Buying a house is definitely one of the biggest decisions that a person makes in his lifetime. But if the right precautions are not taken, a lot can go wrong. Anyone from the buyer to the seller or the real estate agent could do something to inadvertently sabotage the purchase. If you are a newbie to the real estate market, here are some blunders that you should do to keep problems at bay.
Buying a house is definitely one of the biggest decisions that a person makes in his lifetime. But if the right precautions are not taken, a lot can go wrong. Anyone- the buyer, the seller or the real estate agent could do something to inadvertently sabotage the purchase. If you are a newbie to the real estate market, here are some blunders that you should do to keep problems at bay.
- Checking with your savings and credit score: The first and foremost thing to do before considering buying a house is to check with the finances. Make sure you get a copy of your bank statements. The cleaner and higher your credit reports are, the more likely you are to be preapproved for a loan at a lower interest rate.
- Sticking to the needs: Every human being come with different set of needs. If you are single, you do not need a 4BHK. Similarly, if you are not keen on maintaining a garden or a pool, you do not need a house with these facilities. Thus, it is advisable to list out the needs before buying a house.
- Do not skip the home inspection: Many real estate agents say that most buyers do not inspect the property before buying, especially when they are in a hurry to close the deal. Some other get the inspection done by having a family member. This is a very big mistake and the reason is pretty obvious.
- Checking out the neighborhood: While buying a home, you should also know well about the neighborhood. Not knowing the area and feeling unsure about the neighborhood can be red flags.
- Check with the future cost of living: Keeping a track of the current budget is cool, but have you listed out your future cost of living? Expenses like maintaining the pool and the garden, cost of traveling (if any), costs involved in the upkeep of the house etc. should be considered in detail, as they do lead up to significant expenses later on.
- Choose the right loan: To become the best negotiator for a project, it is extremely important to have a pre-approved loan. Figuring out the budget helps the buyer foresee how much he/she can apply for a loan. A buyer should realize that he/she can’t simply rely on a loan, as there’s a big difference between what the banks indicate they can lend you and what they actually do.
- Do not make an offer out of the blue: While making an offer, the buyer should keep in mind that he is not going way off the market price. In today's homebuying market, where demand is high and supply isn't, sellers have little patience for low offers.
- Don’t go solo- As a buyer, going solo to buy a house can be the biggest mistake you can ever make. Sure, you’ve done your research well, but this is likely to be your largest purchase ever. And those emotions will cloud some of your decisions. Perspective is extremely important, and hence it is critical to engage a professional to represent your interests.
If you're looking to buy a house, do what you can to avoid making these classic homebuying blunders. For everything else, RealtyMonk is always ready to help you out. Click here to know more!