Purchasing a home can be one of the most stressful processes there can be for a young individual or couple. The fact that a home can account for a majority of a person’s net worth makes this decision one of the most important during a young buyer’s lifetime. The most important thing that can be done is to find an agent via personal referral or do research on who the best agents in the area are. Creating a list of desires as well as things that are deal breakers as far as purchasing a home is important. Most buyers understand that they will not get to check all of the boxes on their list so prioritizing what is wanted versus what is needed is paramount. The following are tips to make your first home buying experience as painless as possible.
Set A Realistic Budget Instead Of The Max A Lender Will Give You
One trap that many people fall into is that of trying to spend the maximum amount that you have been approved for. Lenders have a formula that incorporates current debts, income, and potential monthly payments when considering a buyer for a loan. Often times the maximum amount that can be lent is utilized by a buyer even though it can impact their lifestyle negatively in the future. Set an amount that YOU are willing to spend then take a look at homes within this budget. Taking a look at the homes that the loan could buy can make more affordable options look bleak. The lender is not going to help you maintain a social life without spending a penny so look out for yourself as well as your financial future.
Find A Great and Experienced Inspector
One thing that needs to be stressed is that of looking into an inspector that is high quality and experienced. Do not use the inspector that your realtor or lender pressures you to hire. These inspectors might overlook certain details in the home that you will not find out until a few years later were problems during the inspection phase. The home that you are buying should not come with any negative surprises as you are purchasing the home to be in the condition that it is presented. Hiding problems like mold or structural problems can lead to thousands of dollars in repairs later down the line. The best inspectors write out detailed reports and photograph issues so there is concrete evidence.
Check With Pros To See How Much Certain Repairs Cost
There is going to be a time where the inspector provides his report and there could be issues with the home. Repairs might have to be done to the home or skipping the repairs can give the buyer a negotiating advantage. The first thing that you need to do is get some quotes on the different repairs that need to be done. Total these repairs up then present them to the seller to see if they will drop the price, cover certain closing expenses, or handle the repairs on their own. For aesthetic repairs it can be worth negotiating closing costs so the money will be available right after closing to have the repairs done. Things like the roof should be demanded as this can be a huge expense as well as the air conditioning system. One of these giving out during the first few months of living in a home can spell financial disaster for the buyer. Find a professional like those at https://www.fixitrightplumbing.com.au/plumber-cranbourne/ to let you know about potential plumbing problems as well. Problems with the plumbing can lead to larger issues if not appropriately dealt with.
Don’t Let Your Agent Pressure You To Accept A Deal
As the deal gets closer it is important to hold your ground even when it comes to your agent. Real estate agents want to close deals as fast as possible as this is how they make their money. The agent does not care if you pay an extra $5,000 for a home but rather that the deal was close. The realtor splits anywhere from 3 to 6 percent commission so this could just be a few hundred dollars versus thousands if they close another deal. Under no circumstances agree to something that you are not comfortable with. If there is a certain repair you do not want to deal with after closing then ask for it to be repaired before closing occurs. The home buying process should be enjoyable rather than feel like you are always on the defensive for wanting specific things.
Getting paperwork together and signed in a timely fashion should be the extent of your worries while looking for a home. Know what you can and cannot ask for from the seller as well as your agent. An educated buyer is a buyer that can protect themselves so they get the best deal possible!