In 2019, Americans bought a total of 5.34 million homes nationwide. Although COVID-19 hit the housing market hard, experts hope that this year will be a return to normalcy.
Are you looking to join the ranks of homebuyers and owners nationwide? If you are, there are some things you will want to do that will make the process easier. Getting things in order beforehand is especially important if you’re a first-time homebuyer.
So, what do you need to know?
Keep reading to learn about some of the dos and don’ts you’ll want to remember as a homebuyer.
Are You a First-Time Homebuyer? Dos And Don’ts to Remember!
Buying a home isn’t just another decision in your life. It is a massive emotional and financial decision in one’s life. This is why we often try to make it perfect in every possible way. There are thousands of factors involved in buying the right home.
On top of that, it involved a lot of money. This means you must ensure there is no error in the decision-making process. This especially happens when you are a first-time homebuyer.
Here are the top dos and don’ts you must consider when buying your first house.
1. Track Your Expenditures:
There’s no room for estimating or guessing when you buy a house. You need to have a clear understanding of your current budget, and especially of how much money you spend each month.
Understanding your spending habits is essential. It can give you insight into which type of mortgage plan is right for you. Make sure to consider all the money you spend each month.
Aside from figuring out how much money you spend, you can make a point to determine where your money goes. In doing so, you’ll be able to identify areas that you can cut back on.
2. Check Your Savings:
Aside from looking at your spending habits, you’ll also want to consider how much savings you have. Remember that there will be additional costs to consider when buying a house.
The down payment, closing costs, home inspection, and other expenses can all catch you off guard if you aren’t prepared. Ensure you have enough money in the bank for all of this.
You’ll also want enough savings to cover the first few months of living expenses. This will give you and your family a safety net in case something unexpected arises.
3. Be Realistic About What You Can Afford:
It’s tempting to go for the most significant and best option, but it’s no sense getting something that you ultimately will struggle to afford. Be realistic with yourself, and only buy a house if you can finance it without a problem.
Most financial experts recommend paying 28% of your monthly income on house payments. Of course, if you can go lower than that, that’s ideal.
Your realtor can help you determine a realistic price point that’s in your budget. In some cases, they might recommend living in a multifamily unit. Discover more about multifamily properties here.
4. Work With A Quality Realtor:
A quality realtor is the key to finding your dream home and selling your current one, if necessary.
As is the case when hiring any service, do your research beforehand. Read reviews and get referrals. You want to end up working with someone that you trust.
You’ll also want to make sure that the two of you communicate well with one another. You need to know everything in the buying process, so whether they call, text, or email you, decide on a system and stick to it.
5. Don’t Buy The First Home You See:
It’s tempting to sign off on the first home you see, especially if you live in a region with a competitive housing market. However, while you might think you love it, don’t buy the first home you see.
A good realtor will show you many suitable homes that fit your wants and needs. They’ll make a point to explain the pros and cons of the different ones you look at and offer their advice as to which ones they feel are best.
Committing too early on can cause you to waste money. The following home might have offered you all the features you wanted for a cheaper price.
6. Do Negotiate:
Remember that the price the seller has listed is what they think is fair. A realtor might have helped them decide on that number, but at the end of the day, you’re welcome to negotiate or offer them something lower.
If you feel that the price is too high, your realtor can compare why it should be lower. They can look at other similar houses in the area to make the argument that the price is too high.
While you should always try and negotiate down, remember that sometimes, the opposite can happen. If many interested buyers are vying for the same house, you might have to pay more to get it.
7. Opt For Home Inspection:
You might think the home you’re interested in looks pristine and flawless, but you never know what’s under the surface. Because of that, performing a home inspection is a must.
A home inspector will come to the house and look at everything from the foundation to the ceiling—and everything else in between. If they dig anything up, you can ask the seller to fix the problem or offer a cheaper price.
In extreme cases, you can rescind your offer altogether.
8. Be An Informed Homebuyer:
Buying a home is always going to be a stressful process, which is why it’s so important to go into it with a game plan. If you’re about to become a first-time homebuyer, remember these do’s and don’ts that will help you through the buying process.
Did you find these tips for buying a house to be helpful? If you did, check out some of our other posts for more real estate guides and tips.
Wrapping It Up!
In conclusion, purchasing your first house might seem like a daunting task to you. But if you follow all the pointers above, it will be easy to have an easy home-buying process.
Remember, your home-buying experience shouldn’t be daunting; you must enjoy the entire process. So, take your time, research, and try to collaborate with the professionals as much as possible.
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