Buying your first home is going to be stressful and exciting simultaneously. The truth is that the home is a huge investment and mistakes can easily be made. Research along with picking a quality real estate agent can help set you up for success. Once you have been through a home purchase you will understand what to watch for. You need to know what you are looking for as your wants are different than your needs in terms of the home you buy. You want your quality of life to be as high as possible so setting a realistic budget is also essential. Below will highlight the lessons learned after purchasing your first home.
Figure Out What You Can Conservatively Pay
Conservative home buying is recommended as there are so many unexpected costs that come with maintaining a home. You might not realize this if you have lived in condos or townhomes where an HOA takes care of a number of things. You might still have to pay the HOA fee for your neighborhood which is why so many people avoid these communities. The last thing you want is to have to sell for financial reasons when the local housing market is down. An online mortgage calculation tool can be so important when trying to estimate overall costs monthly.
Jump On A Home You Love Quickly
Homes can have multiple offers within a few days of the home being listed. Viewing the home is always important as some pictures are far more impressive than the home might actually be. Offers in certain areas need to be at or above the listing price due to the competitive nature of some real estate markets. Cash offers are very attractive to some sellers which is something to consider if you can do this financially.
Your Agent Might Just Want To Close The Deal
Agents are motivated by money and a few thousand dollars that matter to you don’t impact their commission total very much. Some agents will even cut their commission to get the deal to go through. Agents are in sales so the more time they spend with one client, the less time they are spending potentially closing other sales. A close friend that is an agent might go to bat during negotiations while others might stay far more passive. You want a personal referral or someone that you trust to close your deal.
Problems During The Inspection Should Be Negotiated Upon
Problems during the inspection might arise and it is important to take them seriously. The inspection will cost you a few hundred dollars but could save you thousands in hidden repairs. A mortgage company is going to require an inspection to be done as they want to recoup their money on the loan. Cash buyers can bypass the inspection although this is extremely risky as a faulty roof can leak leading to water damage and potential rot.
Purchasing a home is going to be an undertaking that you want to avoid after your first home purchase. Learn from mistakes you or friends/family have made in the past when buying a home.
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