Perils of being a first-time homebuyer
If you are buying a home for the first time, then it comes with its own share of challenges and tensions. It is not an easy job or an easy and quick decision to take. You are sure to have a picture of your dream home but you are treading in unknown and unfamiliar territories. There are various aspects you have to check before buying a home because it is one of the most important investments you will make in your life. Be ready to face obstacles along the process of buying. But then we want to make you aware of some crucial points or tips that you should consider while purchasing a new home. We also want to save you from some usual mistakes that new home buyers make. This blog will guide you in purchasing your new home, reduce your worries and tension, and make you ready to take the plunge.
1.Definitely go for a Home-Inspection
A home inspection is a health check-up of your home. It is the examination of the current condition of your home. You should mandatorily go for a home inspection of your new home to know the exact shape and condition it is in. Always ask your broker or real estate agent whether the property is inspected before closing the deal. That way you will be aware of all or any defect/s that are there in the home and can rectify them accordingly. Knowing the health of your home will also help in future upkeep and maintenance. Since home inspection will help you to know several issues like damp/seepage, electrical, plumbing, material finishing, and installation, etc., you will get a clear picture of your home and proceed accordingly. For more information on Home Inspection, please read- https://macj-abuyerschoice.com/home-inspection-learn-basics/
2.Carefully choose a broker/real-estate agent
Considering your knowledge is not very compact and strong about the real estate industry, or your lack of experience in buying a new home, you should be very careful while choosing the broker or real estate agent. While choosing a broker or real estate agent, consider referrals, ratings, reviews, go through lots of lists, do your homework thoroughly before giving the big responsibility for hunting the homes for you. You should also talk to as many of them as possible. You should also ask them the question that whether they have handled first-time buyers. Understand who is ready to guide and help you and outsmart you. The moment you feel uneasy, come out of the deal. The agent should extensively scour the market based on your needs and criteria. The agent must guide you in every step and help you negotiate and close the deal. The agent must also communicate the plan that he/she has chartered for you and do not keep you in the blind about anything.
3.Pick the right neighborhood
Your mind is filled with images of your dream home. From how many bedrooms you want to the bedside lamp you will buy; from the plants, you will keep on your balcony to the cozy armchair that you have pictured in your mind where you will sit and sip your favourite coffee. Though your thoughts are justified, you still have to think beyond and think realistically. You have to think about the neighborhood also. Of course, you don’t want your dream house to be in the middle of nowhere or in a clumsy, dirty, congested alley! You should check out the future development plans in that neighborhood, whether it will be easy to commute to your workplace every day during rush hour if there are patches of land, what is going to come up over there in the next years, are home values in that neighborhood is in decline or in the rise? Find out the pros and cons of the neighborhood before committing.
4.Strictly stick to your budget
Please make up your mind to stick to your budget stringently. Suppose a lender is making an offer that is beyond your comfort zone, but you have to have control over yourself. You have already calculated how much you can repay per month, stick to that, and do not give in to his/her offer. Set a price range and don’t step out of your comfort zone. In fact, look for properties slightly below your set price range; in that case, you will always have room to think about.
5.Buying a home is not the end of your expenditure
First-time home buyers; please note that after buying a home, you have to do Mutation and Registration of your home. You need to pay Corporation Taxes only after the Mutation is done. If you don’t pay now, 5-10 years down the line, a huge amount will be accumulated and then you have to pay it up by hooks or by crooks otherwise you will be deprived of basic facilities such as water, telephone, electricity, etc. There will loom the possibility of legal inconvenience.
6.Do not empty your savings
After you buy your new home, whether it’s a resale one or a completely new one, you will have expenditures to incur. It can come in any form. It can be a major repair, something that’s damaged or it can be the little or many things you have always planned to buy for your new home. So you should make a provision from beforehand for the unexpected as well as the expected expenses that might come along your way.
7.Not just Mortgage payment, but also additional payments
Do not have the misconception that if you are ready to pay a mortgage home loan that means you are ready to buy a home. There are many other things that you have to pay that you might have missed while calculating your financials. You also have to take into consideration the payment of water bills, property taxes, electric bills, insurance, maintenance, etc. These are recurring costs that need to be paid on a time basis. Therefore it’s not only what you can afford now, you need to plan for increased costs later on also.
These seven points are not the only points that you need to keep in mind about buying a home for the first time. Think of it in this way; that you are aware of seven solid points/tips that will help you to get near to your final decision of which home to buy. You really need to research a lot, be patient, give it a lot of time and plan ahead. These points will surely take away some amount of peril and stress and give you the confidence to embark on a happy, yet long and distressing journey of buying your first home….your dream home.