Most people dream of buying a house of their own, where they can make a family and grow old with their partner. However, this is a huge financial transaction and can make a big dent in your savings. Buying a house doesn’t always mean spending thousands of dollars, and follow these tips to buy a house more consciously
1. Don’t buy the first house you visit.
Buying a house isn’t a love at first sight kind of deal, never buy the first house you visit, except if you have a lot of money to throw around. Don’t rush the process of house shopping; your real estate agent will always try to up-sell the house to you, tell you it’s in high demand and if you want to buy it, you have to do so as soon as possible. Let me tell you a little trade secret, this is fake 90% of the time; they are telling you this to make you want to buy that specific house, they know how to entice you and this is why you should take your time while house shopping.
If you plan on moving to a new city and buying a home there, then I advise you to rent an apartment in that city for a couple of months and then start house hunting, it makes you acclimating to the neighborhood easier and won’t be as much of a shell shock when you finally move to your new place.
2. Choose a budget and stick to it
Always have a budget in mind when you go house hunting and never, and I repeat, never go over it, no matter how much you like the house. Real estate is your market and you’ll always find a place that fits all your criteria. I guarantee you that a big house won’t matter in the long run as it will take more money to repair and maintain. A more affordable and sizable house will do the job and will spare you from any future unnecessary spending in the long run. I guarantee you and this is coming from experience; there is nothing more grueling than owning a house that you clearing can’t afford.
Having a budget keeps you grounded and avoids any spur-of-the-moment decision. If you are taking a loan to buy your new property, then it’s even easier to stay within your budget. Always tell your realtor that your loan has been preapproved according to your budget. let’s say your budget is $500 000, tell your realtor that price so he/she won’t show you any property beyond your price range. They might try to upsell you if they know you are still waiting for your bank to approve the loan and this also offers you more leverage while negotiating.
3. Only buy a house that you see yourself living in for a long time.
Again this isn’t cloth shopping, and you should not impulse buy. Consider the neighborhood you will move in, the facilities it offers, and the school district your children or future children if you plan on having any will transfer to. The process of buying and selling a home is also an expensive one. If you think of moving out of the house that you are planning to buy, you might want to stop and think about this. When you sell it later down the line, it will lose value and will not sell at the same value as you bought it. A house usually depreciates by 6 to 10% when you sell it.
Choosing the perfect neighborhood can make or break your living experience. Remember, your home will always be part of a pre-existing community and you have to be cordial with your neighbors, which can make your living experience more pleasant. This shows that the cost of the house isn’t the only thing you should consider while buying a home. You should consider other things like its size and location, among other things.
Sound off in the comment section below and tell us if you are currently house hunting.