Kevin Sheehan has a few tips on property management. Buying a home is always exciting but it can also be a complicated and daunting task, more so if it’s your first one. Although the purchase of real estate is likely going to be the biggest financial transaction that you ever make, most people aren’t as prepared as they should be going into the deal.
To help guide you, here are 7 ways to avoid the most common pitfalls that most new home buyers face:
- Proper Preparation is Key: Do your Research!
The first step is to understand your finances as well as your needs as a family. Analyze your assets and get pre-approved for finance before jumping into the house-hunting. When you do start looking, get to know the neighborhood well before you settle on the house you want because you’re not just buying a house, you’re buying the location, too!
- Choose The Right Mortgage
It’s vitally important to have your loan pre-approved, and not just pre-qualified so that you’re in the best possible position for negotiating. For best results, use an independent finance broker who can give you access to a wide range of lenders and finance products for you to choose from.
- Don’t Go Beyond Your Budget
You know that feeling you get when you find a home that looks very appealing but it’s way over your budget? Every home buyer has had that experience, and it’s important to realize that buying a home that is outside your price range could be detrimental to your finances in the future.
- Have The Proper Protection Clauses In Your Contract of Sale
Do not sign any papers until you’re sure that your interests have been fully protected. Don’t ever let agents fool you into believing that you can make changes later. Once a contract has been signed, you’ll only be able to get changes made by ending the existing one and renegotiating a new one – and the seller doesn’t have to agree to whatever you’re asking.
- Understand All The Costs Involved When Buying A House
Many people fail to account for the full costs that are incurred when purchasing a house. Make sure you are prepared for all costs that come with owning a home, including acquisition costs, valuation costs, rates, mortgage insurance, loan application costs, and even moving costs.
- Organize A Professional Building Inspection
Engage a reliable, independent professional to check your potential new home. Don’t use anyone recommended by the real estate agent. Even if the inspector presents you with a long list, don’t worry too much. It’s only because they are trained to find faults (even tiny little ones). Just focus on the major problems and leave out the little ones that can be easily repaired.
- Don’t Go It Alone
Would you go to court without a good lawyer by your side? No. In much the same way, a real estate seller has a good agent by their side helping them and looking out for their interests every step of the way – so why not do the same when you want to buy a house? Going solo is not a good idea. You need the same protection on your side that the seller has, so get a buyers’ agent to represent your interests.