Buying a property is probably the biggest investment you will ever make – with long-term financial ramifications. It also calls for an informed decision and good advice from a real estate professional.
However, the real estate process can seem daunting, especially for a first-time home buyer. With the current real estate market, most people are uncertain of how to move forward with the home buying process.
Many potential home owners are to a great extent looking out for tips and advice to help them make the home buying process easier.
From the financing to pre-approval process and offer presentations, here are top home buying tips we believe everyone should know before they decide to purchase a home:
1.Research is the key to discovery
Property sellers will not call you with offers to buy a maintenance free-home with wonderful mortgages. You have to find the gems yourself! Reading available materials, talking to experts, and spending time looking at different homes and neighbourhoods will help you end up with your American dream home.
Looking for your home begins with carefully assessing your values, wants and needs, both for the short term and long-term.
2. Make a plan and get pre-qualified
Developing a home buying pan will help you focus on the important factors and organize the entire process. Loan pre-qualifying helps you determine the home price you can afford and presents you as a genuine prospect to the seller.
Planning and getting pre-qualified will keep you out of the panic mode and allow you to take advantage of opportunities. It also saves you both time and money.
3. Hire your agent
A typical real estate transaction involves a dozen separate individuals – from mortgage brokers, to insurance assessors, to buyer’s agents, bakers, inspectors and a number of other individuals whose actions and decisions have to be orchestrated in order to get a home sale closed.
It is the role of your real estate agent to expertly coordinate all these professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
4. Create your top 5 list of amenities
When shopping for a home, list all the features – lounge, private yard, etc., that are most important to you in deciding on which home to buy. Establishing your desires early enough will save you time shopping for inappropriate homes and will also keep you from buying a home on a whim.
Remember, your top reason for buying a home should be the value you are getting.
5. Sign a contract that protects you
Make sure that the contract you decide to put your house on allows you to arrange financing, inspect the home and negotiate any problems that you uncover.
Ensuring that the contract you sign will minimize potential legal battles plus much more.
6. Put yourself in the seller’s shoes
As a potential home buyer, you are about to make one of the most important decisions that will affect both your life and that of the seller. Take your time to understand why the seller bought the home, their reasons for selling the said property, as well as the home improvements they have or have not made.
This gives you a better position to evaluate the home and negotiate a better end. In the end, the home buying process excludes the professionals and comes down to the individuals buying and selling the home.
7. Secure financing
One of the biggest decisions to make before putting a contract on a home is how to finance the purchase. While you may find the thought of owning a home thrilling, the thought of taking on a mortgage may be downright chilling.
Most first-time buyers start out confused about the process and making such a large financial commitment. Create a chart that lists different types of fees, loans, and all least three mortgage providers.
8. Perform due diligence
Unlike most major purchases, once you finally buy a home, you cannot return it if it does not eventually work out like you expected. That is why home owner’s insurance and property inspections are so important.
A home owner’s insurance policy protects you against loss or damage to the property itself and liability in case of injuries within your property.
Paying for a qualified home inspection before you buy a home is not just spending “a little extra” for peace of mind – it is absolutely essential for anyone who does not want to spend thousands of dollars for repairs.
9. Protect your investment
To protect you both as a buyer, as well as the seller, it is advisable to purchase a home protection plan. A home protection plan, or a home warranty, is a service contract, normally for one year, which protects homeowners against the cost of unexpected repairs or replacement of their major systems and appliances that break down due to normal wear and tear.
Also, throughout the course of your home-buying experience, you have probably spent a lot of time with your real estate agent and you have gotten to know each other fairly well. There is no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.
10. Attend open weeks and think long-term
Once you have narrowed down the neighbourhoods, attend a few open weeks. Looking at homes that are up for sale – even if they are not a perfect fit for you – is a great way to learn more about the area. When you do eventually find a house you love, you will know how your place compares to better or worse homes in that neighbourhood.
When it comes to buying, a good strategy is to find the most affordable house in the best neighbourhood. If you buy at the bottom of the price range in a good neighbourhood, you will have more room to build home value.
Visit us during our Kitisuru Open Week on 26th August – 1st September from 8:00Am -6:00pm for an amazing open week experience. To secure your spot, call us on: 0724 – 002 605 or simply visit our website.