|Giving You Knowledge & Power To Buy And Sell Real Estate.
The golden rule when buying a home is to do your research, get a property appraisal, get a feel
for the home and area it is in, before you sign any contract.
Once you’ve bought the property, it’s too late to change your mind.
Let’s face it, you don’t want to be kept up all night by noisy neighbors who thrive on all-night
parties . . . unless of course it’s at your place! Or . . . discovering that your section is prone to
flooding in the rainy season. It’s better to check everything, either before making the offer to buy,
or making the offer subject to you working through a due diligence process.
Every property deal is different, so this list is by no means complete. But, it is a good starting point
and will get you thinking about some of the important issues that need to be considered before
buying a property.
Home Buying Tip # 1
Always seek professional advice before signing any contract. You need to be sure that you can
finance the purchase, that the property is a good buy, and that the clauses in the contract meet
your individual needs.
Home Buying Tip # 2
If you need to take out a mortgage to by the property, then get pre-qualified for a loan before you
start looking for a property to buy.
A mortgage lender will want the answers to questions like:
- Do you have a steady reliable source of income (usually a job)? Have you been employed
on a regular basis for the last 2-3 years?
- Do you have a good credit history of paying your bills?
- Do you have any outstanding long-term debts, such as car payments?
- Do you have money saved for a down payment?
- Do you have the ability to pay a mortgage every month, plus additional costs?
Remember too, when interest rates are low, you may be best to opt for a fixed rate mortgage
where the interest rate is established at its origination and continues unchanged through the life
of the loan.
Home Buying Tip # 3
Decide what features you want in a home before you start looking. Decide what features are high
priority and what features you might be prepared to compromise on. Always look for a home
which comes closest to what you want. Don’t have such a detailed list of requirements that you
literally shut out any chance of finding a suitable home.
Home Buying Tip # 4
Get a feel for what properties are worth by checking recent sales statistics. Also search through
MLS listings, real estate newspaper ads, real estate internet sites, drive around your preferred
area and look for "FOR SALE" and "OPEN HOUSE" signs.
Home Buying Tip # 5
Visit open houses and ask lots of questions. Doing this will give you a good feel for how
properties compare on price, features, quality etc. When I bought my last home I visited over 60
open houses before I put in an offer.
Home Buying Tip # 6
When visiting an open house don't just look at the house in isolation. Are other homes in the area
presentable and are they of the standard which you want to live with? Do neighbors take pride in
their properties? What are the neighbors like? You might even consider introducing yourself to
neighbors and ask them about the neighborhood.
Home Buying Tip # 7
If the property is on a busy or noisy street it may affect the property value. Is it a quiet street or is
there a lot of traffic?
Home Buying Tip # 8
Look for other things that might affect the value of the property. Are there high tension wires or
cell phone sites nearby? Is the property affected by high trees that block the light or winter sun?
Are there noisy or smelly factories nearby?
Home Buying Tip # 9
Consider access to community facilities, shopping malls, public transport, schools etc. Although
the quality of a school district might not matter to you now, it might in the future, or it might matter
to another buyer.
Home Buying Tip # 10
Is the home you are looking at buying unusual and does it appeal to a limited market? A lot of
homeowners like put their own personality into a house, which is to be commended. However, if
the style is too "uniquely individual" it may appeal to only a limited number of potential buyers.
This will usually minimize, rather than maximize, the resale value of the property.
Home Buying Tip # 11
Look to see if there is anything unusal about the land that the house is built on. Is the section
prone to flooding? Is the driveway shared with another property. Are the boundaries and fences
where they should be? This is where professional advice is needed to ensure you don't buy into
Home Buying Tip # 12
Is the home structurally sound? Unless you have lots of money to risk, a thorough home
inspection is wise investment. A Home Inspector will focus especially on the structure,
construction, and mechanical systems of the house. He or she will make you aware of any repairs
that may be needed.
The most expensive problems are not alway obvious to the untrained eye. Call in the experts!
Home Buying Article Continues Here
|33 Home Buying Tips To Save You From
Costly Mistakes In Buying A Home
By Noel Peebles