Your Guide To Buying Your First Real Estate
Buying your first property is one of the major milestones in life. In theory, it sounds pretty simple, you like a house and you buy it. There’s basically nothing wrong with that, but in reality, things might turn out to be a bit more complicated, and buyers can make some costly mistakes along the way.
It is important to be well prepared and know exactly what you want and decide where you’d be willing to make compromises and where to draw a line. Being on a lookout for property myself, I decided to talk to Neuman & Neuman Real Estate to try and get some advice on what to consider when purchasing my first home:
Pick The Right Real Estate Agent
This is the person you’d be putting most of your trust in. Their word for you means a lot, especially when you are new and have little to no experience. Just as you wouldn’t buy the first house you see, the same way you wouldn’t hire the first agent you talk to.
It is important to do a little research, ask around, check social network comments or just go door to door and talk to your potential agents and see who you can trust most. Qualities you are looking for are good skills, motivation, experience and knowledge of the market and local area.
This is your money, your investment and you need to be able to build a trusting relationship with your agent so that you eventually purchase a property which fits into your frame of needs, wants and possibilities.
Know What You Want
Before you actually start looking at different condos it is crucial to know exactly what you want. You shouldn’t only consider your current way of life, but also put some thought into the future and map out a period of approximately next 10 years in a new house. Whether you currently live alone or with a partner, you need to think ahead and find a house that can suffice a future family needs.
Another thing to consider is property value because you should always be able to sell and move on to something different. Carefully study the market and inform yourself about current prices and choose your new home accordingly. It’s not the best idea to invest in an expensive house in a neighborhood where people are willing to pay only a certain amount of money. By doing so you’d be making it harder on yourself to sell later.
Your investigation does not end after you find the right house. Choosing an ok neighborhood is another aspect that shouldn’t be disregarded, not only does a good neighborhood make life much easier, but it also adds to the value. Research nearby schools, and how far are they from the house. Check crime statistics and how safe the area is, especially if you plan to start a family. Make sure you have all the necessary amenities around like hospitals, banks, dentists, pharmacies, grocery stores, etc. Traffic and noise it makes need to be checked as well. You can drive through the area for a few days and scout.
Mind Your Budget
Determine your budget and stick to it. Since there are many unexpected expenses that can suddenly pop out when you finish the purchase it would be wise not to spend the entire sum and be left stranded with ongoing problems you don’t have enough money to fix.
Real estate market is competitive and sometimes one house can have a few offers and, of course, the best bidder wins. You shouldn’t get in over your head and buy the property, by all means, you can very easily fall into a trap of high mortgage you can’t afford.
You need to reduce that risk and bid only on sums lower than your estimated budget, no matter how tempting some offers might seem, you always need to think a few steps ahead.
Don’t Hesitate To Ask Questions
The purpose of open houses is to have a closer look inside out. This is sort of a test drive before you decide to buy and this is where you need to check every little detail and ask as many questions as you can think of. Do it yourself or hire an investigator to make this job much easier.