Buying a home is a huge thing for anyone. When I was buying my first home, I was very excited and worried at the same time. Worried about the decision making, worried about the finances and worried I might end up making a mistake while buying the home. There are a lot of things to consider when buying a home and one needs to be very patient when it comes to the home buying process. The first thing you need to understand is; a home is a huge investment, it’s probably the most expensive purchase you’ll ever make in a life time. It’s a life’s work to own a home, and you need to make sure everything is as perfect as possible. Overall, buying a home is a very emotional process. You need to be very when making a decision. There are a lot of things that a first time home buyer tends to ignore when buying a home, and this leads to making a wrong home deal.
9 Things to Consider When Buying a Home
When I was buying my home, i learnt a lot of valuable lessons. Here are a few things that I should have considered when buying my first home and things that a first-time home buyer shouldn’t ignore when buying a home.
1. A Home Buyer Needs To Think In the Long-Term
When buying a home, it is important to consider the future and plan ahead. You might have kids in the future and might need more space. When buying a home, you need to keep in mind that you might have to sell the home. Keep the re-sale value of the home in mind when investing in it. You might need to sell the property in the future, ask around and analyses what the value of the home will be in the next 5 years. Buying a house in a location that has bad schools or poor education will affect the education of your kids. Hence, when buying a home, it is very important to think in the long term. Always remember, a home is an investment and you need to make sure you make the most of it.
2. List down Everything You Are Looking for in the Home
The mistake I made was that I didn’t make a list of requirements i had for the home. I had them noted mentally, but not listed down on a notepad. It is important to have them written down, so that when you go to visit a home, you can check the list of things you want in your dream home to have. Always take a list of items you want your home to have when visiting a home. You also need to keep in mind that you might not find a home that fits your requirements completely. List down the things or features your home should have and set a priority. There are no perfect homes and a home buyer needs to be ready to make compromises.
3. Consider All Expenses When Setting a Budget
Setting a budget is important when buying a home. You need to check how much you can afford and how much you are going to spend when buying a home. When setting a budget, you need to make sure you consider the cost of transportation from the home to your work place, the utility bills you will have to pay. Also, you need to consider how expensive education in the neighborhood is. Budgeting also requires you to compare the cost of living in terms of how expensive the daily commodities in the neighborhood are sold. You also need to keep in mind the distance and cost of transportation to the nearest grocery stores and hospitals.
4. Check the Paper Work before Making a Decision
Before making any decisions about purchasing the home, it is important to take a look at the paperwork. Make sure the home belongs to the seller before selling it off. It is also recommended to get the paper work checked by the local real estate authorities. Having the paper work checked will help in eliminating any doubt about the home. If the paperwork isn’t right, you shouldn’t consider buying it. Home buyer often are un aware of the fraud involved in the real estate business, they end up buying a property that is missing some important documents. This also affects the re-sale of a home.
5. Research about the Best Mortgage or Source of Funding
As mentioned earlier, home buying is a huge investment. A lot of people can’t afford a full payment for a home and this often leads them to mortgage or a home loan. For a home buyer, it is important to research on the various financial schemes or funding sources that can help you in the home buying process. If you are going for a mortgage, then you need to make sure you have at least a 20% down payment ready for a loan to be approved.
6. Read the Contract and Then Sign
Before buying the home, you need to make sure you read the contract before signing it. Make sure the ownership is of the home seller, you also need to make sure the seller meets to the demands you might have made. Some home sellers agree to fix minor issues of a home before selling it off. Make sure those fixes are addressed in the contract before signing it.
7. Research and Learn about the Neighborhood
The neighborhood plays a very important part in the decision to buy a home. The better the neighborhood, the higher its price and the better the re-sale value after a couple of years. If the neighborhood is bad, you might end up investing in a property that loses its value. When buying a home, make sure you look around the neighborhood. Find out how good the schools in the neighborhood are. The quality of education will help in determining if the home is worth the price or not.
8. Look beyond Staging When Buying a Home
Staging is the process of making a home look attractive to make it sell fast. Home sellers stage the home and often demand for a higher price for the home. A first time home buyer needs to look past staging when they are buying a home. Look at the home in detail and it is recommended to consult a home inspector. A home inspection can help in identifying the faults in a home.
9. Do Not Be in a Hurry to Close the Deal
When buying a home, you shouldn’t rush into buying. Make sure you evaluate the home in detail and also do your research before making any home buying decisions. A realtor might want you to sign a deal quickly, but keep in mind that the decision is yours. A realtor’s job is to sell a home, and you might be pressured into making a decision. Home buying is a lengthy process, but you need to make sure you are satisfied with the home before closing the deal.