How Long Does it Take To Buy a Home?
Funny enough, I was just talking with another potential MN First Time Home Buyer about this tonight on the phone. Some people are under the impression it takes anywhere from 6-12 months for the process to play itself out. Others think they can start looking at homes 30 days before they want to move.
The strange part is, they can both be right.
Buying a home is different for everyone. Some people just want to stop paying rent. Others want to invest in their home and buy more properties to have a portfolio of investment houses. Still, others may want to develop a business out of their home, and use it for more than just a place to raise their family.
Regardless of your motivations for becoming a home owner, I suggest you examine your individual timeframe and lifestyle when answering this question.
Maybe you have a lease expiring in the summer, or change job locations in a few months across town. Whatever your status is, try to line up any important dates along with your desired move in date, and work backwards from there.
In my previous article about the Home Buying Process, there are some clear steps that HAVE to be taken in order to call yourself a home owner. But the amount of time each stage takes can vary from person to person, and house to house.
If you’re just now beginning to delve into the local Minnesota Real Estate Market, or thinking about buying a home sometime in the next 2 years, then be prepared to learn a lot, and take as much time as you need to feel comfortable with your purchase – it’s most likely the biggest buy of your life!
Standard practice with my clients tells me that anywhere from 4-8 months is a healthy timeframe from the moment you start searching for information online or with family and friends, to when you actually close on the home and move in. The first, and still most important step, is education. It’s dorky, but true when you hear that “knowledge is power.” Don’t be left unaware, get educated.
Knowledge is Power!”
For some, this first period of reading articles online, meeting with real estate professionals, and attending first time buyer events can be 1 week, or 1 year. It’s up to your schedule and level or comfort with the information you’re given.
After that, you should apply for a loan which should take about a week to know for certain what your buying power will be.
Searching for properties with your realtor might be the longest stretch for most people, especially now that there’s a ton of listings to choose from. Buyers want to make sure they are getting the best deal for their money and seeing 20+ homes can accomplish that over a period of weeks or months.
After you find the right home, you’ll write the offer which takes a couple hours. Then you will hopefully get an accepted contract within the first day or two of your negotiation. If you’re dealing with a foreclosure or short sale, be prepared to wait longer for the bank to respond.
The closing is the last big step, however there are quite a number of things that happen in between, which is why most closings take about 30-60 days from the date the offer is signed by both the buyer and seller.
Even if you’re eager to move into the house, you’ll want this period of time to gather documents, inspect the home, make moving arrangements, and get ready to decorate your new place.
Here’s a summary for all you “Cliff’s Notes” fans out there:
- Getting Educated: 1 week to 1 year
- Loan Pre-Approval: 1 week
- Searching With Your Realtor: 1 to 6 months
- Negotiating an Offer: 3 to 7 days (more for Bank-Owned homes)
- Setting Up Closing: 30 to 60 days
Remember, these numbers are different for everybody. Some people call me and we find a house in the first week. Others need more time to look for their right home.
My Recommendation: Spend a couple weeks getting educated about the process. Meet with a Loan Officer and Realtor to get even better information, and learn your buying power. Start the search, and get serious when you feel the time is right for you. When you do find that perfect house, don’t hesitate. Go with your gut and make sure you’re Agent agrees with the numbers. That’s what I’m hear for. If you lose out to another buyer, don’t sweat it – keep going until you get the house that fits you best.
Talk with your Realtor as much as you need to feel Ok with the timeframe and process; and if you don’t have one yet, give me a call or email. I’d be glad to represent you in your home search.
Please let me know if you have questions or want to get the process started. And remember: the only “dumb questions” are the ones that you don’t ask.
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