Buying a house is a capital-intensive investment. Thus, it is crucial to take a thoughtful decision rather than taking an emotional plunge.
Consider some key factors before you make a selection. These key factors include property price, your budget, location of the house, number of bedrooms, neighborhoods, etc.
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Let’s check the top six factors you should know before you buy a new house.
1- Set Your Priorities
Make a list of must-have features you are looking for in your house. These features may include the number of bedrooms, the number of bathrooms, kitchen layout, size of the garden, and a parking area.
It is best to set your top priorities before buying a house as you will not be disappointed and settle for something that is far from perfect. It will also help you narrow down your search.
2- Buy a House That You Can Afford
The crucial step before buying a house is to set a budget. It makes it way easier to shortlist a house when you know how much you can afford to spend.
Compare the price of the property that you desire to buy with the ones surrounding it to get an idea of the negotiation required to get a good deal. Consider the fact that you will also have to pay property taxes, utilities, maintenance costs, renovation costs, and other hidden expenses.
There are various sources, such as portal listings, realtors, and newspaper listings, to get a comparative analysis of properties in your preferred area.
Along with comparing the prices, you also need to determine your ability to make mortgage and insurance payments. When planning to take a loan, consider getting it pre-approved before buying a house.
3- Hire a Skilled Realtor
A realtor guides you through the buying process, facilitates negotiations, and shows you properties that fit your budget. Make sure to hire a licensed real estate agent who knows the current market and set realistic expectations in terms of price.
It is crucial to find a real estate agent who you can trust. Look for an agent who is a member of the National Association of Realtors. Some realtors also have certifications, such as CRS, ABR, and SRES. You can also take personal referrals to look for an agent. You can also take references from websites like 100commissionrealestate.
You can ask these realtors to provide information on homes they have listed and sold in the past year.
4- Consider Renovation and Repair Work
You will not require renovating the house if you are buying a newly constructed one. However, if the seller has not already upgraded or renovated the house, then you may have to incur the renovation and repair costs.
Some of the low-cost repair work includes fixing broken windows, paint, and fixtures. Other components, such as renovation, involve huge costs.
Consider factors, such as budget, legal restrictions, and time frame to complete repair and renovation, before planning a house renovation.
5- Negotiate with the Seller
The listing price for a house is generally a quotation that the seller wishes to make on the sale of their home, and it is often negotiable. Thus, as a buyer, you should initiate negotiation.
If the seller refrains from lowering the price of the house, ask for certain concessions such as repairs, contingencies, appliances, closing date, and contribution to the closing costs.
Sometimes, it is tough to negotiate when there are more buyers than homes for sale in the local market. In this case, work with your realtor to understand the market better and strategize accordingly.
6- Know the Neighborhood and Neighbors
Ignoring the neighborhood is one of the most common mistakes as you can change a house but not its location.
Check out the neighborhood houses on the block. See if there are any amenities in the locality, such as parks and grocery stores. Consider checking whether your commute time to and from work is manageable.
Put all your efforts to know the people in your neighborhood. Introduce yourself and start a conversation if you see them outside. Your neighbors can be a lending library, a source for advice, an intruder alarm, a package retrieval aid, an emergency babysitter, and a potential lifelong friend.
Final Thoughts
No doubt, there is a lot that goes into buying a home. You invest your time, effort, and money to find the perfect home for your family. Staying prepared can help make the process a little smoother. Understand your priorities, define your budget, check the location, know the condition of the house, check the surroundings, and tap into the knowledge of your realtor.
These factors will help you fill in gaps in your home-purchasing decision. The more you educate yourself about the process, the less stressful it will be. Buyers who know the factors to consider before buying a house are more likely to get the house of their choice
