10 Need to know Secrets For Buying A Home
Do you spend your Saturday morning traipsing from one open home to another?
Up till midnight most nights trawling through properties online to find that one that jumps out & says buy me?
Not comfortable to use a property, buyer!
Well, this list is for you.
After doing a brief survey around the Awesome Lending Solutions office we have compiled a list of the top ten secrets to buying a home.
Some are obvious, and some are not so obvious.
Buying Secret #10: Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit history.
Lenders need to see that you’re reliable
If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.
Buying Secret #9: Get Pre-Approved for Your Home Loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage.
Anybody can get pre-qualified for a loan.
Getting pre-approved means a lender has looked at all of your financial information, and they’ve let you know how much you can afford and how much they will lend you.
Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford.
Not sure what is the best loan for you.
Then give us a call at Awesome Lending Solutions and we will do all the research for you.
We put together a Property Acquisition Plan so you can see the best possible lenders, fees & charges, etc. all from the comfort of your living room without having to go door to door to each financial institution to find the one that is the best for you.
Buying Secret #8: Avoid a Border Dispute
It’s essential to get a survey done on your property, so you know exactly what you’re buying.
Knowing precisely where your property lines are may save you from a potential dispute with your neighbours.
Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up.
Buying Secret # 7: Don’t Try to Time the Market
Don’t obsess with trying to time the market and figure out when is the best time to buy.
Attempting to anticipate the housing market is impossible.
The best time to buy is when you find your perfect house, and you can afford it.
Real estate is cyclical, it goes up, and it goes down, and it goes back up again.
So, if you try to wait for the perfect time, you’re probably going to miss out.
Buying Secret # 6: Bigger Isn’t Always Better
Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses.
There’s an adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small audience, and you never want to limit potential buyers when you go to re-sell.
Your home is only going to increase in value as much as the other houses around you.
If you pay $500,000 for a home, and your neighbours pay $250,000 to $300,000, your appreciation is going to be limited.
Sometimes it is best to buy the worst house on the block because the worst house per square foot always trades for more than the biggest house.
Buying Secret #5: Avoid The Surprise of Those Extra Costs
The difference between renting and home ownership is the additional costs that go with home ownership.
Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities, and homeowner-association dues.
New homeowners also need to be prepared to pay for repairs, maintenance, and potential property-tax increases. Make sure you budget for these costs so you’ll be covered and won’t risk losing your house.
Buying Secret #4: You’re Buying a House – Not Dating It
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions.
There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value.
Going with your emotions is being obsessed with the paint colour or the backyard. It’s an investment, so stay calm and be wise.
Buying Secret #3: Give Your House a Physical
Would you buy a car without checking under the hood? Of course, you wouldn’t.
Make sure you have a pest and building inspection done. It’ll cost about $200 – $500 but could end up saving you thousands.
The building or pest company’s representative’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy.
It’s the only way to get an unbiased third-party opinion.
If any issues are found in the property, you can use it as a bargaining tool for lowering the price of the home.
It’s better to spend the money up front than to find out later and you have to spend a fortune.
Buying Secret #2: The Secret Science of Bidding
If you find yourself going down the path of an auction environment your opening bid should be based on two things:
- What you can afford (because you don’t want to outbid yourself)
- And what you believe the property is worth.
Not sure what it is worth, contact Awesome Lending Solutions and we will be able to complete a property report free of charge to ensure you are armed with the right tools to make an educated offer.
After you have decided to make your opening bid something that’s fair and reasonable and isn’t going to offend the seller.
A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighbourhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer.
Also, see if the neighbours have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
Sellers respect a bid that is an oddball number and is more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific, the sellers will think you’ve given the offer careful thought.
Buying Secret #1: Stalk the Neighborhood
Before you buy, get the lay of the land – drop by morning noon and night.
Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighbourhood wasn’t for them.
Drive by the house at all hours of the day to see what’s happening in the community.
Do your regular commute from the house to make sure it is something you can deal with on a daily basis.
Find out how far it is to the nearest shopping centre, local shops, and other services.
Even if you don’t have kids, research the schools because it affects the value of your home in a tremendous way.
If you buy a house in a good school district versus bad school district even in the same suburb, the value can be affected as much as 20 percent.