You ought to be really very cautious while investing in real estate as you would be spending a good part of your life’s savings. However, you needn’t worry so much; all you need to do is be alert and act smart. Here are some handy tips that will not only help you pick the best property but also get it at a good price.
1. Location is of course the biggest criteria
Do not rely only on third party analysis of the location or online and print description of the property. Step out and check the location yourself. It is also advisable to visit the property several times and at different times of the day to check out neighborhood activities. Also, look into factors like accessibility from important locations, neighborhood schools, presence of nearby hospitals and medicine stores and safety to top it all. Take all these factors into consideration before deciding on your property.
2. Work on a Good Credit Score
Hold on to your money and build up a good credit score. A low credit score can diminish chances of your loan approval and compel you to postpone your decision of buying your dream home. Lenders would love to see that you are reliable and will be encouraged to give you good loan options. So don’t go for any new credit card or make big-ticket purchases at least 3-6 months before you seek loan approval.
3. Inspect Carefully
When it comes to selling, all sellers will dress up their homes in the best possible manner. You must be able to read between the lines and ensure that nothing is amiss. Make a checklist before going for the inspection. Ensure that there are no broken pipes that require immediate attention, all rooms are properly ventilated with sufficient plug points and if you have young kids, ensure that the house is child friendly too. It is also a wise decision to hire a home-inspector as it helps you get a third-party opinion on whether the property is a good buy or not. If the inspector finds any issues you can use it as a bargaining tool. So investing in a home-inspector can help you save a lot!
4. Get Pre-approved Home Loan
It is important that you go to the lender with a pre-approved home loan. This gives the lender the confidence that you are interested in buying the property and you have the financial means to do so. A pre-approved loan saves you from a lot of paper work and you can utilize that time in finalizing your deal. Besides, you get an edge over buyers who are merely pre-qualified for loan!
5. Avoid Disputed Property
This is something which you need to be more than hundred percent sure before buying. Ensure that no legal case is pending against the property or there is any ownership dispute. Make sure that the property lines are clear with your neighbors to avoid any potential dispute in future. Get the actual layout of the property as property tax is also based on the exact land that you will own eventually.
6. Bigger Isn’t Always Better
It is myth that the bigger the house, the better it is. Yes, we all try to look for a bigger house for our convenience and need. But is it really good? You have to think of the future of the house. If you wish to resell the house you would not want to limit potential buyers. The value of your home will go up but that might ward off buyers because of the price tag. Sometimes it is a good idea to buy a mediocre house and expand your list of potential buyers.
7. Don’t Judge the Market
Don’t wait for the right time to buy the property. It is not possible to judge the right time. The best time is when you are in a good financial position and have found right property. Real estate market keeps dwindling so by waiting for the right time you might miss out on buying the home of your choice.
8. Keep Emotions at Bay
It is good to like a property but do not buy a property simply by falling in love with it. You can end up making a wrong decision if you go by your emotions while buying your house. Don’t be obsessed with the paint or garden or backyard. So, do go by your instincts if they tell you that the property is a good buy but keep emotions on one side so that you can make an informed decision.
9. Talk to Experts
Though you should not rely on third party but nevertheless you should take expert opinion before buying a house. Work closely with your agent to understand the pros and cons of the property that you intend to buy.
10. Check out Online Real Estate Portals
Online real estate websites can help you save lot of time and hassles. You get detailed information along with pictures of the properties in your preferred location so you get the luxury of choosing your property form the comforts of the home. Online portals also offer you tips on choosing the property and have the ready tools to suggest whether a particular property is hot or not. But again, as stated before do not go by online analysis alone. Go by your instincts and seek opinion of a trusted real estate agent.
Finalizing and executing a property purchase procedure is never an easy task. We however, hope that the tips above will help to ease this important phase of your life and help you buy your dream home at the most reasonable price.