The first-time buyer's guide to Ann Arbor
Everything you need to buy your first home with confidence.
Who this guide is for
This first-time buyer's guide to Ann Arbor is for you if you're thinking about buying your first home and you'd like to understand the whole process before you start. You don't need to know any of the words yet. By the end, you'll know what happens, in what order, and what you'll be asked to do.
When I started in real estate, it felt like learning a whole new language. I remember that feeling, so this guide uses plain words and explains each step before you need it. Read it at your own pace, and when you're ready to talk about your plans, I'm here.
Step 1: Start with a conversation
Before you look at a single home, talk with the person who will guide you through it. With every buyer I work with, we start with a conversation. If you live nearby, we meet in my office. If you're moving from out of state, we talk by phone or on Zoom.
We talk about why you're buying, when you'd like to move, what matters most to you in a home, and what worries you about the process. Those answers shape everything that follows.
Step 2: Get pre-approved, and know your comfortable payment
Your next step is a lender and a pre-approval. A lender looks at your income, your savings, and your credit, and tells you what you can borrow. A pre-approval also tells a seller you're a serious buyer.
The amount you can borrow is useful, but it isn't the most important number. The most important number is the monthly payment you're comfortable with. That's the number that decides how the next few years feel, so keep it in front of you the whole way.
Ask your lender to show you the cash you'll need beyond the down payment. That includes closing costs, and the cost of an inspection. If you don't have a lender yet, I can introduce you to lenders I trust.
Step 3: Learn the market by watching it
While you work with your lender, I set you up on a home search, so new listings that match what you want come straight to you.
Then watch it for a while. Notice what comes on the market at your price. Notice how quickly homes go under contract in the areas you like. I'll also show you recent sales, so you see what homes actually sold for, not just what sellers are asking.
After a while, you'll start to recognize a well-priced home when you see one. That makes your decisions faster and calmer when the right home appears. Read more in how I help buyers learn the market.
Step 4: Decide where to look
Around Ann Arbor, a first home can look very different from one place to the next. Ann Arbor itself has older homes near downtown and neighborhoods of 1950s ranches. In Water Hill, some century-old houses have just two bedrooms, which can make a home close to downtown more reachable.
Nearby towns give you more choices. Ypsilanti, just east of Ann Arbor, comes in at a lower price point, and its College Heights and Normal Park neighborhoods have good resale. South Lyon comes in at a lower price point too, or gives you more property for the money.
Think about your daily drive, how close you want to be to the places you go, and what kind of home you can see yourself in. I'll show you recent sales in each place you're considering, so you can compare them side by side.
Step 5: The paperwork before your first showing
Before we tour homes together, we sign a written buyer agreement. I'll walk you through it first so nothing in it surprises you.
Step 6: Choose which homes to see
Seeing too many houses in one day makes them blur together. A better way is to narrow the list together first, so every showing is worth your time.
If you find a home on your own, send it to me. I'll get answers to your questions about it, and then we'll decide together whether to see it. If you can't be here in person, I'll walk through the home with you on a FaceTime video call, room by room.
When we tour a home, I'll tell you what I see: the condition, the layout, the street, and anything that concerns me. With an older home, I'll point out what to look at closely.
Step 7: Make an offer
When you find the right home, we decide on your offer together. I start by pulling the recent sales of similar homes nearby, so you can see what the home is worth. Then I call the listing agent to learn how much competition there is and what matters most to the seller.
An offer is more than a price. It also includes terms, like the closing date and the conditions the sale depends on, such as your financing and the inspection. What the listing agent tells me helps us shape those terms. I explain each part in plain words, tell you what I recommend, and you decide.
Step 8: After your offer is accepted
Once your offer is accepted, things move quickly. First, we talk about your inspection. If you have an inspector you'd like to use, that's fine. If not, I can share inspectors I trust. At the same time, the paperwork goes to your lender so your loan can get started, and I'll tell you exactly what I need from you up front.
Be ready for the first few days to feel busy. Your lender and I will both ask you for documents. It slows down after that.
Next comes the inspection. The report will likely list some small items, because every home has them. We focus on what matters most: safety, structural issues, and foundation issues. If something significant comes up, I'll explain your options and we'll decide together how to handle it.
Step 9: Closing day
As closing gets closer, we'll talk about where the closing will happen. Your earnest money, the deposit you made with your offer, is applied to your closing costs on closing day.
I like to do the final walkthrough right before closing and then go straight to the signing. That way you've seen the house just before you sign, and you know nothing major has changed. Then you get your keys.
Mistakes first-time buyers can avoid
- Shopping before you're pre-approved. It's easy to fall for a home you can't comfortably buy, or to miss one because you weren't ready.
- Borrowing the most you can. Plan around the monthly payment you're comfortable with, not the largest loan you qualify for.
- Judging a home by its photos. Photos show a home at its best. Look at the condition, the layout, and the street too.
- Skipping a close look at an older home. Many homes around here are around 100 years old. Character is wonderful. Know what you're buying.
- Falling behind on paperwork in the first few days. Quick answers to your lender keep your purchase on schedule.
- Looking at only one place. Compare a few towns and neighborhoods with real sales before you decide.
Your next step
I'm Nancy Arnold, a REALTOR® with The Charles Reinhart Company. I've worked the Ann Arbor market for 13 years, and I'd be glad to walk you through your first purchase one step at a time.
Call me or send a note to set up our first conversation. You can also read how I help first-time buyers or how I help you buy. Make it a great home selling and buying day.
This guide describes my general process. It is not legal, tax, or lending advice.
Frequently Asked Questions
What should I do first when buying my first home?
Start with a conversation about your plans, then talk with a lender and get pre-approved. I can set up your home search at the same time.
Do I sign an agreement before seeing homes?
Yes. Before we tour homes together, we sign a written buyer agreement. I'll walk you through it first so nothing in it surprises you.
What happens to my earnest money?
It's applied to your closing costs on closing day.
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Ready to make your move with Nancy Arnold?