Home buying is often a daunting experience, even if it isn’t your first time. The size of the investment is massive, so the risks and challenges are huge as well. A wrong decision can land you in deep trouble, and you may land up in a home that isn’t just right for you. There is also a possibility of picking one that doesn’t fit your budget and makes life stressful in the long run. The only way to curb these risks is by having your facts clear before you sign the dotted line.
Unfortunately, most buyers think that researching the market and seeking expert guidance is enough. It isn’t because there is a lot more you need to know. The worst part is that the industry has some well-kept secrets that even the most reliable insiders wouldn’t disclose. As a buyer, you need to be smart enough to dig deeper and unravel these secrets that can keep you from making the wrong decisions. Let us share them with you.
Think strategically to buy in a hot market
Real estate experts from the hottest markets in the world recommend that strategic thinking sets you up for success as a buyer. Buying in a seller’s market is a challenge, and the most frustrating part is that most markets are hot in the favor of sellers right now. But gaining an advantage over the competition is easier than you imagine. You can use a smart strategy to get a dream house. Ask your agent to connect with the seller personally and gather some background information to go the extra mile. For example, knowing that a seller is planning to relocate gives you an advantage as you can get in touch with a worthy offer and close the deal quickly.
Watch your credit well before you go shopping
Finding a perfect home in a hot market is hard, and arranging funds to buy it is even harder. Thankfully, home mortgages put you in a good place, but you need a healthy credit to get approval. Expect the lender to do a lot of research before they approve the loan, so you must have an excellent track record to assure them about your financial stability. It makes sense to watch your credit well before you go property shopping. Applying for credit cards, moving your funds around, or making major purchases months before applying for the loan can hinder your chances of getting a viable mortgage rate. You can improve the chances by staying ahead of credit card payments and avoiding expenditures months before buying a home.
Save up for more than a down payment
Another financial secret that no one will probably tell you is that you need to save up a lot more than you expect before you begin home hunting. Experts suggest that you must have at least 20 percent of the property’s cost for a down payment. But that’s only the tip of the iceberg. You will need a lot more to cover expenses like closing costs, inspection charges, moving costs, and homeowner’s insurance. Consider saving up a few thousand dollars more than the expected down payment amount before you start looking for properties. Not having enough at the time of the deal can leave you heartbroken, so go shopping only when your wallet is ready.
Never sign the deal without inspection
Not every property is what it looks like on the outside. You may love the look and feel of a place when you see it for the first time, but living there can be painful if you find several flaws after moving in. The open secret in the industry is to get an inspection before you sign the deal, but gullible buyers often fail to follow the advice. A Snagging Survey of the property puts you on the right track because it ensures comprehensive inspection of the entire place. You have a written explanation of faults and issues, so you can easily bargain and get the best deal. The survey does add to your bill, but it will help you save substantially in the long haul.
Home Buying – Do not start without a wish list
Preparing a wishlist sounds so simple that most potential buyers forget to do it and end up landing in a property that doesn’t match their needs. Not having a list right from the start is the worst mistake a buyer can make. Have a detailed list of features you want your future living space to have, right from the number and size of bedrooms and bathrooms to layout design, material used, and location, proximity to your work and market, and more. Think of everything you require today and future needs as well. A list gives you a clear picture of the kind of house you want to buy, which will save you from falling for the wrong one and facing buyer’s remorse later.
Value isn’t about the size of the property
At times, you may get impressed by the luxurious size of a home and land the deal you will regret down the line. However, industry insiders suggest that buyers must not confuse value with size when it comes to finding an ideal living space. A large house may look enchanting, but never buy one unless you need it. Such properties are harder to sell, and you may get stuck if you want to downsize later. You can also expect to spend more on such houses as the annual taxes, utility costs, and maintenance charges run higher. Rather than splurging on a mansion, look for a smaller place that matches your needs and offers extra features for the same price.
Now that you know these secrets, it will be a lot easier to buy your dream home. The list can be of great help for first-timers, while seasoned buyers may also follow it to avoid making some common home-buying errors. The final piece of advice is to look for a place you love, but never make a decision you may regret for a lifetime.