If you're a first-time buyer setting out in the real estate market, there are a few pitfalls you'll want to side-step. Buying a home, especially for first-time buyers can look daunting. The process is long, but the outcome can be advantageous. Making a substantial purchase with little experience is intimidating, but a little preparation will make a considerable difference. We've outlined some areas buyers should consider while they are looking for their first home.
Get in the mindset of buying a home.
Many real estate agents will agree that the hardest part about shopping for a home is getting your head around the large sum of money you are about to spend. The best thing you can do is start visiting open houses the moment you decide you are interested in making a purchase. The exercise will involve you in the process, help you identify what is important to you, and let you practice evaluating property. One critical component is leaving the emotional aspect out of the decision making process. Going before you have secured your finances teaches you to move forward as the housing market changes. Nashville's real estate climate is one of the hottest in the country at the moment. This means there will be a lot of homes you will see that might slip through your fingers. But you don't want to get trigger happy. Wait for the house that is perfect in size, location, and price.
Prepare your finances before you start searching.
As we just mentioned, Nashville's housing is in high demand. More people are looking for houses than there are homes available. If you want to have a fighting chance at securing the home of your dreams, don't hire a real estate agent before you have your finances secured. First, you need to know what you can afford so you don't waste time looking at homes in the wrong bracket. Secondly, it's possible that you might end up bidding for a home. If you're pre-approved, then you can adequately prepare, and possibly outbid someone who hasn’t taken steps to secure a mortgage from a lender. Just remember, lenders make money off you borrowing, so don't feel any obligation to take out the pre-approved amount. Try to compensate at least 20% from your savings.
Hire a home inspector.
A necessary process when purchasing a house is a home inspection. There are a few reasons why this is important, but the primary goal is to help you make an informed decision about the home and its current condition. The purpose of a home inspection is identify leaks in the roof, foundation issues, mold in the walls, and other damages that could become problematic. In an effort to close quickly and save some money, many buyers will bring in someone who isn't qualified or worse, skip this step altogether. This poses a considerable risk and while you might save a couple of hundred dollars up front, you could potentially owe thousands of dollars to have the problems fixed.
Get advice from someone who has your best interest in mind.
Something real estate agents see often is buyers blindly listening to advice from friends or family. Searching for the right home can be arduous. You will see many many homes before you start narrowing down the choices to serious contenders. Especially if you are a first-time buyer, you will most likely reach out to someone close to you that has already been through the process. Bringing them along, they will highlight areas of interest that they think are relevant to you. The challenge this presents is missing out on an opportunity because someone is basing your potential purchase against their current situation or what they expect for you. For an unbiased opinion on every aspect of the deal, you should consider hiring a trusted real estate attorney. This service will afford you impartial judgments on the property, as well as, give recommendations to make the deal favorable.
Our lawyers have been helping buyers find the perfect home for over 20 years. If you're thinking about buying a home, contact Rochford Lawyers for a free, no-risk consultation.