Four Great Tips When Buying Your First Home
There are so many things to know before buying a home, and even if you have owned and sold homes in the past, there may be things that have changed. Here is an attempt to share with you the tricks of the trade, and perhaps the secrets behind the scenes:
No. 1 Spend A Bit More Than You Planned
While this seems to defy logic, there is some merit to spending a wee bit more than you initially intended. Say your budget is $350,000 USD. Well, it really won’t break the bank to buy that dream house for $375,000. Why? Well, for one— your monthly mortgage payments will really only be around $15-20 more per month (depending on interest rates). Perhaps just give up your daily high-end coffee? Plus, that dream house has everything you want; it has the granite countertops; the walk-in closets; the finished basement. These are the things you will eventually add to the less expensive house; thereby, spending that $375,000 in the long run.
No. 2 Keep In Touch With Your Lender Throughout The Process
We have mentioned that stretching yourself a bit when it comes to price can increase your profits in the long run, but you still need to be very careful that you are buying something that leaves money in your budget to buy food. Avoid being house poor! Your realtor and lender should be able to help you decide whether or not the home is truly affordable and within your means. They can help by listing all the known costs that come with the house. Home owners insurance, property taxes, typical monthly electrical bills of past owners, home association fees etc… These are all items that must be included in your affordability calculations. Buy smart and don’t dive into something that ends up drowning you in debt.
No. 3 The Offer
This is apparently the most stressful part of the entire home buying process. Here is where you hand it all over to the realtor and expect them to negotiate like a shark. Keep emotions at bay and know there are always other houses on the market if you lose this one.
No. 4 Tell Me The Truth: Full Disclosure
Of course, realtors and sellers have a legal obligation to reveal pertinent things they know about the property. Things such as past floods, restorations, and future building proposals in the vicinity are all topics that should be revealed to a potential buyer. Wouldn’t we all like to know if a baseball field is proposed for construction across the street? Although, sometimes the realtor is in the dark just as much as the buyer. Your best bet is to hire a trustworthy realtor. Ask your realtor to do some leg work for you (that’s their job after all). A trustworthy, reputable agent is paramount to discovering the real truth behind the walls of your potential dream home.
Are you still feeling ready to buy or sell your home? I suggest you hire a trustworthy realtor with a steady business and track record. Don’t be shy about asking questions, and certainly be willing to walk away from negotiations no matter what your realtor or anyone else says. Despite all the negative things that can take place behind the scenes, home ownership is an exciting prospect when you are truly prepared.
Give me a call to dicuss your real estate needs! I look forward to working with you.