property, evaluate it against your list of needs and wants. You can even print out a separate list for each home and check things off as you walk through. Write the address at the top. Make lots of notes.
9. Comps. When you've found a house you like, you'll want to evaluate the seller's asking price. Remember, it's fairly common for sellers to overprice their homes when they first come on the market. Use comparable sales to justify the price.
10. Offer. When you've found the right home for you, make a smart offer by using the comps we talked about above. More

This article offers tips for finding a home to buy. Keep in mind this website offers more than 1,000 articles like this one. It's a library of helpful information for first-time buyers. If you'd like to learn more about any of the topics discussed in this lesson, you can use the search box at the top of this page.