How the canniest sellers price their homes!

August 9, 2017

By: Jamie Wiebe

This is the time for cold, hard data — not emotion.

You don’t need to be Bob Barker to know when the price just isn’t right. Just ask Candace Talmadge. She originally listed her Lancaster, Texas, home for $129,000, but “eventually had to accept the market reality” and chop $4,000 off the price.

The home’s location proved challenging: Buyers were either turned off by the area — a lower-income neighborhood south of Dallas — or unable to afford the home.

“Sellers have to keep in mind the location,” says Talmadge. “Who are going to be the likely buyers?”

Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. Here’s why crunching the numbers is always the better route to an accurate home price — as well as what can happen when home sellers overlook those all important data points.

The Pitfalls of Overpricing:

Homeowners often think that it’s OK to overprice at first, because — who knows? — maybe you’ll just get what you’re asking for. Although you can certainly lower an inflated price later, you’ll sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent you from moving into your dream home. Already purchased that next home? You might saddle yourself with two mortgages.

“You lose a lot of time and money if you don’t price it right,” says Norma Newgent, an agent with Area Pro Realty in Tampa, Fla.

And worse: Continually lowering the price could turn off potential buyers who might start wondering just what is wrong with your home.

“Buyers are smart and educated,” says Lisa Hjorten of Marketplace Sotheby’s International Realty in Redmond, Wash. “You’re probably going to lose them.”

The Pricing Traps:

It’s easy for homeowners to stumble into two common traps:

•Conflating actual value with sentimental value — how much they assume their home’s worth because they lived there and loved the time they spent there.

•Assuming renovations should result in a dollar-for-dollar increase in the selling price — or more.

“Many homeowners think, ‘Of course my home is worth a bazillion dollars,’” says Newgent. If they put in a few thousand dollars worth of new flooring, for example, they might overestimate the upgrade’s impact on the home’s value into the tens of thousands.

Talmadge’s Texas home came with a built-in renovation trap: It was already the nicest home in the area, making it harder to sell. Major additions had inflated the square footage — and the price, according to one appraiser — without accounting for the surrounding neighborhood. That created a disconnect for buyers: Wealthier ones who might be interested in the upgraded home disliked the neighborhood, and less affluent buyers couldn’t afford the asking price.

“Don’t buy the nicest home on the block” is common real estate advice for this reason.

That’s not to say that renovations aren’t worth it. You want to enjoy your home while you’re in it, right? Smart renovations make your home more comfortable and functional but should typically reflect the neighborhood. A REALTOR® can help you understand what certain upgrades can recoup when you sell and which appeal to buyers.

Another culprit for many a mispriced home is online tools, like Zillow’s “Zestimate,” that prescribe an estimated market value based on local data.

The estimate is often wildly inaccurate. A Virginia-area real estate company, McEnearney & Associates, has compared actual sold prices with predicted online estimates for several hundred homes in the area for the past few years and concluded the predictions failed half of the time.

The Right Stats for the Right Price:

The best pricing strategy? Consult a real estate agent, who will use something called comps (also known as “comparable sales”) to determine the appropriate listing price. They’re not just looking at your neighbors; they’re seeking out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.

Once they’ve assembled a list of similar homes (and the real prices buyers paid), they can make an accurate estimate of what you can expect to receive for your home. If a three-bedroom bungalow with granite countertops and a walk-out basement down the block sold for $359,000, expecting more from your own three-bedroom bungalow with granite countertops and a walk-out basement is a pipe dream.

After crunching the data, they’ll work with you to determine a fair price that’ll entice buyers. The number might be less than you hope and expect, but listing your home correctly — not idealistically — is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.

Knowing When the Price is Too High:

Once your home is on the market, you’ll start accumulating another set of data that will serve as the ultimate price test: how buyers react.

Agent Hjorten says there’s an easy way to tell if you’ve priced too high: “If we have no showings, it’s way too high. Lots of showings and no offer means you’ve marketed well — but it’s overpriced once people get inside.”

Talmadge didn’t struggle with showings. She says a number of people were interested in the home, but not enough at the price. In the end, Talmadge sold her home for $125,000, with a $5,000 seller’s assist, a discount on the cost of the home applied directly to closing costs.

“It all boils down to location, location, location. In [another] neighborhood, our house might well have sold for well over $130,000,” Talmadge says.

When it comes to finding a buyer, pricing your home according to data — and the right data, at that — is crucial to making the sale.

6 Ways to Totally Snoop the House You Want to Buy!

August 2, 2017

By: Jamie Weibe

This checklist gives you carte blanche (well, almost) when viewing potential homes.

Ah, house hunting. It may technically be shopping, but it can feel more like breaking and entering. Even though you know the seller wants you there, does anyone really want you traipsing through their bedroom? Or looking through their closet? Or digging around in their basement? Awwwwkward.

But here’s something that should feel weirder: buying a home without knowing absolutely everything you can about it. The only way to avoid the second awkwardness is to face the first head on. When you’re house hunting, don’t think of poking around in someone else’s home as nosiness. It’s a smart, must-do investigation.

Here are six things you should absolutely do when viewing a home — no matter how awkward it feels.

1. Soak in the Bathroom:

Homebuyers tend to peer into the bathroom for as long as they’d want a stranger to examine theirs: not long at all. But this isn’t the time to be quick. Josh Myler, a REALTOR® with The Agency in Los Angeles, encourages buyers to take a long, close perusal of the water closet.

Flush the toilet to find any backups in the system, and turn on the faucets to check the water pressure. Besides being annoying during showers, low pressure can indicate problems with the plumbing.

“Water pressure can really cause headaches down the line if you don’t dig in before you make an offer,” says Myler.

But always, always check with your agent first. In some markets, or with some sellers, it’s considered impolite to actually use the toilet.

Or, if the owners already have moved, the water may be turned off. And that could be, ummm, awkward.

2. Dig Around in the Closets:

OK, don’t actually go through the owner’s stuff, but take a close look to assess how much storage space there is, and decide if it’ll meet your needs.

“People don’t like to open closets because they think it’s rude, but if you’re buying the house, it’s one of the biggest investments,” says Myler. “You want to make sure there’s enough room for everything you need.”

Before you step foot in a single house, take inventory of your current storage space, and know how much you’d like your next home to have.

3. Poke Around the Attic and Basement:

Don’t just stick your head inside and call it good. Give the basement and attic a thorough investigation. If there are belongings piled against the wall, request they be moved before a second viewing.

“I get very nervous when I see a packed basement and stuff against the wall,” says Kyle Alfriend, lead agent of The Alfriend Group in Dublin, Ohio.

That’s because hidden walls and ceilings can conceal water damage, including peeling or discolored paint, rotting wooden accents, or a white, chalky substance on the wall, which indicates water intrusion.

As for the attic, a quick glance should tell you what you need to know. Are there rat droppings? Molding wood? Or is it generally clean, even if dusty? BYO flashlight for an enlightened examination.

4. Meet the Neighbors:

Sorry, introverts. There’s no better way to get a read on the neighborhood than by directly asking the actual neighbors. Pop by their home and strike up a chat.

It’s a two-fer: Not only might you get valuable information about the area — from the noisy bar on the street behind you to eager babysitters on the block — but paying attention to their attitude speaks volumes about your potential relationship with your maybe-neighbors. Do they seem excited to meet you? Or are they standoffish?

“It’s not what they answer, but how they answer that will be very illuminating,” says Myler.

5. Be an Amateur Investigator:

Anything seem fishy? Take your suspicions to city hall. If there are additions, pull the permits or get help from your buyer’s agent. You certainly don’t want to be responsible for tearing out that beautiful porch because the previous owners didn’t comply with the law.

Also, check the certificate of occupancy and any easements — especially if you’re hoping to make any major changes. Both are public record. An easement simply gives someone the right to use property they don’t own. Often that other someone is your local government that needs it for public services, such as water.

Myler remembers a friend who purchased a home with the goal of building a pool, only to find out an easement for the sewer line cut directly through the middle of the yard.

Another common use is a shared driveway, such as when one homeowner has to pass through another homeowner’s property to reach their home.

6. Ask Questions:

If your sleuthing finds something concerning, don’t panic.

“Many times, there’s stuff that, at first glance, is real scary,” says Alfriend. “Often people will write off a house without digging into it, but there’s usually a perfectly logical, understandable reason, and it’s not a problem.”

Say you find a gaping hole in the drywall. It might be a huge red flag — or they might have rambunctious kids they absolutely plan to clean up after.

“Boys can wrestle and put a foot through the thing, and it’s 30 minutes before a showing,” Alfriend says. There’s not much the sellers can do at that point.

With any problem, your first step is simple: Ask.

The #1 Secret Weapon to Organize Just About Anything!

July 29, 2017

By: Lisa Kaplan Gordon

Organization can happen quickly, easily, and without spending a ton of money. The secret? Pegboards

It’s Monday, and your home office is still a mess.

Not to mention your garage.

You meant to get one of them organized over the weekend. But, well, you got stuck on exactly how to do it.

And, instead, ended up packing your Pinterest page with ideas to organize them — but they’re either too expensive, too hard to do, or just plain unrealistic (who stumbles upon a vintage library card catalog for only $7?!?).

Maybe pegboards can help. Abundant, affordable, and easy to DIY, it’s possible you could be swooning over your home’s orderly good looks by next Monday.

Store All Your Hand-Crafting Supplies Within Easy Reach:

Crafter Rachel Beach of the “Craving Some Creativity” blog did that and loved the results.

“My craft supplies are pretty, and I didn’t want to just tuck them away in a drawer,” she says. “The only thing I hide now are my favorite sewing scissors, so my kids don’t cut tin foil with them” and ruin them.

The clean, fresh, and organized look also means no more searching for the right supplies next time you want to personalize a gift bag or create a special memento.

Tuck Cleaning Supplies Into a Tiny Wall Space:

You know the SoftScrub’s somewhere in your “sinkhole” (better known as that impossible space under your sink). But it’s always a knee-busting chore to find it.

So, why not store it somewhere that’s easier to find? Like on the wall?

Awkward spaces that don’t allow for traditional shelves and cabinets, like this space opposite a doorway, are often perfect for the slim profile of pegboard.

Condense (and Organize) Your Office Space:

Lara Edge, who has six (!) pegboards in her tiny Athens, Ohio, home (including the cleaning one above), said it all started when she was trying to find a way to get more floor space in her tiny office so it could do double duty as her yoga space, too.

She did some research and found metal pegboards (from a company called Wall Control), that can support heavy items like printers and files.

“Now I’ve got enough free floor space so I can do yoga without smashing my elbow into the printer,” Edge says.

Keep Sports Stuff From Overflowing:

It’s no wonder you’re always that family, rolling up to practice late (sorry, Coach!). Balls are constantly disappearing under couches and beds. Hockey sticks slide onto the floor. Sweaty shoes stink up your living room, which isn’t supposed to be a locker room, btw.

Corral them onto a sports equipment pegboard — a cute, painted one.

If you want to make the board even more user friendly, tape off squares on the board and paint them different colors, visual cues that remind them what goes where.

Create a Coffee and Tea Station:

You must have 20 coffee mugs. And each one has a memory. So you can’t bear to part with them. Yet they’re just taking up cupboard space, and you end up using the same one over and over.

Make them visible — and convenient — with a pegboard. Even create a complete beverage center by adding coffee, tea, all the makings.

Untangle Your Jewelry:

So that’s where your jade bracelet’s been hiding. Underneath that chunky necklace your aunt gave you that you never wear.

The key to keeping your jewelry untangled and easy to scan is having a spot for every piece. And all those holes in pegboards make that easy. Start by evaluating every piece you have (maybe it’s time to donate that chunky necklace to charity?) to see how many hooks and the size pegboard you need.

Hang Plants Instead of Putting Them on the Floor or Tables:

Pegboards easily hold pots on patios walls and free up floors when you move plants inside for the winter.

Just make sure your indoor pegboard is mounted on a wall splashed with sunlight, and keep watering logistics in mind. Opt for air plants and low-maintenance succulents (like what’s pictured), or configure your board to include drip-catchers, too.

Build a Headboard that Doubles as a Nightstand:

Instead of spending hundreds on a headboard and night tables, install a pegboard over your bed disguised as a crafted headboard.

Be sure to paint the board with a fairly dry brush so you don’t clog holes with semi-gloss; then frame the board with door trim. Last, hang baskets and clip-on reading lights on the board.

Make Pots and Pans a Lot Faster to Find:

If it’s got a handle with a hole — as most cookware does — you can hang it on a pegboard. Even professional chefs love this setup because it’s efficient.

Cookery is heavy, so be sure to screw the pegboard into studs, or use heavy-duty anchors.

Tame All Those Unwieldy Cords and Cables:

If your TV, cable box, modem, router, Xbox, and Apple TV all live in the same corner of your living room, you know the great depths of cord insanity.

You can organize it all by mounting your many cables — and even some of the devices — on pegboards using plastic zip ties.

Hang Your Artwork and Keepsakes Neatly and Easily:

Cover a wall in pegboard, and you’ve got an instant gallery wall that makes it so easy to switch out artwork and mementos.

The real fun of this pegboard project is how it can rejuvenate your love for each piece because you can rotate them in and out. Maybe at Thanksgiving, you bring out old family photos; in winter, you highlight your skiing pics, and summer becomes a beach theme.

Go Portable for Uber Organization:

Install casters on a pegboard cube, and you’ve created a mobile caddy that easily transports whatever it is you need: tools, cleaning products, wrapping paper, or ribbons.

Decide how big you want your caddy before heading to the store, and ask someone to cut the board to your specs. It’s worth an ask, and can make this a really easy project.

3 Must-vs-Lust Buying Tips to Avoid Overspending!

July 27, 2017

By: Mandi Gubler

The super-simple (and fun) way to separate needs from nice-to-haves.

This article was contributed by Mandi Gubler, a DIYer and home decor blogger, who writes “Vintage Revivals” and believes “your house should look like you and no one else.”

When you embark on the home-buying process, your heart is filled with all the dreams in the world. It’s really easy to get caught up in the “I have to have ___________,  so I’ll cut back somewhere else ” game, even when you don’t actually know where that somewhere else is or if you can realistically cut back there.

This post will show you how to pare down the excess and make sure to get the things you really NEED.

Make a List of Wants:

Start by making a list of everything you want in your house. If you love it, jot it down. Have your spouse or partner do the same thing in a separate document.

Once you and your partner have everything down, start sorting your wants by order of importance. What’s your No. 1? Do you need large windows? How about a sunroom? Double sinks in the master? You get the idea.

Come up with your top 10, and then compare your list to your partner’s top 10. What things appear on both lists? Those items should carry more weight because you both want them in your home.

Highlight the Important Stuff:

Next, look at your list and consider:

•The things that can’t be changed without a massive investment. I’m talking things like square footage, window size, and number of bedrooms. This is your heavyweight list. These things should take priority in your home-buying decision.

•Features that are purely cosmetic, especially things that can be DIYed. These items should be moved waaay down the list or taken off entirely. Backsplash tile, paint color, and lighting can all be changed inexpensively and after you’re living in your house. You don’t want to pass up a fantastic house because you can’t see past a red accent wall.

At this point, you should have a combined list of 10 or so items.

My last tip is to figure out the priority of each one of the items. Ask yourself, would you be willing to give up item number 4, say, to have item number 5? Would you be willing to give up hardwood floors for a home theater room? This is the hardest question to answer, but it’ll put your must-haves in the right order.

I always picture this activity like an eye appointment when the doctor says, “1 or 2? OK, now 2 or 3?” Do that with your list! Pool or flooring? Flooring or yard size? Yard size or square footage? Make sense?

Bring Your List When You Look at a Home:

As you’re out looking at houses, keep your list handy. Maybe you’re not willing to give up hardwood floors for a jetted tub, but would you be willing to compromise for a jetted tub and extra square footage? Refer back to your must-haves list often. It’s easy to get distracted.

Here’s a quick checklist that I use when searching for a home. If you answer “yes” to all of these, then a “want” may be worth the splurge — that is, if you can be sure that you’ll be able to afford the feature (in terms of your monthly mortgage payments and living expenses).

•Is it on both of your lists?

•Is it something that’ll be extremely expensive and difficult to change or add?

•Would you be willing to sacrifice something else to have it?

•Would you feel like your house would be incomplete without it?

Happy house hunting!

10 Summer Projects That’ll Leave No Doubt Your Home Says ‘YOU’!

July 22, 2017

Here’s how to customize your house with your own personality and charm.

You started calling it yours the day you signed those closing documents.

OK, so maybe it was that giddy moment when you first saw its spacious, sunlight-drenched living room. (Make it mine, please!)

But when does a house really become yours?

You didn’t design it. You sure as heck didn’t build it. You’re probably not even the first person to live there.

Whether it’s a 1920s Cape Cod or a new build that’s oh-so-slightly different from the one next door, a house truly becomes your home when you pour your personality into it. The right projects — executed with the right soul-bearing spirit — can leave friends, guests, and (most importantly) yourself saying, “This place is so you!”

Here are 10 ways to get that validation:

#1 Upgrade a Wall With Personalized Materials:

Brittany Bailey of the “Pretty Handy Girl” blog was in a rut. She had a room of her own to do her crafting, but the blah atmosphere was uninspiring.

So she built her inspiration right into the walls. Bailey grabbed some wood scraps from previous art projects (could materials get any more personal?), added a little paint and stain, and covered an entire wall with them to create a cozy, personalized, uber-inspiring studio.

“It’s warm, rustic, and isn’t afraid to show its imperfections,” she says. (Just like her, she notes.)

Bonus: A built-in shelf provides space to display her favorite bottles, artwork, and mementos.

#2 Use Your Favorite Pattern in an Unconventional Way:

From siding to tile, houses are full of everyday patterns.

But the best way to use a beloved pattern is to break the mold with it. Jillian Rose, a REALTOR® in Austin, Texas, absolutely loves the zigzag look. She’d seen countless herringbone floors in her job, but never a countertop.

So when she planned a kitchen redo, she thought, why not zig where others have zagged? After some staining and sanding, her countertop has a unique antique-y look that happily pulls double duty by hiding dings and scratches.

#3 View Appliances as Opportunities for Expression:

Who doesn’t love polka dots?

Just like adorbs puppy videos, they’re instant mood elevators, especially in a room that isn’t known for generating gobs of excitement: the laundry room.

“Polka dots are timeless,” says Ginger Bowie of the blog “GingerSnap Crafts.” “They’re fun, simple, and cute, and I’d like to think I’m those things, too!”

With her handy Silhouette craft cutter, she cranked out sheets of vinyl dots and applied them to her washer and dryer in no time at all.

#4 Build a Murphy Bar to Show Off Your Cocktail Skills:

If you live for crafting your own bitters and herb-infused simple syrups, an outdoor cocktail space is a must-have home for your cocktail hobby. With a little creativity, your patio bar can be as quirky as your latest libation Check out this fun and very useful twist on a space-saving Murphy bed, which will say youwith every drink you serve.

#5 Paint and Decorate Your Ugly Rain Barrel:

When Lara Edge, a homeowner in Athens, Ohio, realized the best place for a rain barrel was going to be in her front yard for all to see, she started hunting for something that wouldn’t be an eyesore.

But the cost was a non-starter. Instead, she bought a cheap, plastic one, then painted it with colorful [she loves to be surrounded by colorful things] depictions of her dog and cockatoo — and even added a few favorite song lyrics.

Instead of an eyesore, now she’s got a focal point of pure personal joy.

#6 Hang an Outdoor Oasis for Your Book- and Nap-Loving Soul:

Indoor furniture, outdoor future — when you’re a Bohemian at heart, what’s the diff? Take your dreamy, summertime reading (or napping) habit to the trees with a swinging, outdoor bed.

This easy-to-build bed swing is made from a wooden pallet. Besides making your yard a personalized haven, you won’t get all smushed up and sweaty like you can in a hammock, making you feel more yourself before and after your sunny afternoon snooze.

#7 Upcycle Something You Love Into a Fence:

Love the idea of a fence, but want to tamp down the go-away-ish message it sends? Try ditching the boring, white-picket kind and turning your fence into a friendly work of art using upcycled materials that say a little something about you, like this one made of cast-off skis.

Not into snow? Bicycles, wagon wheels, even old license plates are all worthy substitutes. But be careful: A fence that says you just might turn your house into the most popular one on the street.

#8 Turn an Unused Closet Into a Wine ‘Cellar’:

You are so the kind of amateur sommelier who was born to have their own wine cellar — you just weren’t born with the kind of trust fund necessary to set one up.

But you don’t have to keep your passion in the proverbial closet if you have an actual closet to spare. Check out this above ground wine “cellar” that can feed your inner oenophile and wow your guests.

It’s easy and cheap to build, and best of all, no cavernous basement expansion necessary! It just goes to show, when you have expensive tastes, there’s often a clever, budget-friendly way for your home to accommodate them.

#9 Create Personalized Features for Your Furriest Family Members:

It’s your home, but what’s yours is also your four-legged buddy’s.

When Michael Barber, of St. Louis, started house-training Kenji, his new Shetland sheepdog, he thought typical metal crates were too big — and an eyesore.

So he turned the wasted space under his stairs into a (totally adorable) kennel, going all out with vinyl flooring, a fan, LED lighting, and even a networked camera so he could keep an eye on his furry friend.

“It was probably one of the best projects I’ve ever built,” says Barber. When it’s for your best friend, how could it be anything but?

#10 Express Yourself With an Original Floor:

Anyone can paint a wall. But why stop personalizing at the baseboards? A creatively painted floor can make every inch of a space feel truly you. When Jenna LaFevor of the “Rain on a Tin Roof” blog decided to paint her porch floor, she wanted to convey her personality to guests and passersby. “It lets people know that we are fun and don’t take life too seriously,” she says.

Buy Your First Home in One Year: A Step-by-Step Guide!

July 20, 2017

The ultimate timeline ensures the smoothest of transitions.

A real yard. Closets bigger than your average microwave. The freedom to decorate however you darn well please! Making the switch from renting to owning is exhilarating, but many rookie homebuyers find the process trickier to navigate than they expected.

This is why we created our First-Time HomeBuyer Checklist. The 12-month timeline will help you sidestep common mistakes, like paying too much interest or getting stuck with the wrong house. (Yep, it happens!)

12 Months Out:

Check your credit score.Get a copy of your credit report at annualcreditreport.com. The three credit bureaus (Equifax, Experian, and TransUnion) are each required to give you a free credit report once a year. A Federal Trade Commission study found one in four Americans identified errors on their credit report, and 5% had errors that could lead to higher rates on loans. Avoid last-minute bombshells by checking your score long before you’re ready to make an offer. And work diligently to correct any mistakes.

Determine how much you can afford. Figure out How Much House Can You Afford?Lenders are happy to lend you as much as your debt load allows. But will that amount make you house poor? Ask yourself, how much house do I really want to afford? Lenders look for a total debt load of no more than 43% of your gross monthly income (called the debt-to-income ratio). This figure includes your future mortgage and any other debts, such as a car loan, student loan, or revolving credit cards.

There are plenty of calculators on the web to help you determine what you can afford. If you’re pushing the limits, start reducing your debt-to-income ratio now. To get a reality check on what you may actually be spending every month, use this worksheet.

Make a down payment plan. Most conventional mortgages require a 20% down payment. If you can swing it, do it. Your loan costs will be much less, and you’ll get a better interest rate. If, however, you’re not quite able to save the full amount, there are many programs that can help. FHA offers loans with only a 3.5% down payment. But they require mortgage insurance premiums, which will drive up your monthly payments. The U.S. Department of Housing and Urban Development (HUD) provides a list of nonprofit homebuying programs by state. Also check with credit unions; and your employer might even have an assistance program.

As you’re planning your savings strategy, keep in mind that banks like you to “season” your money. That is, they like to see that you’ve had stable funds in your account for 60 to 90 days before applying for a loan. Don’t worry: You can still use a financial gift from a family member or bonus received near the time you buy.

9 Months Out:

Prioritize what you most want in your new home. What’s most important in your new home? Proximity to work? A big backyard? An open floor plan? Being on a quiet street? You’ll make a much better decision on what home to buy if you focus on your priorities. If it’s a joint decision, now is the time to work out any differences to avoid frustration and wasted time. Perhaps most important: Know what trade-offs you’re willing to make.

Research neighborhoods and start visiting open houses. But now’s when the fun begins, too. Use property listing sites, such as realtor.com, to find out about neighborhoods, public transport, and cost of living.

Start visiting open houses to get an idea of what kind of homes are in your price range and what neighborhoods appeal the most. Seeing potential homes will also keep you motivated to continue reducing your debts and saving for your down payment.

Budget for miscellaneous homebuying expenses. Buying a home has some miscellaneous upfront costs. A home inspection, title search, propery survey, and home insurance are examples. Costs vary by locale, but expect to pay at least a few hundred dollars. If you don’t have the cash, start saving now.

Start a home maintenance account. Speaking of saving, start the good habit now of putting a little aside each month to fund maintenance, repairs, and home emergencies. It’s bad enough to have to call a plumber. It’s worse if you’re paying credit card interest on that plumbing bill.

6 Months Out:

Collect your loan paperwork. Banks are very particular when it comes to mortgage loans. They demand a lot of paperwork. What they’ll want from you includes:

• W-2 forms — or business tax return forms if you’re self-employed — for the last two to three years
• Personal tax returns for the past two to three years
• Your most recent pay stubs
• Credit card and all loan statements
• Your bank statements
• Addresses for the past five to seven years
• Brokerage account statements for the most recent two to four months
• Most recent retirement account statements, such as 401(k)

If you start collecting these documents now, it’ll lessen the stress when it’s time to get your loan. Bonus: Looking closely at your loan documents each month will also help you stay focused on saving for your down payment and keeping your debt-to-income ratio low.

Research lenders and REALTORS®. Start interviewing REALTORS®, specifically buyers’ agents. A buyer’s agent will work in your best interest to find you the right property, negotiate with the seller’s agent, and shepherd you through the closing process. Your agent also can be instrumental in finding a lender who’s familiar with first-time home buyer programs.

Even better, look for a mortgage broker, who will shop for a competitive loan rate for you among multiple lenders, unlike a bank, which can only offer its own products.

3 Months Out:

Get pre-approved for your loan. At this point, if you’ve been following this timeline, your credit score, paperwork, and down payment should be on track. You’ve done your research on lenders and buyers’ agents. Now it’s time to start working with them. First you’ll need to get pre-approved for a mortgage.

Make an appointment with your lender or mortgage broker and bring all your paperwork. He’ll run a credit check on you and tell you how much of a loan you’re approved for. It often makes sense to borrow less than the maximum the lender allows so you can live comfortably. Draft a budget that accounts for mortgage payments, insurance, maintenance, and everything else you have going on in your life.

Start shopping for your new home. One you’re pre-approved, the buyer’s agent you’ve chosen will be able to target homes that meet your priorities in your price range. This way you won’t be wasting time looking at homes you can’t afford.

2 Months Out:

Make an offer on a home.It usually takes at least four to six weeks to close on a home. So if you have a firm move-out date, allow enough time to deal with any hiccups that can delay closing.

Get a home inspection. One of the first things you’ll want to do after an offer is accepted is have a home inspector look at the property. If the home inspector finds something that needs repair, that’s a common example of something that can delay closing.

In the Last Month:

Triple-check that all your financial documents are in order and review all lending documents before closing. You’re in the home stretch! If you’ve been keeping your documents up to date, and your down payment is in reserve, these final steps are the easiest. Reviewing the mortgage documents is probably the most difficult. Your agent can help guide you through them.

Get insurance for your new home. Don’t forget to secure insurance before closing. You’ll need to bring proof of insurance to closing.

Do a final walk-through. Do a final walk-through of your new home, usually a day or two before closing, to make sure the home is in the shape you and the seller have agreed upon.

Get a cashier’s check or bank wire for cash needed at closing. Make sure you get an exact amount of cash needed for closing. You’ll get that number a few days before closing so you can secure a cashier’s check or arrange to have the money wired. Regular checks aren’t accepted.

That’s it. Congratulations!