Buying your first house? Be on your toes
Doing anything for the first time can be a challenge, more so when you are dealing with the real estate market. But if you are aware of valuable information about what you are dealing with, chances are you will find an amazing house. As a buyer, you need to be constantly on your toes and stay updated about the latest happenings, especially with the kind of volatility in todayís markets.
Your first home purchase warrants a comprehensive first-time home buyersí guide to help you through the purchasing process. Letís take a look at this checklist for buying a home.
Realise your needs
As a first-time home buyer, the first thing you need to do is to figure out your requirements. What kind of property are you looking to buy? Will your current family fit into the new space? What sort of financing would you prefer? These are just some of questions you should ask yourself before you start looking for a property.
Identify the locality
Once you know the exact property type you are looking for, you can zero-in on the locality. Since buying a house is a long-term affair, you would want a locality where your family can thrive in while experiencing comfortable living. You can look for properties that cater to your familyís specific needs, which include the presence of schools, hospitals and shopping avenues in the neighbourhood. Also, consider your potential homeís proximity to your workplace.
Lookout for reputed buyers
Buying a home from a builder directly without involving a realtor is a smart way of saving money on commissions. But remember that, unless you have concrete knowledge of the real estate market, itís not advisable to venture out on your own, especially when you are a newbie buyer.
Define your budget
While property hunting, limit your search to properties that fit your budget. Setting a budget prior to the purchasing process enables you to save unnecessary expenses, since you might be tempted to buy a property that is beyond your financial capabilities.
Finance your purchase smartly
This is one of the most essential factors while planning to buy a house? The way you finance your house will have a major bearing on your financing spending for at least the next decade. The intelligent thing to do is to analyse the options and choose the perfect financial service provider.
Consult an expert
For inexperienced home buyers, getting help from real estate experts shouldnít be a tough choice. Buying a home without a realtor is not recommended to first-time buyers since they can miss out on a great property or price because of their ignorance. Also, a realtor can provide you with the house of your specifications without you having to move a muscle.
Inspect the property
If you like a particular house, donít directly buy it. Preparing a new home inspection checklist is an essential step in the home purchase process. Take a careful look at every nook and corner of the house to identify any damage that might trouble you in future. Also, check pipe fittings and fixtures to ensure that everything is in a proper shape.
Negotiate with the seller. While being too forceful is not advisable since that can drive the seller away, you should stand up for your right to fair prices. State points as to why you think the property should be priced at a particular level and ensure that you bring the rates down to a desirable level. Unless itís a house you really want, there is no point in paying excessive money.
Keep your documents ready
Keep all necessary documents ready, both for purchasing the house and acquiring the loan. This ensures that you donít waste time on procuring the documents when you need them the most. Make sure that all legal formalities involved with the purchase are taken care of and that you have a valid contractual agreement with you. Once you have selected the property, you can look for sources to finance your purchase.
The author is senior vice-president, SME Finance, Bajaj Finance. The views expressed in this article are his own