House Hunting: Everything You Need to Know

If you think house hunting is like searching for the perfect show to binge on Netflix, you’re not alone. More than half of home buyers say finding the right home is the most challenging part of the home-buying process.¹ But you don’t need to be on House Hunters to find your perfect home. Just stay focused, and you’ll find the home of your dreams!

It helps to know that most buyers search for 10 weeks and go to seven home showings before they find the home they buy.² In the middle of all that, it can be easy to lose focus and forget what kind of house fits your budget and lifestyle. But our house-hunting tips will show you exactly how to buy a home that’s right for you.

What Should I Do Before House Hunting? 5 Steps to Take

Before you hit the pavement with a handful of listings, be sure you take these steps first:

1. Get on the same page as your spouse. Buying a home isn’t worth straining your marriage. So first, make sure you and your spouse (if you’re married) agree on your priorities. One way to do his is by making separate lists of must-haves for your new home and comparing them with objective eyes. Remove as much emotion as possible from budget discussions. And if you find yourselves at a stalemate, it’s okay to pause your search. Taking a two-week break can help give you a fresh perspective.
2. Know how much house you can afford. While it’s important to sit down and write a list of must-haves for your new home (especially if you’re married), it’s silly to go looking for one without considering how much you can afford. You’ll risk falling in love with a house that’ll pulverize you in monthly payments! Your mortgage payment (including private mortgage insurance, HOA fees, property taxes and homeowners insurance) should be no more than 25% of your take-home pay.
3. Save for your down payment. If you make anything less than a down payment of at least 5–10% of the total house price, the extra amount you’ll pay in interest and fees will suffocate your other financial goals. We recommend a down payment of 20% to avoid paying private mortgage insurance (PMI). You can use our Mortgage Calculator to enter your down payment amount and test out different house prices within the budget.
4. Get preapproved for a mortgage. Getting a mortgage preapproval takes a little work on the front end, but it pays off when you find the house you want. When you include a preapproval letter with your offer, it tells the seller you’re a serious buyer. A 15-year fixed-rate mortgage is your best bet to avoid gigantic interest payments over the life of the loan. If you’re ready to get preapproved, connect with our friends at Churchill Mortgage.
5. Find a real estate agent. An agent gives you access to a multiple listing service (more on that later) and simplifies the steps toward buying a great house at a great price. You can’t afford to go without a real estate agent!

Got questions about these pre-house hunting steps? Take a look at our free Home Buyers Guide.

How to Find a House

How do buyers find homes? Most of them use the internet. Drive-by viewings just aren’t going to cut it anymore, folks. In fact, the National Association of REALTORS^® reports that 51% of buyers—that’s right, half of all buyers—found the home they purchased on the internet.³

Use a Multiple Listing Service for Top Accuracy

House hunting can drive you crazy if the listings aren’t accurate. Did you find the perfect home? Whoops! It sold last week. See a price that fits your budget? Sorry! That price went up. Doesn’t sound fun, does it? That’s why you want to go house hunting with access to a multiple listing service (MLS)—a fancy real estate term you’ll hear a lot during your home search.

An MLS is a private database of available homes for sale—compiled and managed by real estate professionals for up-to-date status information and accuracy. Agents have to pay a fee to be part of an MLS because it helps their properties get more exposure to potential buyers like you. It also gives them access to a larger pool of properties to show to their own buyers.

Find an Agent to Get Serious

You see, only licensed real estate agents have access to an MLS. So, when you go house hunting with a real estate agent, you get an insider’s look at the latest listings (sometimes even before they hit the market) and always have the most accurate information about properties you find.

And if you share your list of must-haves (including your max price) with your agent, they’ll help you set realistic expectations and target your search to areas you can afford. They can also guide you through the home-buying process to make sure you get the best deal with no surprises.

Browse the Internet for Ideas

Many house-hunting apps and websites like Zillow and Trulia allow anyone to post a listing for free, which means some of the properties might have outdated or unreliable information. But these online services have become so popular among house hunters that many MLS brokers strike a deal to get their listings added. So, look for apps and websites that rely heavily on MLS data, like the ones listed below.

What Are the Best Apps and Websites for House Hunting?

Your agent will always have the latest and greatest information, but if you want to browse homes online to get the lay of the land, check out the house-hunting apps and websites available to buyers today. Here are some of the best:

• Realtor.com: Imagine falling in love with a home only to learn it was already sold and the listing was never updated. Frustrating, right? Well, Realtor.com boasts listings that are updated at least every 15 minutes, on average. That’ll help you avoid chucking your phone across the room.

• Zillow: It features everything you’d think a house-hunting app should include—plus the unique Zestimate tool that estimates the market value of each house listing. It’s no appraisal, but it might give you a heads-up if the asking price is a complete rip-off.

• Trulia: If you’re a sucker for maps and stats, you’ll like Trulia (which is owned by Zillow). Its property listings include interactive maps that show nearby schools and shopping centers, and it also has heat maps with data on commute times and demographics to give you an instant idea of what life is like in that community. 

• Redfin Real Estate: Unlike the others we mentioned, this house-hunting app was developed by a real estate brokerage. Each listing features a question box you can click to learn more about the house. You can also see the next available house showing by date and then click to schedule your tour.

After you’ve had fun seeing what’s out there, connect with your real estate agent to narrow down your search to the home that’s just right for you and your budget.

Consider Buying a House at Auction

Also, don’t write off buying a house through an auction. You can actually score some major savings here (think tens of thousands of dollars)—if you know what you’re doing.

But keep in mind—auction homes can be tricky territory. These properties are often vacant for long periods, which can lead to issues like no air conditioning (sometimes causing mildew), overgrown yards or worn exteriors—auctioned homes are typically sold as is. Without careful research, you might end up overbidding on a home that requires quite a bit of elbow grease. Tread carefully here and lean on a good real estate agent to help guide you.

House-Hunting Tips

Now that you have some house-hunting tools and an agent in your corner, you’re ready for the hunt. You can avoid some common house-hunting mistakes and score the home of your dreams by following these tips.

Look in Your Price Range

Every housing market is different. House prices can range from affordable to never-in-your-wildest-dreams, from your basic fixer-uppers to move-in ready. And we get it—it’s heartbreaking to fall in love with a home only to find it’s way beyond your budget. But don’t let a single overpriced listing stop you dead in your tracks or convince you there’s nothing out there for you.

Stick with it and trust your agent’s advice—they’re a seasoned pro, after all. Buying a house is one of the biggest investments you’ll ever make. Do the math, figure out exactly how much house you can afford, and hold firm to that number. Eventually, you’ll find “the one” and you’ll be glad you stuck to your budget like a champ.

Focus on Location and Layout

Hate the decorations? Disgusted by the paint colors? Get over it. You can fix those later. But there’s nothing you can do about a lousy neighborhood, a crummy floor plan, a 20-minute drive to the nearest grocery store, or a homeowners association (HOA) with steep fees and restrictions you’re not willing to follow.

Basically, don’t compromise on things you can’t change. Look for a community and layout that fit your lifestyle. But for a good deal, be open-minded about those harvest gold appliances (they’re so retro!).

Consider the Size

How much space does your family need? Remember, your budget should have the final say on how much home you buy. But to give you an idea of what people are buying, recent data shows the median size of homes purchased was 1,900 square feet, with three bedrooms and two bathrooms.⁴

Evaluate the School Districts

If you have kids, the quality of the surrounding schools is obviously a big deal that’s already on your mind. But even if you don’t have kids, a home located near good schools could increase the value of your home when it’s time to sell. Basically, buying a home in a good school district is a great way to future-proof your home’s value. And hey, if you do decide to start a family, you’re already set up with some awesome schools.

Think About Home Value Growth

Don’t just go for a nice porch or spacious yard, focus on long-term home value over immediate appeal—aka a home that’ll grow in value over time. Research the history of home values and businesses in the area. Are home values rising? Are new businesses opening? Those are good signs!

Also, try to find a home at the bottom price range in the best neighborhood you can afford. You don’t want to get stuck trying to sell a $400,000 house to future buyers who are shopping in a $300,000 neighborhood. Plus, if your home’s value rises over time, the equity you build can potentially make it easier to upsize to a bigger home later on.

Ask Questions While Viewing the House

Again, buying a house is one of the biggest (if not the biggest) purchase you’ll ever make. So ask a ton of questions when you’re touring a house to make sure it’s truly your ideal home. Your real estate agent can help you with this as well. Also make sure to check out the seller’s disclosure, which will list any past problems with the house and the ages of the HVAC, roof and other systems.

Happy (House) Hunting!

And there you have it, folks. Whew! That’s a lot to throw at you. But if you follow these house-hunting tips, you’ll do great. If you want to be confident in your search, connect with one of our RamseyTrusted^® real estate agents. They’re pros who know your local market and can help you find your perfect home.