Practical Tips to Real Estate Buyers: End Up with Your Dream House!
Real estate industry is where you can find highly valuable, engaging, and exciting assets. It is known for attracting investment regularly.
If you are a first-time real estate buyer or already have an experience of buying a property, you need to be smart with all your decisions at all time. This can help you end up with your dream house.
Did you know that starter homes are purchased very competitively? In fact, according to the National Association of Realtors (NAR), 52% of the houses being advertised during the selling season end up to first-time buyers. As a result, there is a competition or bidding war, especially with very attractive locations. This means that you need to buy the home you want as soon as you find the listing attractive so that you can avoid unnecessary bidding competition.
Here, whether you are a first-time buyer or not, you will learn practical tips for buying a real estate. Your goal is to find a house that can satisfy your needs and provide you a place you and your family can live happily, so there is no way for you not to consider the following.
GET PRE-APPROVED MORTGAGE
Being pre-qualified for a home loan is far different from getting pre-approved. That is because anyone can get qualified but getting pre-approved your home loan means that the lender has reviewed your financial information and let you know how much loan you can afford and how much money you can borrow.
Being pre-approved also means that you can save a significant amount of time and energy where you do not need to waste your time looking at houses that you cannot afford. You will have the opportunity to shop around and find the best interest rates and deals.
KEEP YOUR MONEY
Before buying a new home, make sure not to move money around 3 to 6 months, or make huge purchases. Your credit profile is important during your pre-qualification for your home, and your prospect lender needs to see whether you are reliable. If you plan to open a new credit card, buying several big-ticket items, or having too much debt can give you a hard time to get a loan.
TRYING TO TIME THE MARKET IS NOT A GOOD IDEA
It is not recommended to try to time the market for you to figure out the best time to buy a property. That is because attempting to anticipate the housing market is a waste of time and quite impossible.
Keep in mind that the best time to buy a real estate is when you find the perfect one and you have the resources to afford it. Real estate goes up and goes down and vice versa. So, if you are trying to wait for the perfect time, you will only miss out the opportunity.
AVOID THOSE SLEEPER COSTS
Sleeper cost is the difference between homeownership and renting. Many people only focus on the mortgage payment, making them not aware of other expenses, including homeowner-association dues, utilities, and property taxes.
If you are a new homeowner, you need to prepare yourself for paying potential property-tax increases, maintenance, and repairs. See to it that you will budget for sleeper costs so that you will not at risk of losing your home.
AVOID HAVING A BORDER DISPUTE
By getting a survey on the property, you are interested in is essential to know exactly what you are going to buy. For you to save yourself fro, any potential dispute with your future neighbors, you need to know where the potential property lines are.
Thus, it is best for you to have the accurate map drawn up since the property tax is based on how much property you may have.
BIGGER HOUSES ARE SOMETIMES NOT THE BETTER CHOICE
As a homebuyer, you may look forward to getting the most beautiful and biggest house. But, when it comes to houses, the bigger is sometimes not, the better option.
Biggest houses are only appealing to a few audiences. And, when you decide to re-sell the property, it will only limit you to find potential buyers. So, you need to be practical when it comes to the size of the property.
For example, if you pay $600,000 for a home while your neighbors pay around $300,000 to $350,000, your appreciation will be limited. There is no wrong if you are going to buy the worst house on the block. That is because the worst houses are traded for more than those biggest houses.
DO NOT USE YOUR EMOTIONS
Never try to buy a house based on your emotions. If you let this, you can make some bad financial decisions. This is where you need to win your instincts over your emotions.
When you use your instincts, you will be able to recognize which house is great and with good value. Being attached to the backyard or paint color is never a good idea when buying a house. Remember, you are investing, so you need to be wise and practical.
HIRE A HOME INSPECTOR
Buying a house is like buying a car. You will not buy it without checking it. So, it is a good idea to hire a home inspector.
A home inspector can help you acquire necessary information that can help you decide whether you are going to buy the property or find another one. Also, you can acquire an unbiased third party opinion.
For example, if your home inspector found some issues with the house, you can have a chance to lower the price of the home. So, it is better for you to spend to hire an inspector than to discover some property issues later on, which may make you ending up with huge expenses.
Get things in order and follow the above tips. Do not waste your time if you already get attracted to one house on your preferred location.