For many people, buying a home is the only and most important investment in their lives. Be prepared to avoid huge mistakes when making a purchase. Here we have some tips to help a future buyer feel more confident.
Top Advice For the Buyers
1. Your Agent is Your Friend
National Association of Realtors report says that searching, paperwork, and understanding of the whole process are the top three most challenging tasks for buyers. That is why we advise you to find your agent and leave the idea about direct house buying. An agent will help you to find your dream house taking into account the client’s wishes; negotiate with the seller about needed repair; done all paperwork. What is most important is that your agent is always on your side as it is your representative. Be very specific with your realtor. Tell precisely how your home has to look alike. Plus, you will have many questions, especially if it is your first investment. An agent is the one who will take you through the whole process.
Choose the right real estate agent. Negotiate about a personal meeting to know more about an agent’s experience, years of work, and specialization. Meanwhile, we also advise you to study the process by yourself. It will enable you to react more quickly and confident as it is essential for the property market.
2. Show what you like
According to the National Association of Realtors` survey, most buyers find the houses they like on the Internet. Use it to find the options you like most and show them your agent. In such a case, an agent will know what kind of home you want to purchase. Also use social media to find agents in your area, which can offer you off-market properties.
A down payment and closing costs can be real obstacles a buyer may face. So, it is vital to save as much cash as possible to ensure you and your family are financially safe.
In case if a buyer cannot afford a 20 % down payment, then he may consider low or zero down payment options. Such programs like Adjustable-Rate Mortgages, FHA Loans, VA Loans seem to be a great chance to buy a house. However, they have hidden risks and disadvantages. Before becoming a part of one of these programs, learn all their pros and cons with your agent. It is important to know will you benefit from participating in any of the programs or not.
You should also be aware of hidden costs like property taxes, insurance, and Homeowners Association fees. Except for the first down payment, remember that a buyer needs to cover closing costs, broker’s commission.
Consult with your agent to understand how much house you can afford. An agent will help to make a correct calculation, taking into account a buyer’s income, a down payment, taxes, insurance, and other hidden expenses.
4. Location is everything
The neighborhood is an essential criterion for homebuyers. Ask yourself what is more important to you – schools, parks, shops, or restaurants. Of course, the property itself is also vital. However, if you want to change something in a house, you can do it. But you will never change its location.
5. Home inspection
A home inspection is an absolute must. So do not even think to avoid it. As it was said at the very beginning, a home purchase might be the most serious investment in your life. An inspection gives a buyer an understanding of house condition. As a buyer, you cannot see all the nuances. They can be seen by a professional inspector only. After the inspection, you will know what you are buying.
6. Ask for a detached view
Show the home you love the most to your family and friends. The point is that you may become too emotionally close to the property. That is why you can miss something important, and your family may notice it.
7. Conduct HOA Study
A prospective buyer needs also search for HOA. There are some tips to choose the right one. Start with attending the board meeting to see how the voting goes. Then check the annual budget, clarify about special assessments, check HOA’s budget to be sure it is transparent, read rules and standards of the organization.
Finally, if you do not understand any point of a contract when the time to sign a contract comes, ask your broker to explain. Ask as much as possible to understand everything. You will be the one responsible as it is you who sign a contract.