Monday, January 30, 2017
The Right Moves To Make The Right Deal As A Homebuyer
Buying a home is a huge decision with huge financial and legal implications. Even making the best calls possible puts you in a place of great long-term responsibility. It can be one of the most effective and reliable investments you make in your life, but there are plenty of ways it can go wrong as well. Buying a house is all about making the right decisions with the options and information available to you. Here, we’ll look at how you avoid some of the biggest mistakes that home buyers commonly make.
The right budget
You shouldn’t be agreeing on any sales before you have a clear budget laid out. Most people will consider the budget primarily for the buying of the home, but you need to have cash available for all parts of the sale. This includes inspections, any independent valuations, the use of contractors like realtors and conveyancing services. Do your homework on the costs you can expect. Whether you’re using a loan or your savings, make sure you have more than enough to cover all the different parts of the budget.
The right intel
Once you have the money set aside, you want to make sure that it’s going to the right house. Nowadays, a simple viewing isn’t enough and can even be considered naïve. You need to take into account as much detail about the home as you can find out. This might include getting in touch with real estate experts to find out more about the area, about potential problems or even potential developments that could increase the home’s investment potential. It also includes getting an independent idea of how much the house is worth so you have a point from which you can negotiate the seller down from the market price. The intel should also include a thorough investigation of the home so you can spot any work that you might have to do (or get the seller to agree to do) and figure out how that will impact the overall cost of getting the home up to your standard.
The right protections
Sometimes a deal doesn’t go the way you want and there’s little you can do about it. However, you want to make sure that your budget isn’t taking too big a hit from these false starts. When buying a home, most buyers will be required to put in an earnest money deposit. This deposit guarantee that a buyer is intent on buying the home and is usually released when the sale is complete. However, that deposit is lost based on the contingency clauses around the home. These clauses can include situations like the buyer not attending a viewing at a certain time or not securing money within a reasonable time-frame. It’s important to look at your specific circumstances when signing contingency clauses. Pay attention to deadlines and ask the seller if you can move any that you know you won’t be able to meet. Missing said deadlines, even by a day, can have costly effects on the process.
Buying a home isn’t something that should be done with little preparation. It’s too easy to spend more money that you would like on a home that doesn’t truly fit your needs. It’s also too easy for the process to go wrong and take a big chunk out of your finances when it does. Stick to the tips above and you’ll be able to mitigate some of the greatest risks and ensure that you are making the right deal for you.