First time homebuyers, we know the feeling, we have dealt with many :). It’s exciting and the possibilities to becoming a home owner sounds a dream come true, but there are the 6 secrets that you need to know before you begin the hunt for the right place you can call Home.
- You cannot time the market : Waiting for the best time to buy a home is actually an impossible task. Even the best Realtor or mortgage brokers cannot tell you that. The prices goes up and down based on the market conditions and so does the interest to buy/sell. There is no perfect time to buy/sell, the right time is just when you are ready. Gambling with a six figure investment is not a risk you should be taking lightly – instead get to know the market, the historic prices, the appreciation and become more comfortable with your finances and if it is the right time for you to buy real estate.
- Numbers can mean a lot of things : Realtors usually go with the pre-approved amounts and can sometimes push you to look a bit beyond your budget to get better housing. This can look scary at times. You don’t have to do this but you might be missing out on properties that you could negotiate down to your price point.
- There is no shame in viewing a home you like multiple times : You can view homes multiple times (the one that you like), visit the home multiple times during the day and night and get a feel of the neighbourhood – how it looks during the daytime, how it looks at night. The dynamics of the neighbourhood / community in the morning and night.
- Expect unexpected expenses : Anticipate unexpected expenses, purchasing a home cost a bit more than we think. It could be related to closing cost ( legal fees, appraisals, prepaid property taxes by the previous owners or something else – septic tanks, liens, lawsuits etc.) Keep a bit of buffer for you to offset those unexpected costs.
- Make use of the Internet : The Internet is your best friend, use it to get statistics on the neigbourhood, schooling, appraisals and much more. Double / triple check information you can find on your prospective home. House buying is a big investment and long term as well. Know all you can about the property.
The best tip of all, remember you are not in a relation with your property. Don’t let the emotions get the best of you and be the driving force. It’s a financial decision and your health to take on such a huge obligation comes first. Follow your gut and be happy both ways – financially and mentally.