Things to Consider When Buying a House
Monday Jul 19th, 2021
From getting married to having kids, some moments in our lives stay with us forever. One of these is buying a new house. However, it’s easy to lose yourself in the moment and overlook key factors while doing so. Some are pretty obvious, while others are easy to forget. Hence, we’ll list a couple of things to consider before you get the keys to your new home. Let’s check them out, shall we?
Don’t Hesitate to Have a Realtor by Your Side!
Most buyers are reluctant to contact a real estate agent. After all, it’s easy to assume that they will rip you off in some way. But it doesn’t have to be like that. If you opt for a trusty boutique-style agency like Team Rene, the realtor will do most of the work, and it will all be in your favor. From negotiating the price to scheduling home inspections, it really is something to consider.
Of course, the real estate agent will get the cut of the money, and that’s quite normal (there is an option to go with the off-market process, and that will save you some money). But it’s important to know that it won't necessarily come out of your pocket. The interest rate comes from the seller, not the buyer. Hence, this is why you should contact a realtor agency during home purchase and make the whole process easier for both sides.
Keep an Eye on the Contract
It’s no secret that the home buying process involves papers. Moreover, it can involve a ton of them. And in case you’re a first-time homebuyer, you can easily think that none of those are open for negotiation. But just like any other contract, the one when you’re buying a house can change in certain aspects and into your favor.
Again, this is why having an experienced realtor by your side is important. They can help you review the paperwork, suggest changes, and deal with legalities too. Therefore, there’s no reason in the world to sign something immediately. You should take your time, consult friends, family, and experts before making any decisions.
Think About Your Long-Term Plans
Buying a home for the first time can easily make you overlook everything else since it’s such a big financial commitment. In other words, you might get lost in the moment. But you should try to take some time and assess the situation long-term before jumping in. The things you’re looking for right now might easily change in a year or two. Whether it’s due to having kids or changing your job, you shouldn’t restrict yourself to a single lifestyle and a home that’s only suited for that.
As such, there’s no shame in skipping something you’re not confident about. It’s better to be safe than sorry when it comes to big investments. And just like that, you shouldn’t settle for a house that might not suit your life now and in the future. In case you do, you’ll end up paying the mortgage rates for years without owning what you want. So, keep on house hunting, even if there’s the slightest of doubts in your mind.
Are You Ready to Commit to Something Like This?
When someone mentions commitment and buying a house, it usually comes down to mortgage payments. However, we’re not talking about that. Sure enough, money is a big part of this whole process. But what about the future of your relationship? This is a bit tricky to talk about, but it can negatively affect homeownership.
As you surely know by now, relationships sometimes fall apart and one partner ends up with titling, payments, liability, and repairs. This is why you should make an agreement with your partner that will keep both parties safe if you decide to call it quits. Moreover, it’s best to have a lawyer overlook the agreement since it needs to be in writing.
Curb appeal is something that catches the buyer’s eye first. The way the house looks from the outside, its colors, landscape, and lovely rooms are all great. Unfortunately, that’s not something you should focus on while looking to buy. You should be a bit smarter and think about expensive fixes and labor costs you’ll need to pay for once it comes time to redecorate.
Cosmetics are important, but so are other things. You can always buy new appliances and change the furniture. Yet, remodeling the whole bathroom or building a new one will drill a much deeper hole in your wallet. The same goes for the kitchen. We, therefore, suggest that you think about whether you can afford all the fixes once the house becomes yours.
Don’t Let the Mortgage Company Fool You
In some cases, a mortgage broker will allow you to spend more money than you intend to at first. As such, it’s easy to neglect things and go all out. Unfortunately, this often leads to problems if you change careers or the economy goes south as it did a decade ago. So, if your mortgage lender approves you a larger amount than you intend to spend, dial things down. Don’t let the allure of big money fool you.
Related: choose the right mortgage
In our eyes, it’s best to think about whether you’re going to have the same financial income in the years ahead of you. And if you’re not certain about your career, look for a house in a lower price range. This way, you’ll be able to make your payments even with less money in your bank account. Make sure the taxes, mortgage, and insurance sum up to around 30% of your gross income, and you’ll be in the clear.
The Purchase Price Is Just One Piece of the Jigsaw
Most people think that buying a home is all about finding a place that you like and paying the purchase price. Nevertheless, things are a bit more complex. Aside from the price, you’ll need to take care of taxes, insurance, and some other fees like the homeowner association fee. Add to that the renovation cost, and you’ll be deep down in the mud before you know it.
If you’re not careful, fees can quickly add up and leave you in a risky position. We suggest that you ask around for what you’ll need to pay eventually. These fees might include pool maintenance and cooling/heating systems if it’s a fancy place. But don’t forget that a premium location house with a low purchase price almost always comes with much bigger bills and additional expenses.
Do You Really Need to Buy a House Right Now?
Isn’t it strange that we all have that feeling that once we turn 30, it’s time to buy a house? Well, that sounds great on paper, but buying isn’t always an option. In case your professional or personal life doesn’t allow you to purchase real estate, maybe it’s best to wait a bit longer and think things through. After all, renting isn’t the worst scenario in the world.
Of course, we would all want to be independent at some point, and we should strive for it. There’s no doubt about it. But our independence doesn’t have to come at any cost. Moreover, it shouldn’t come at a mortgage that you can’t pay off later on. So, don’t worry — it’s not the end of the world if you can’t find a house at a reasonable price and in a safe and cozy neighborhood. There’s always the rental market.
Home prices have been skyrocketing all over North America in recent times. As such, more and more young people are looking to rent instead of buying. With a trusty and savvy realtor’s help, you can easily find a great place for you and your partner to start a new life. This way, you’ll also be able to see for yourselves what the neighborhood is like.
Renting a place is a great option if you’re not sure about your career, commitment, or even the house you’re looking for. You can think about it as a kind of test drive, helping you experience something before you buy. Also, renting will allow you to stay mobile and change scenery much quicker. As such, it surely isn’t the worst of ideas to ponder on.