First Time Homebuyer Tips
Purchasing a home is one of the biggest investments in your life. And to make the most out of informed decisions, it is crucial have the right market knowledge, planning and adequate support. The challenge of purchasing a home for the first time can appear daunting that it would be tempting to either pursue with the first house that fits your price range or just continue to rent. By partnering with a sharp and experience realtor, you can rid of the nasty pitfalls that many home buyers make every year, save money and spare yourself from a lot of anxiety. Here are fresh tips to help first time home buyers stay on track to homeownership.
Know what you need before shopping.
Before even viewing houses, make sure you list down all the things that you need and want in a house. How many bedrooms do you want for a house? Do you need a one-car or two-car garage? Is a big kitchen more important than a den? As soon as you begin shopping around, you will like several homes for different reasons. But unless you know your priority, you will more likely end up with a property that you will regret along the way. Divide your list into categories that will outline the things you ‘need’ and ‘want’ in a house.
Never shop without securing a pre approved mortgage.
Securing a pre approved mortgage is the only way for you to know how much you can afford. It also shows sellers that you are a serious home buyer; this can be useful when you find yourself at a bidding war with other prospects that aren’t approved yet.
Partner with a skilled and experienced realtor.
Purchasing a home can be a very daunting task for first timer and that is the reason why it would be wise to work with an expert in the field. A realtor will also have a team of professionals to help make the process smoother and more efficient such as home inspectors, lawyers, lenders and etc.
Tell your realtor the features you want in a house.
It would be crucial that your realtor will also have a clear picture of what you want. You don’t want to waste time on homes that don’t match your preferences. A good real estate agent will ask you the things that you are looking for and listen intently to your answers.
Location is superior.
A property’s location is perhaps the most important factor that affects the resale value and desirability of a home. There are several elements that make up a good location including quality of schools, accessibility to workplace and service centers, security, recreational facilities and so much more. Every neighborhood as its own character and it would be wise to explore it carefully. Are properties fenced? Do children run all over the place? Houses near boundaries tend to be more valuable than others. Other things that can affect a residential property’s value include sounds, smell, noise and traffic. Scout the neighborhood before making that offer.
Guard your heart.
Keep your calm and never show the seller how badly you want his/her property. This will increase your chances of getting a good deal out of it. Try to keep a low and conservative profile when shopping around for homes, no matter how bad you want it.
Be very cautious on the red flags.
Know the acceptable and unacceptable issues when evaluating the good points and drawbacks of a certain property. Some of the usual issues that will likely encounter include worn carpeting, peeling paint, bad wallpapers, & etc. You can also use these in negotiation for lower prices. Don’t let yourself to be blinded easily by a home’s good attributes when it has serious problems such as bad plumbing, water damage, foundation cracks, old electrical systems and signs of rot.
Hire a skilled home inspector.
Working with a professional home inspector can be one of the best investments that you can make in your home buying experience. A typical inspection will cover electrical, plumbing, heating, foundation, ceiling, attic, porches, patios, drainage, garage, decks and roofs. A written report is a powerful tool when you are trying to negotiate the price of the property.
Consider your future needs.
You can stretch your budget a little today and leave room for growth, whether it is a home based business or growing your current family.
Ask your realtor for a written comparative analysis.
Ask your agent to prepare a written comparative analysis of the market to make sure you don’t offer too little or too much money for a certain property. This report shows the sale prices of similar properties in the neighborhoods and in surrounding areas currently sold in the market. You can also use this as a negotiating tool to the seller.
Move quickly when you are ready to purchase.
As soon as you have decided on a home, make sure to make crucial decisions quickly because good residential properties move fast. If you still don’t feel right about a certain home, then don’t pressure yourself to sign the deal.
Know any hidden costs.
There is more to buying a house than a mortgage. You also need to shell out money from your very own pocket for mortgage insurance, inspection fees, appraisal fees, transfer taxes, title insurance and so much more.
These are just some tips to help you get through the first time home buying experience successfully. The more you educate yourself, the better deal you can make out of it. So consider whether you are ready for the effort and expense of homeownership before even pulling the trigger.