5 Mistakes You Should Avoid on First Time Buying Home
Buying/selling a home is an exciting process but at the same time full of complexities.
Your home is your most precious and largest investment which is why you need to be very careful before purchasing it. People usually do not get prepared before making a purchase decision. They get dominated by the market rules or the seller. There are so many things involved which make this process on pins and needles. The first time home buyers usually are not prepared and not have enough knowledge to excel into this home buying process.
A human tends to get more than what he can afford. This human nature puts him in trouble especially with his assets. Buying a home can disclose many unknown market facts to you which is in fact good for house hunting process. There are certain things you should pursue before making any purchase decision which can save you from any setback.
#1. Carry out enough homework
This is where most of us go down – the lack of proper research.
Purchasing a home is not only about looking around a home that looks you attractive, pull money out of your pockets and that is it. If you are buying a home, you will look for a better deal at your end. Every element is worth considering throughout the process. The research of getting the most authentic knowledge regarding the home is necessary.
Keep in mind that you are not only buying a home, you are investing in your future. Most of the buyers think that if they are getting a home at the desired deal, they are on the upper hand. Before purchasing a home, you must understand your family’s needs and the budget. Do proper research about the neighborhood, the activities of people who live around, the distance to the nearest grocery, the schooling level in that area etc. These things are counted once you start living at that place.
#2. Get pre-approved loan in hands
The thing that matters the most during the buying process is the lack of money in hands. Many banks provide home loans with easy installation and many other benefits. It is smarter to have loan by your side when hunting for a house.
Many sellers do not wait for the buyers to get them money. Most of the times they are not even sure that if the bank would allow you a loan or not. It is wise to talk to your mortgage lender in order to save yourself from any embarrassment. Many first time buyers sign the house contract before having a sure loan what later creates trouble. Do not make a haste while choosing your finance package.
#3. Home inspection is a MUST!
Most of the buyers usually ask why they should inspect a home. Well, this is one of the major considerations to have during house hunt. Purchasing a home without proper inspection can lead to long lasting pain.
Every state has different real estate laws and rules. In some estates it is vital to have a home inspector before binding into some contract. In other states, the buyer has a right to cancel the contract anytime in case of any complain or weak foundation. They call it contract contingency.
You must know what your state offers with respect to these laws so you may not hunt blindly. During home inspection, if you do not satisfaction, go to some other place.
Home inspection discloses many facts which are hidden from the outside. From wiring to wall cracks, everything gets observed so you can proceed further without being into some turmoil.
#4. Hire a real estate agent to get the best
One of the very first mistakes the first time buyers do is to go for house hunting by their own. We suggest to contact a real estate agent before starting this journey. A realtor knows what exactly do you want and what budget you have. He looks around to get you the best deal and saves your time. A professional realtor collects the accurate details about the property you intend to buy. He doesn’t leave you alone in this whole process.
The first time buyers usually do not know the starting point. So here is all what you need. Appoint a real estate agent who is professional and have authentic reference so you can trust him with this investment. Buying a home is difficult and at the same time it needs expertise and experience if you want to get the best out of it.
#5. Negotiate wisely
Some experts do not suggest negotiation while other strongly advise for it.
What we say in this aspect is to negotiate wisely. When it is your first purchase, you may feel confused at this particular point. Before biding for a home, be very sure of the property’s market value and other expenses which this property will face in the future. Go for the right price. If you are a seller, the best deal for you would be the higher price but if you are a buyer, you would go for the lesser price. Once you have set a final price in your mind, do not negotiate on it. If the seller doesn’t seem to be in negotiation mood, give him some time. Not every property has the same market value which you should keep in mind while setting up for a price.
Make this home purchasing task easy for you but keep it in mind that you cannot get the best deals in the first place. That doesn’t mean to get hopeless with this setback. Do proper research and hunt for a house that fulfills your needs. Instead of jumping into the market trends, choose something which suits you the best.