What To Consider Before Buying Your First House
Probably the biggest investment you will make in your life is purchasing a home for the first time. Everyone dreams of the perfect home where they can relax after a long day and be happy with their loved ones. However, the process of purchasing a home can be overwhelming and exciting at the same time. This is the main reason why you should be wary of many things during the process that can negatively impact your finances and your future.
With the help of a professional real estate agent, you can make this process of buying a home much simpler, as they will guide you and work in your best interests.
Below are some important questions to ask before you close the deal on your first house.
Should I Work With A Realtor?
If you are a first-time buyer, it’s a given that you will need some professional advice. When choosing a realtor, you should always have experience in mind. A professional realtor can help you land the best deal and guarantee satisfaction.
Without the help of a professional, you can potentially miss out on your dream house which can be quite disappointing.
What Are the Closing Costs?
Before you begin flipping through online catalogs looking for houses, it is important to establish your budget and consider additional costs such as property taxes and closing costs. You should know that closing costs could amount to anywhere between 1.5% and 4% of the purchase price. Many homebuyers don't realize the hidden costs associated with buying a house, especially when the acquisition process is nearing its end.
Closing costs can sometimes be pricy and they include inspection fees, property appraisal fees, lawyer fees, and moving costs. The closing costs will vary depending on where you live and whether you are a first-time buyer. To get a proper estimate, you can always use third-party online services or consult a professional realtor.
What Is Included in the Sale and Were There Renovations or Upgrades?
When buying a house, fixtures such as cabinets, blinds, and faucets are usually included. However, there might be items that you think are included, but they are not. Sometimes, the seller will list items that don’t even exist and this can lead to a lot of misunderstanding. Ask the seller what items are included in the sale and which items they will want to keep after the sale has been finalized so that no problems occur.
In addition to that, property records may not always match. A house might advertise as having four bedrooms but one room may not be compliant with local building codes. You should find out about any major renovations and upgrades that the seller has made. Understanding the history of the improvements in the house can help you understand the price.
How Long Was The House On The Market?
A seller may be more motivated to sell if a property has been listed for a longer period of time. You might be able to reduce the price and negotiate better terms and conditions, as well as credits for replacing obsolete items. A buyer might feel that there is something wrong with a house if it has been on the market for too long or the listing contains multiple price reductions. This might allow you to negotiate a sale.
Understanding the market is important as it will allow you to determine whether the asking price of the seller is too high or low. A real estate agent can provide comparable data on similar properties that have sold within the last six months. This data can be used as a basis for comparison and help you negotiate a better deal. You can also ask about the neighborhood and get key information such as crime rates, school ratings, and traffic patterns.
Is there anything wrong with the property?
Sellers are required to disclose any property defects as soon as the listing goes up. However, if they fail to do so, it could cause serious problems later on. It is crucial that you get a professional inspector's report as soon as you start negotiations.
This report will provide a detailed description of the condition of the property and can be used to help negotiate future concessions, such as repairs or seller-paid credit. If the house is in unacceptable condition, you will be allowed to cancel the deal without penalty and your deposit can be returned.
Final thoughts
It is important to understand and learn the process before purchasing a property. Know who you are hiring and answer the essential questions. This could make or break a deal. There are very few things that can go wrong when you buy a house, however, it’s better to be safe rather than sorry.
