|
By Andrew Loh
There are few purchases in life that carry the financial and
psychological weight of buying a home. Whether you are buying
your first home, moving up to your dream home, or downsizing
your home and your life after the kids have gone, it is
important to understand the ground rules for success in the
world of buying a home.
Making the wrong decision in buying a home can have
devastating
and long lasting effects, while making a wise decision in home
buying can greatly enhance the overall value of the
investment.
It is necessary to learn all you can about the world of home
buying and mortgages before setting out to purchase the home
of
your dreams.
While there are plenty of web sites designed to help first
time
homeowners learn all they can, most financial experts say that
there is no substitute for the good old one-on-one learning.
Fortunately, most mortgage lenders, home inspectors and real
estate agents will be able to provide this kind of one-on-one
learning.
When buying a home it is often best to use a systematic
approach as this is often the best way to be sure that all
decisions are based on information and reason, not on impulse
or emotion. Buying a home can be an emotional process,
nevertheless it is imperative to keep your emotions under
control and not let them cloud your judgment.
There are five basic ground rules when it comes to buying a
home and shopping smart, and they are:
#1 – Get your financing before you get your home
There are few things in life as disappointing as losing out on
the home of your dreams due to not being able to secure
funding. While the desire to get out there are search for that
great home is understandable, it is vital to line up the
financing you will need before you start shopping for a home.
Getting the financing ahead of time has a number of important
advantages, including knowing how much you can buy and gaining
more respect from the listing agents. By knowing how much home
you can afford before you shop you will avoid wasting your
time
looking at unaffordable properties, and the listing agent will
be more than willing to show you the homes in your price
range.
It is also important to take a good look at the various types
of mortgage on the market before getting started in the home
buying process. These days, mortgages come in far more choices
than the typical 15 or 30 year. For that reason, potential
home
buyers need to understand how each type of mortgage works, and
to gauge which mortgage is the best choice for their needs.
#2 – Look at the community, not just the home
It is a good idea to look at the entire community, instead of
focusing on a single home. This can be a particularly
important
thing to consider for those moving to a new metropolitan area,
as these buyers will be unfamiliar with the local climate and
lifestyle. It is crucial to determine the areas of town that
are most desirable, and to consider things like distance from
work and local shopping opportunities.
We have all heard that location is the key consideration when
it comes to real estate, and that is certainly the case.
Buying
a house in the wrong area can be a big mistake, and it is
important to choose the location as well as the home.
Potential
buyers can learn a great deal about the nature of the various
neighborhoods simply by driving around town, as well as by
talking to other residents.
#3 – Be fair with your first offer
Trying to lowball a seller on the first offer can backfire, as
can paying too much. It is important to carefully evaluate the
local market, and to compare the asking price of the home with
what similar houses in the neighborhood have sold for.
Comparing the sales of comparable homes, what are known as
"comps" in the industry, is one of the best ways to determine
what is fair, and to make sure that you neither overpay or
underbid on the property.
#4 – Always get a home inspection
Always investigate the home for any possible defects before
making an offer. Compared to the cost of the average home, the
price of a quality home inspection is virtually negligible.
Hence, get a good home inspection done before you buy.
To find the best home inspector, it is a good idea to seek out
word of mouth referrals as many of the best home inspectors
rely on word of mouth advertising.
#5 – Do not alienate the sellers of the home
Many real estate deals have fallen apart due to the personal
animosity of the buyer and the seller. It is important to
avoid
alienating the seller of the home during the process, and to
avoid nitpicking every little detail during the sale.
Keeping the good will of the seller will help the transaction
go smoothly, and it will provide the best environment for
seller and buyer alike.
About The Author: Andrew owns a website that provides tips on
buying a new house
www.buy-and-sell-house-fast.com/home-buying-guide.shtml
and more. You can visit his website at:
www.buy-and-sell-house-fast.com/
|