Your dream home
One of the biggest investments of your life you will make is buying a home. It can be an exciting time, but it’s important to take your time and do some research before making your purchase.
The real estate market is always changing, so there are many practical/logical requirements that you should know about when buying a new house. This blog post has 10 tips for first-time home buyers!
Tip no. 1 – Research the area
Mistake –
Most of the time, when you buy a house, you are financially ready. Therefore you might not give several rounds or visits to the colony or locality you are shifting, as that becomes the second priority to finance.
Solution –
Before you buy a home, research your new neighbourhood.
Is it safe? How is the commute to work? What are some of the amenities around there and what kind of schools are in close proximity to where you’ll be living?
It’s important that all aspects will align with your lifestyle needs and wants so make sure you can see yourself happy here for years to come!
As this is a home you are buying and not any pair of shoes which you keep changing, it will not just affect your personal lifestyle but your coming generations also.
Tip no. 2 – Financial planning – Budget preparation
Mistake –
The most common mistake people make is they are not realistic about their budget, or the monthly payment for a home purchase.
Solution –
This is an important part of your decision as it determines how much you’ll spend ultimately and what should be proper planning for you.
Remember that there are other costs such as taxes, homeowners insurance, repairs etc., so make sure this all fits into your financial plan before buying!
Tip no. 3- House inspection
Mistake –
You bought an amazing dream house but after a month or two, it starts leaking or showing the presence of other living creatures than you – termites or rodents.
Solution –
Check for common problems like termites or damages from floods which can be found with a simple search online as well as doing your own research about local history, whether it was affected by hurricanes etc., this way you’ll have peace of mind knowing ahead of time what might need a repair later down the road.
A good tip would also be to get pictures taken during different times of the construction period or during any calamities, this way you’ll be able to know the condition and
Tip no. 4 – Insure the house
Mistake –
You put all the hard-earned money into buying the house and now, because of some accident, the house is no more. The house, as well as the money – both, are gone.
Solution –
It is very important for one not just to buy a house but also buy an insurance plan for it from experts because in unexpected events these are going to come in handy.
Insurance not only provides the actual relief in times of unforeseen events but also provide peace of mind which is more important to enjoy living in the house.
Tip no. 5 – Understand the process of buying a house
Mistake –
Buying a home can be confusing. There is no such thing as an easy process to buy and own your house. To make it even more difficult, one might not know what to ask for when negotiating on price or how to talk about the property’s condition with the seller.
Solution –
One should read up all about buying a home before stepping into this huge responsibility by reading blog posts like this which will provide you with some tips related to this topic like-checklist of things needed before going ahead in buying a house, common mistakes made while buying homes etc.
There is no straight-jacket formula for buying a house. You need to focus on all the negatives because in the process of buying you will come across a lot of positives about the specific house.
No one will sell a house to you stating that ‘this house is old enough to fall down or it has termite issues. You yourself have to stay alert mentally to make sure you do not fall into the trap of sellers or agents.
Tip no. 6 – Keep an eye on the age of the house
Mistake –
Buying a new house thinking that it has all the latest things and it will be structurally sound. But, it might not always be the correct choice.
Solution –
It is very important that you buy a house looking at the age of the house.
An old house can be beneficial sometimes because the price will be cheaper and it would have been repaired by now.
The only problem with old houses is some people do not like them as they believe there might be termite issues or structural problems.
On the other hand, a new house might provide all that an old one couldn’t. So, better make all possible balances of old and new – gains or losses, respectively.
Tip no. 7- Run credit report first
Mistake –
Bought a house – gave a house welcome ceremony – all are happy. But another day, you get a notice of fulfilling the outstanding loan on the house.
Solution –
You need to make sure all documents related to real estate transactions-title, deed etc are in order before buying any property for sale.
There can be cases where new owners may find out after purchasing their dream house that there were outstanding liens against the seller’s title which could delay closing on the purchase of a new home.
So when checking if these documents are correctly executed, have an experienced advocate or a real estate expert with you.
Tip no. 8 – Examine the purpose of buying a home
Mistake –
You bought a house in a very lavish society, but you are not going to live in it. You already have another home and this is just another investment of yours.
Solution –
The basic thing before the final decision will be examining the actual purpose of the purchase.
Why are you buying this real estate? – Keep asking this to yourself if you are not sure about the purpose.
Ultimately, you will come with a final answer about the purpose of this big step in your life.
If it is to live in this home, then try to be more practical around the living atmosphere of the surroundings (your future neighbourhood).
If it is just another investment and you are not going to stay in this house, then try to be more practical about the future value of this property.
Your real estate agent needs to make sure that you buy the house in a society where it is possible for your rental income to produce enough money to prove that you made the right decision.
Tip no. 9 – Real Estate Agents and their commission
Mistake –
One of the most common errors buyers do when buying property is not negotiating well with agents about who pays for what, such as how much they will be paying upfront and on closing day.
Solution –
It is very common to lament after purchasing a house because you paid a lot more than needed, to the agent.
You need to know whether or not there are fees associated with putting an offer in on a specific property (e.g., brokerage fee) or any HIDDEN FEE.
Finally, if someone else has already put an offer down on the same piece of land before them, then they open themselves up to competition which can involve bidding higher than they would normally.
Always use genuine sites or trustworthy people as an agent to the house. Otherwise, you may face setbacks down the road.
Tip no. 10 – Abide by the law
Well, this is more like a caution than a tip. As this is common sense to do everything respecting the law of the land.
Mistake –
Buying a house without respecting the law or doing a transaction which is bad in the eyes of law.
Solution –
One must never take the law into one’s hands. Always go in the direction, which the law says.
Never trust anyone who asks for money in an illegal manner. Never try to bribe the law enforcement agencies or anyone related to the inspection.
The only thing which can save you from an adverse situation is the law, so try not to play any dirty game with it.
In India, RERA Act has been introduced to make sure there remains no fraud or cheating in terms of buying and selling of flats or independent houses in a society.
Conclusion
The tips shared in the article are important and should be followed carefully.
One must buy a house according to the law of that land, never take any illegal steps related to it which may not only harm you but other people too.
Try to give the property as much research as possible. Examine the purpose of the purchase and then proceed.
Always keep in mind the budget, never overestimate yourself and refrain from falling into the debt trap.
Home is where we live at peace with ourselves, our neighbours, friends & family; this quote by John Lennon says it all.
Finally, do not follow the agents or property websites blindly. Remember, you are their clients, not family.
Investing in real estate is a very wise thing to do. Go ahead keeping these points in mind.
