Are planning of buying your first home soon? Well, there are lots of things that you need to know to make sure that the whole process is smooth and stress-free. Buying a home can be complicated and challenging especially if you are a first-time buyer.
From getting preapproved to negotiating with sellers, the home buying process requires unique skill and experience. Here are the top seven things that you need to know before buying your first house.
- Know Your Wants vs. Needs
The first thing that you need to know when buying a house is what you want. Do you need a move-in-ready condo or a family home? Take time to weigh your needs to determine what you will be looking for in a property.
Understanding your needs is a significant game-changer once you start looking at listed properties in your preferred neighborhood.
- Looking for a House Can Be Quite Emotional
Once you realize that it is time to purchase a home, you will start to feel like it is an urgent thing that you need to accomplish. You will start looking at houses for sale near me and imagining how you will be owning one of them soon.
However, the truth is that the home market is tough. Some properties are sold a few hours or days after listing and things might become emotional if you don’t find what you are looking for faster.
You may find a good house and before you make an offer, someone else buys it. The secrete to navigating through the home market is being patient and knowing the right time to place an offer.
- Sellers Will Negotiate
Every property seller is looking to sell their property at the highest possible price. Many home sellers will do anything they can to get the best deal possible. Depending on where you live, home markets can vary wildly according to location.
If there are many properties for sale in your preferred neighborhood, then you can be sure that you will get your dream home at a relatively lower price. But if you live in a seller’s market, things might be tough.
- A Lot of Paperwork is Involved
Whether it is paperwork related to your home insurance, mortgage, or the final offer, you will deal with a lot of documents in the home buying process. Many of these documents will be contracts.
If you have got the right real estate agent working with you, they will be guiding you through the process and advising you on what to sign and what to decline. One of the critical roles of your real estate agent is to handle the paperwork on your behalf.
- Purchase What You Can Afford
You should only budget for what you can afford. Sit down and establish how much money you can afford in down payment and how much you can afford in monthly payments.
Take time to consult with a mortgage expert who will give appropriate recommendations based on your specific situation. After that, get pre-approved before you start your home hunting process.
- Hire a Home Inspector
Whether you are buying a newly constructed or pre-occupied property, make sure that you get a thorough home inspection before you move in. The home inspection process will establish any potential problems that could cost you a lot of money in the long run.
The last thing you will want to do is purchase a home at a high price only to encounter expensive-to-repair problems a few months or years down the line.
- Understand the Investment
The truth is that your home is probably your biggest investment in life. Therefore, the more you understand the investment that you are making, the better. You may be tempted to go for most square footage that your budget allows (which isn’t a bad thing) but before you do so, ensure that the other factors of investment add up.
How is the location? What is the potential resale value? How is the roof? What is the state of home appliances? The best properties in the worst locations may not be great from an ROI point of view.