Buying a house is challenging, especially for first-time buyers. Besides, there are a lot of requirements, tasks, and steps to consider, not to mention that you can be anxious regarding making a costly mistake.
However, first-time buyers enjoy special advantages that encourage new entrants in real estate. To help demystify the entire process and get the most out of your purchase, the following is a rundown of what you should consider:
1. Choose the Right Home and Neighborhood
Weigh both the advantages and disadvantages of various kinds of homes, considering your budget and lifestyle. A townhome or condominium can be much more affordable than single-family homes. Though a shared wall with your neighbor can mean little privacy.
Alternatively, you may opt to purchase a fixer-upper requiring some repairs or updates. Normally, fixer-uppers sell for less than move-in-ready houses. But you will need an extra budget for remodeling and repairs.
2. Opt for a Home Loan
Buying a house is a great step. It can be a source of frustration and anxiety, but it might as well be a sense of achievement. With zooming property rates, purchasing a house through your savings is hard.
Nearly everyone has to avail of a home loan. Usually, home loans guarantee a lot of benefits to most home-buyers, especially those doing so for the first time. Some of these benefits include:
- Capital appreciation
- Tax benefit
- Low-interest rate
3. Deal with a Realtor or Real Estate Agent
It is important to deal with a professional realtor or real estate agent, especially if you are looking to buy the right property. Realtors and real estate agents serve as local experts who are professional in your local market and home-buying process.
A professional realtor and real estate agent may help you in various ways. They may help by showing you real estate properties, submitting offer letters, attending closing on your behalf, and attending showings.
But remember that only the buyer’s real estate agent can work on your behalf. Don’t depend on the seller’s agent to put your interests at heart.
4. Negotiate Thoroughly
Knowing how to negotiate is important. And this is one of the situations a realtor may help too. You may need to negotiate when the seller doesn’t accept your offer.
You can as well do so when the inspection presents issues. It is possible to work with the potential seller to handle those issues before buying. You might also ask for credit against the cost to fix those issues yourself.
5. Consider Putting Contingencies in Writing
When looking for a contender, ensure you are clear regarding contingencies, which will allow you to turn down your offer. These may include home inspections revealing expensive issues.
If those terms are spelled in writing with deadlines, you can have an out when the transactions fail to go as you planned. In case there are issues with the house, be sure to get an estimate on upgrades or repairs. It will also help a lot to have a real estate lawyer by your side to review your contract and even protect your rights.
Regardless of what type of home you decide to buy, a good place to start is with the mortgage preapproval. This preapproval will help a lot determine what you may afford and even make enticing offers to sellers.