When searching for a home to purchase, it's important to keep in mind the practical considerations of budget and financial responsibilities. It can be easy to get caught up in the excitement of the search and lose sight of these important factors. Overspending on a house can have serious consequences, such as difficulty making mortgage payments or covering household expenses. To avoid this, here are some helpful tips to keep in mind.
Know What You Want Before You Start Looking
Create a very specific list of requirements for your new house. Figure out which items are essentials and which are not. Be ready to accept the fact that a house in your budget may not have all of the things that you want. You may have to choose between your needs and some of your wants.
Look for a Mortgage Before Shopping for a Home
It's a good idea to get a loan pre-approval before shopping for a home. Not only will you know ahead of time how much you can afford to pay, pre-approval tells the seller that you are serious.
Choose the Right Real Estate Agent
A real estate agent will help you find the home that meets your needs as well as a lender that will help you to buy it. They can also help with the many complex and tedious aspects of the transaction. Note that most sellers will have their own real estate professionals; having one on your side will help to make sure that you get a good deal.
Explain What You Want to Your Agent
Your real estate agent should be aware of the needs and wants on your list. If there isn’t good communication between you and your agent, you will be looking at the wrong houses and may not get to see the ones that meet your needs. Good agents are good listeners and will take your finances and wants into account when showing you homes.
Consider the Location
The viability of the home as an investment is an important factor in how much you should spend on it. The ease of reselling your home and the price it gets are largely dependent on its neighbourhood. When looking at prospective homes, you should consider the qualities that might make them attractive to a future buyer. Selling points like nice homes in the neighbourhood or proximity to schools may make a home attractive for you and for the next owner.
Look for Signs of Serious Problems
Even if a home is otherwise perfect, signs of a termite infestation or water damage can be indications that you need to walk away. You should pay attention to signs of problems that can lead to large expenses down the line. At the same time, you should avoid making too much of minor cosmetic issues. Excessive critiquing can create a hostile atmosphere and make the seller averse to negotiating with you. Which leads us to...
Pay for a Home Inspection
Yes, it will cost you money but trust us, it's money well spent. It could keep you from losing thousands more. Home inspectors have years of experience at evaluating homes and will be able to tell you if your home is a worthwhile investment. Not only will a written inspection report provide you with peace of mind, it can be a valuable negotiation tool.
It is important that you approach the purchase with your head, not your emotions. It’s all too easy to make an impulsive decision that you will regret for decades to come. Finding experienced professionals and focusing on your needs rather than your wants can help you avoid buying too much house.
Photo credit: stock.adobe.comPosted by Terry Paranych on