With the right mindset and preparation, a move can be an opportunity to build long-term wealth through smart real estate decisions. By treating the process as a strategic investment, military families can turn their moves into a financial advantage. Here’s a practical guide to help you navigate the Permanent Change of Station (PCS) process while setting the stage for financial growth.
1. Organize Your Finances
Start by figuring out your budget, available funds, and what financial limits you’re comfortable with. Decide whether sticking to a lower monthly mortgage payment matters more than securing the best house at your maximum price point. While a lender’s pre-approval shows how much you can borrow, only you know what fits your monthly budget.
Even if you intend to use a $0 down VA loan, don’t overlook the costs associated with closing. These can easily total $10,000 or more, covering expenses like loan origination fees, VA funding fees, inspections, taxes, and insurance. However, these costs can often be negotiated into the purchase agreement, with the seller agreeing to cover some or all of them.
When selecting a lender, consider shopping around. Local lenders often provide faster service, including weekend availability, which can be a game-changer when negotiating in competitive markets. They may also offer more personalized service and flexibility in closing timelines. On the other hand, big banks and credit unions might provide lower interest rates or better loan terms but could involve more stringent underwriting processes and longer timelines. Consider the trade-offs and choose the lender that balances speed, cost, and flexibility to meet your needs.
2. Find a Trusted Real Estate Agent
Military moves often come with tight timelines, specific financial requirements, and unique considerations. A military-savvy real estate agent is one of the most valuable resources you can have during a PCS move. They act as your guide, negotiator, and advocate throughout the entire process, ensuring you avoid common pitfalls and make decisions that support your long-term financial goals.
Perhaps most importantly, a skilled agent can be your biggest ally during negotiations. They’ll explain all of your available options and fight to secure favorable terms, which can save you thousands of dollars. They’ll also anticipate issues before they arise, whether related to inspections, appraisals, or the seller’s timeline, and work proactively to resolve them.
3. Research the Market and Define Search Criteria
While your agent should play a key role in understanding the local real estate market, it’s still your responsibility to do your own homework. Look for neighborhoods with growth potential, considering proximity to bases, good schools, and amenities. Use tools like Zillow and Redfin to track home prices and trends, Realtor.com for market stats, and NeighborhoodScout for data on schools and crime rates. The U.S. Census Bureau and Bureau of Labor Statistics provide insights on population growth and job markets, while Google Maps helps assess proximity to amenities and commute times. Combine your findings with your agent’s advice to get a clear picture of the market.
Once you understand the market, work with your agent to create your buy box—a clear set of criteria for the type of property you want. Define essential details like number of bedrooms, bathrooms, size, layout, lot type, and non-negotiable features. Decide whether you prefer a move-in-ready home or one requiring renovations. If you’re considering distressed properties, your agent can help you determine the level of work you’re prepared to take on and identify homes with the most potential.
4. View Properties and Submit Offers
Once you’ve narrowed down your options, it’s time to start touring properties. Pay attention to structural integrity, potential repair needs, and neighborhood appeal. Don’t hesitate to ask your agent for guidance on what might impact future resale value or rental potential.
When you find the right property, act quickly to submit an offer. Your agent will help you craft a competitive offer that considers the local market, property condition, and your financial goals. Be prepared to include contingencies for inspections and financing to protect yourself in case unexpected issues arise.
5. Conduct Due Diligence and Finalize the Deal
Once your offer is accepted and the contract is ratified, the due diligence phase begins. A ratified contract means both you and the seller have agreed to all terms, including the price, contingencies, and timeline, making the agreement legally binding. From this point forward, you’re on track toward closing, but certain steps must be completed to ensure the deal moves forward.
The first step is to review the contingencies outlined in your contract. These might include inspections, financing, and the appraisal. Schedule a home inspection as soon as possible to identify any structural or functional issues with the property. If issues are found, your agent can help you negotiate repairs, price adjustments, or credits with the seller. Acting quickly is essential because delays can jeopardize your timeline and even the entire deal.
Simultaneously, your lender will order an appraisal to confirm the home’s value aligns with your purchase price. This is especially important if you’re using a VA loan, as the property must meet specific requirements to qualify. If the appraisal comes in lower than the agreed price, you’ll need to work with your agent to negotiate a solution, such as lowering the price or covering the difference out of pocket.
You’ll also need to work with your lender and title company to verify financing, complete a title search to ensure the property is free of liens, and secure homeowners insurance. Stay organized by keeping track of deadlines and communicating regularly with all parties involved—your agent, lender, and title company.
Once all contingencies are satisfied and financing is finalized, the deal moves toward closing. On closing day, you’ll sign the final paperwork, make any required payments, and officially become the owner of your new home.
Conclusion
When families reframe their mindset and approach a move as a chance to create opportunities, real estate becomes a tool for long-term financial growth. By planning strategically, making informed decisions, and leveraging the resources available during a PCS, families can turn what might feel like a challenge into a pathway to building wealth.
For expert guidance in navigating the home buying process or if you need help connecting with a military-savvy real estate agent in your new market, connect with me on my website to maximize your real estate success.