Buying a new home is a very emotional experience; there is no doubt about that. The danger here is that it is a huge investment and not very easy to rectify if you make bad decisions. Whether you are trying to get away from noisy neighbours, starting a family or desperate to get out of your parents’ basement, think long and hard before signing on the dotted line. You do not want to be stuck in a house that is riddled with problems, unsuitable for your needs or costs you a lot more than you budgeted for.
As with all things, the more you do it, the easier it becomes. Buying your first home is especially daunting. We are going to share 7 important factors to consider to make this process a little easier.
1. Know Your Budget
This is the first and most important step to take, before you even start looking at properties. Analyse your income and expenditure honestly and realistically.
Be aware of and understand all the additional expenses but initial costs as well as on-going costs. Remember things like the cost to move your furniture and new things you may need to purchase such as curtains or security features. Also consider the additional charges for taxes, insurance, utility bills and maintenance.
Know your budget and do not let emotions sway you too far from your plan.
2. Get The Best Mortgage Possible
Your mortgage is basically a long term loan to purchase the property that uses the property as collateral. The mortgage market is highly competitive and has become increasingly more complex. Understand all the costs and charges as well as their future and long term effects. A minor difference in interest rates, for example, can add up to a significant amount of money over a 20 or 30-year period. Shop around for the best rates and terms you can get.
3. Get Pre-Approved Finance
This is not only important for your own peace of mind but also gives you great credibility with the seller and agents as well as increasing your bargaining power.
4. Make A List of Your Requirements
You need to have a clear understanding of exactly what your requirements are and when you need in your new house. A checklist will help you with this, especially if you view multiple houses in a day. For example, if you want to buy a home in Turkey, consider looking at Turkey real estate sites that offer details on available options.
5. Work with a Reputable Real Estate Agent
Estate agents are there for a reason and provide a valuable service. Not only can they save you a lot of time but they can offer you professional, useful advice. They often have an intimate knowledge of the area and the market in which they operate.
They should be able to advise you on recent house prices in the area, schools, lifestyle, future developments and a host of other important information.
Find one you can trust and work with and take heed of their advice. Having said that, still do your own homework to verify important issues.
6. Understand and Negotiate the Offer
Once you have found your dream first home and it is within your budget, do not let emotions run wild. Negotiating an offer is a bit of an art. The more research you have done, combined with the advice of your agent, the stronger your position will be.
Factors to consider include the historical selling prices of similar properties in the area, the number of other similar houses on the market at that time and how long the house you are considering has been on the market.
Understand that negotiating is a two-way street and both parties want to get the best possible deal. Do not get despondent if your initial offer is declined.
7. Invest in a Home Inspection
This is always important but particularly relevant for the first time buyer. The report will give you the peace of mind that you are aware of exactly what you are getting for your money. Some things are better left to the experienced experts.
House hunting can be a bit nerve racking but if you follow the advice given above, the task will be that much easier. Don’t rush into anything and do spend some time on research. Do this and you will soon be happy, comfortable and safe in your new first home.