Buying a home can be very stressful. Financially and emotionally, home buying can be a real strain. Whenever you are buying a new house, or if you are first time home buying, buying a second home, or simply downsizing after retirement or when the kids have left home, there are some very useful and common tips to take heed of.
These general tips in buying a home can help make the decision making when purchasing a house, easier. In fact taking on board any useful advice can sometimes make the difference between a bad property investment, and a wise, and profitable one.
It is also prudent to remember that while researching on the net can help you in your overall information gathering and home buying decision making, it is almost always best when you learn about you target property market from the horse’s mouth, so-to-speak. The local real estate agents, mortgage providers, and property home inspectors will have a thorough home buying knowledge base as it relates to the particular that you are interested in.
Also as a general rule when buying a home, it is usually best to base your home buying decisions on the sound research and professional advice that you have gathered, rather than purely on an emotional reaction. There’s no getting past that home hunting is inherently emotional for most of us, but it is always wise when making very important financial choices such as buying a home that we keep our emotions in check.
Five basic but important home buying tips are:
- Secure you home financing before you get the home – this can have several advantages including avoiding the disappointment of missing out on buying a house that you set you sights on; Shows the listing agents that you are a serious home buyer, allowing for greater power in negotiating; Gives you greater guidance in looking at the right houses and suburbs that are within your financial reach (no time wasting); Gives real estate agents a better understanding of the home to show you.
- Shop for the community and neighborhood, not only for the home – considerations that you should be making are about the various infrastructure that is available in a particular area such as schools, recreation centers, shops, public transport, libraries, the quality of the surrounding homes, crime rates (often this will affect the affordability of home insurance), distance to your work etc. Keep in mind that buying a fantastic home in the wrong area can often prove to be disastrous. A good way of getting to know a neighborhood is to hang out there for awhile, and speak to the locals to get their take (don’t rely only on the the realtor’s information as they will often “oversell” a location).
- Make your first home offer a fair one – drastically low-balling a seller can often cause angst and mistrust and can affect further negotiations, or you may simply lose out to another home-buyer. Most sellers will have a good idea about what a reasonable starting point should be. Researching recent sales in a suburb, and making comparisons to similar homes will give you a good ballpark idea. Having this prior knowledge will help you in not overpaying for a property, nor underbidding on a home.
- Always, always, always get a professional home inspection – while this will cost you up-front, in the long-run it could potentially save you thousands (or even in some cases, hundreds of thousands). A professional home inspection from a qualified and reputable home inspector will uncover any faults or potential problems relating to the structural components, pest or termite problems, plumbing, electrical, roofing, fencing, drainage, and so on. When compared with the cost of the house, a home inspection is negligible, and can really buy you peace-of-mind. Also any faults that are picked up can put you in stronger negotiating position.
- Try to keep on good terms with the vendor or home seller – this can avoid disruptions to the process of buying a home, and can allow the whole home buying process to run smoother. Remember to be fair in your negotiation, and don’t nit-pick every little fault you can find. Understand that with an older house there will always be some faults (that’s not to say you should put up with significant faults, but if you want the house, some smaller problems might just have to slide). Keeping the good will between you and the seller will make the whole process feel better, and give you a great start in your new home.
