Just like any other big step in your life, buying a house of your own is not a matter of a few minutes or even hours. Potential issues that may arise within this process might in the best case scenario slow it down and make this venture go way beyond your budget expectations. In the worst-case scenario, however, you could end up with something that would be impossible to sell later and something you didn’t quite want or bargain for in the first place.
Cases like that need a complex approach that requires not only for you to ask what you should do before buying a house but also what you should know before buying a house. Like many issues that have a potentially life-changing effect on our lives, buying a house requires a multi-step approach that requires a set of both actions and knowledge. In a word, the more prepared you are to step into this deal, the better the outcome is going to be.
What to know before buying a house
Knowledge is one of your greatest assets in many areas of your life. The time before you buy a house is crucial for you to gain this knowledge that will eventually guide you to the right decision.
Timing is key. 2020 has been a challenging and overall weird year. But with mortgage rates at their all-time-low at the moment, this year might finally be good for something!
Study the buying process. Buying a home is not limited to just signing the paper and paying the money. It starts with a preapproval letter and goes on through several stages that are each filled with nervous anticipation. Be prepared to dive into a lot of paperwork.
Things to do before you buy a house
We are moving on to actions but not signing anything yet. It’s important to know that missing one or few steps of the way is likely to affect the end result to the extent you might find it hard to predict. Treat this article as a before-buying-a-house checklist that will guide you through each step to make you closer to your dream home.
Do some market research. It is always important to think about the economic circumstances before buying a house. Sometimes a different location or a different time of purchase may significantly affect the final price. Additionally, looking at the local market is vitally important as in certain climates buying a home in a certain area may not be viable at all.
Evaluate your job security. Owning a home requires regular spendings, and it doesn’t only have to do with your mortgage payments. Keep in mind that no one is immune to accidents that might happen due to circumstances that are out of your control. Make sure that you have a stable job and a financial cushion as well.
Schedule several viewings. It is not bad etiquette to have as close of a look at something you are about to buy as possible. You never know if there might be something you missed the first time or the first few times. After all, it is way worse to find out about some unpleasant surprise a week after you move in. The recommended number of viewings before making an offer is between 2 and 4.
Questions to ask before the purchase
Negotiations are an important part of the house buying process. Regardless of whether you are good at them or not, there are certain points that you should remember to bring up before sealing the deal. Your opponent will see that you are quite knowledgeable about the issue, even if you lack certain debating skills.
Look out for expensive defects. The list of things to look for before buying a house also includes physical characteristics of the property, such as damp areas, pipes, and roof covers that need fixing, old paint, insect infestations, and etc.
See if the house fully checks your personal preferences boxes as well. In contrary to the previous point, the best way to approach the issue is to make up your own list of the things and features your ideal house should have. Maybe you would like your bedroom windows to face East and your living room ones – West or vice versa. Need a lot of extra storage space, why compromise?
Evaluate the value of a potential future sale. Viewing your property as an investment is an approach that will not only save you money but could potentially bring you profit in the coming years. The kay factors to look at are the property’s location, age, as well as certain selling points that make properties on the market more valuable, such as the size of the backyard and a pool.
Negotiating the cost. Remember that the closing costs could be either paid by the seller or the buyer. With that in mind, you can additionally try to lower the price. Experts believe that the realistic discount you can get is somewhere between 2% and 5% of the purchase price.