6 Home Buying Tips for a Smooth Purchase
Buying a home is the most important financial decision of life. It costs a lot of money at the time of purchase but provides many rewards afterwards. Home buying process is very exciting but many first time homebuyers find it stressful as they have no experience. You should learn about buying a home as there are many things to consider. Here are the top 6 home buying tips for a smooth purchase.
Consider your requirements
The first thing to consider for buying a home is your requirements. Different people have different circumstances and need different types of homes. Some people need larger homes while others require smaller. Also consider the number of rooms you want in your home. These things have huge impact on the home buying cost as large size homes are expensive whereas small size homes are affordable.
Plan your budget
Budget assessment is very important to buy a home. Some people can buy home with cash payments whereas other can only buy with mortgages. If you are buying home with a mortgage, you should not spend more than 35% of your monthly income on loan payment. Otherwise you have to compromise on other monthly expenses. Also consider the extra charges you will pay in form of renovation costs.
Start looking for a home
Once you know your requirements and budget, you can start searching for a suitable home. You can search a home online or by visiting the local real estate agents. Always vet the realtors to make sure that they can find a suitable home as per your requirements. If you have found your preferred home online, you can contact the real estate agent or owner to get all information including the selling price.
Personally visit homes
Either you have found homes by online search or estate agents have found for you, your next move is to personally visit each property. Home inspection has two major benefits. Firstly this will give you a good idea about the condition, location, orientation and living environment. Secondly home inspection will help you in negotiating the right price. During home inspection you should also meet the sellers.
After selecting the best home as per your requirements, you should start the price negotiation process. First ask about the selling price and then make your offer. As a rule of thumb there is always 10-15% price negotiation margin as seller will ask the high price. Your offer should be realistic otherwise it will be turned down and you have to find some other home. Search the market to make sure that you are offering the right price.
Transfer home on your name
After price has been agreed between you and the seller, it’s the time to discuss the mode of payment and transfer of home on your name which is known as title transfer. Just hire a good real estate lawyer to complete the paperwork. Hiring a lawyer has three benefits. Firstly lawyer will check the documents to avoid the fraud. Secondly lawyer will calculate the taxes you need to pay as buyer. Thirdly lawyer will help in transferring the home on your name.