Buying a first home is considered a milestone of adulthood, but it can be a difficult task.
The first time doing anything can be nerve-wracking, which is why many could use a crash course in the basics.
That is why this article will serve as home buying 101. It will offer a few useful tips about the whole process. Read on to find out more.
1. Find a Good Agent
The first rule of home buying 101 is to find the right agent. There are a lot of ways for a buyer to find a good agent, whether they’re looking for someone more local or a larger company.
There are a lot of ways to look for an agent, such as asking friends and neighbors if they happen to know a good real estate agent. Some check local newspapers or other publications to see if they have advertisements or advice. Others just drive around and see if one agent’s sign comes up a lot.
2. Have an Idea
Real estate, at least for a buyer, is all about priorities. It’s essential to know what’s important and even necessary before buying a home.
For instance, if a family is in need of a home with three bedrooms, two bathrooms, and would like one of those bedrooms green, it’s best to focus on the three bedrooms and two bathrooms. They can always paint later.
In some cases, the buyer may not know entirely what they want, and this is another of the many ways a realtor can be useful. Taking into account how many people there are in the household and what their budget is, they may be able to make a few suggestions.
3. Money Management
While you can purchase a home with very little down, it is recommended to pay a 20% down payment, and that’s just the beginning. There’s also homeowner’s insurance, security measures, and any new furniture or decorating the new owner might want to do.
It’s best to have some money saved up beforehand. And to be pre-approved with a lender.
Only take what is necessary. It’s easier to build up debt than it is to pay it off.
4. Home Inspection
One thing every client should keep in mind is to never close a deal before getting the home inspected. A bad home inspection is a game-changer.
A buyer may be blown away by a house and be willing to pay at or even above asking price, and then the home inspection finds termites. Now, the buyer may withdraw any interest.
This is just one example of how a home inspection can change things.
5. Plan Ahead
Know where you are in your life. Someone shouldn’t buy a “bachelor pad” if they don’t plan to stay single very long. Conversely, don’t prepare for things that aren’t likely to happen.
For instance, adding in a nursery before even dating anyone is a little too much. It’s a good idea for the buyer to take the time to think what’s likely to happen to them in the next few years or so. If children or a significant other aren’t part of that equation, don’t get an extra bedroom.
>> Free Resource: How to Buy a House Roadmap <<
Home Buying 101: A Review
Buying a home can be a confusing process, but hopefully this home buying 101 article helped to make it a little easier. It’s best for buyers to know what they’re getting into. They need to be prepared by knowing what they want and having some money set aside for it.
Also, they should have a home inspection done and get a good agent to help with it all.
