Buying a property is a major financial commitment that you’ll have to stick to for years and years. Other than just a financial decision, it’s also a choice that will affect you and your family in every way imaginable. For these several reasons and many more, it’s essential that you learn a thing or two before buying a new property. With that in mind and without further ado, here are the top seven things you should know in advance.
1. How much is the total cost?
Other than just the property’s price, there are all sorts of closing fees, additional taxes, and paperwork-related fees. When all of this is put together, it may offset your initial estimate by quite a margin. Now, keep in mind that this is one of the largest financial commitments of your life, so you have to be extra careful. Also, other than just fixating on the total cost, you might want to try and make an estimate of your monthly mortgage payment. Here, you also need to look out for potential repairs that you’ll have to make to make the place livable.
2. What are your finances like?
How are you going to pay for the property? Are you going to take a loan? If so, what’s your credit score, and what will your loan terms be like? These are just some of the questions you need to answer before you can buy a home. The key question you’re looking for is – how much of a home can you afford? Once you know the answer to this, your decision-making process will become a lot simpler.
3. How does it compare to similar properties?
You might want to do some shopping around to get a better reference point of just how good of an offer you’re dealing with. At the very least, do some research. Then, once you find the right home, shop around some more to see if this is the best that you can get for that price range. This is the best way for you to avoid the phenomenon known as buyer’s remorse.
4. Is the current ownership clear?
According to experts behind Chedid Storey Legal, you can never be too careful when dealing with a property seller. You shouldn’t be surprised to learn that a lot of people own homes that they still don’t fully own. Maybe it’s an inheritance that they still haven’t completely transferred to themselves. Perhaps there are other owners that you aren’t aware of. Sure, none of these have to be why you reject the purchase; however, it could mean that it will take longer to complete the transaction.
5. Does it have a fixer-upper potential?
A fixer-upper potential is one thing that many people overlook; however, it is worth factoring in the price. If you can buy a place cheaply and improve it drastically, you would make a massive saving. Simply put, you would get a much higher quality of life for a substantially lower investment. Still, the fixer-upper potential can be a bit misleading due to the psychological phenomenon known as positive bias.
6. What’s the neighbourhood like?
The location is everything in real estate; however, investors look at the surroundings differently than future homeowners. Whereas investors and entrepreneurs buying commercial properties look at the surrounding infrastructure, potential homeowners look at the quality of life and community features. The key is understanding your perspective before fully committing to the decision-making.
7. Does it fit your future plans?
Even if the place seems ideal at the moment, will this remain so in the future? As a young couple, the place may seem big enough, even spacious enough, for the two of you. However, what if you plan to have children in the nearest future? Also, the place may be near your current job, but what if you have to relocate in the future? Keep in mind that all of these are hard to keep track of, but it’s important that you remain on track.
In the end, buying a new property should always be a decision based on relevant information. It affects your lifestyle, your finances, and, in many ways, your future. You should buy a home that will increase in value over time. So, do as much research as you need, take your time, and consult professionals whenever you have an option.