Many individuals who earn well or recently married couples who wish to settle into their dream nest yearn to buy a new house. Buying a home for the first time is both exciting and unnerving. Before you step into the real estate market for the first time as a buyer, consider these points that will help you sail smoothly through the whole process.
Type of Home
Are you the only person going to stay in your new home? Is your girlfriend moving in with you? Are you the partying kind who likes to invite friends every now and then? Do you have children? Keep these factors in mind to analyse your space needs. Not everybody needs a sprawling villa, huge apartment, or condominium. Think over how many bedrooms and bathrooms will be required. Remember not to overspend for any extra space.
See to it that the house is airy and receives enough sunlight. Are you willing to furnish your house, or do you need a pre-furnished house with all the amenities present? If you don’t want to invest in house decor, a well-furnished house is the right option for you. Check if the foundation of the house is strong, the walls are sturdy, and there are no major loopholes that make living there difficult. Make a checklist of the things that you need in a house. After you are done visiting a house, rate the house on a scale of 1 to 5; rate it according to the number of criteria fulfilled.
You need to pay attention to not only the house but also its surroundings. Find out who stays in the neighbourhood. Are they decent blokes or rowdy, crazy bunch of people? See if you can gel well with them especially if you are of the social kind. Many a time, people are forced to leave their house and find another for want of peace.
Find out whether the property has easy access to marketplace, gas station, coffee house, and other sources of entertainment. Is it far away from your workplace? When looking for a home, look not just for beauty but convenience too.
Budget is the top constraint for most house buyers. Determine your budget, and see if a property lies in that range. If you have a regular source of income or if you can obtain enough credit from bank, it is feasible to go for a house that is slightly higher than your budget. Analyse your credit history; do you have debt accumulation? Will a bank extend loan to you without any hassles?
You may hire a real estate agent to help you with home search, or you can skip him and go for online home search. Don’t get into the trap of believing that it is mandatory by law to involve an estate agent; these are gimmicks played by agents themselves. Don’t be in a hurry to finalize the property deal; look for an average of 7-8 properties before you select one. When you find a property that suits your requirements, ask them to let you inspect it once again. It’s highly likely that second thoughts about the property might lead to a change in your decision. Compare the self-ratings of different properties that you visit, and choose the best one.
One common mistake that first time house buyers make is paying more for a property that isn’t valued so much. To avoid this, approach a property appraiser to get a valuation done. An appraisal will help establish the fair market value of a given piece of property. Quite often, the value of a property is much less than the price that the seller is quoting. An appraiser report helps you negotiate with the seller effectively.
Home buying decisions are tough. You need to thoroughly consider the above factors before you finalise a deal. The same applies to commercial properties also; in fact the process is more complex and ridden with valuation problems.