Owning a house is among the biggest investments that a person can make in their lifetime. It is a venture that most people that only undertake once in a lifetime. It is for this reason there is a risk of making mistakes when purchasing a house. The risk of facing challenges is because most real estate companies have more experience than you hence can exploit your ignorance. In relation to this, we present eight incredible ways to buy a house that will assist you find the right house within your budget.
1. Projected Appreciation
The future predictions of the neighborhood from which you intend to buy your house have a significant impact on its price. Indicators that your house can appreciate in value in the future include construction of a mall, new companies operating in the area, or the construction of a major highway through the town. All these can hike property prices in the area in anticipation of the new developments.
Contrary to this, if businesses such as gas stations and retail stores are closing down, then property prices should be more affordable. You should take advantage of this and buy your home in the area while prices are still low.
2. Buy a House if You Want to Settle Permanently
Do not buy a house in haste to escape paying rent, which you see as throwing away money. Buying a home in a hurry may turn out to be the biggest mistake you will ever make if you do it without thoughtful considerations. Buying and selling a house is a tedious and expensive process that may cost you up to 10 per cent of the house value. Therefore, buying a house and then selling after a few years will wipe out equity accumulated because of the transaction costs involved in the transaction.
3. Do not be in a Hurry to Buy
Once you decide to buy a house, do not be in a hurry when house-hunting. If you have settled on the city you want to settle in, rent a house in the city for some time. This action will give you enough time to look for a house and also know more about the place. It will enable you to purchase a house whose location is convenient for your children in relation to distance from school and also your work convenience.
4. Find a Reputable Realtor
If you are a first-time home owner, it is advisable to buy through a property management agency to guide you. Ask friends and colleagues for recommendations on a good realtor or search on an online directory. Getting references will help you identify those that have provided satisfactory services to clients. Keep in mind that realtors have different priorities from yours; all a realtor wants is to close a deal as fast as possible.
5. Look at Properties Sold Recently
Compare the house you want to buy with other similar ones recently sold in the same neighborhood. You can obtain this information from your realtor or look at comparable properties (comps) on escrow; this means that the house has found a buyer although the sale has not been completed.
6. Look at Unsold Houses
Compare the house you are thinking of buying to houses that were withdrawn from the market because of failing to sell. If you find one that is similar to your consideration, then it is probably overpriced. Furthermore, if the market has many similar houses that are vacant, then they should have lower prices.
7. Stick to your Budget
It is exciting to buy a house and there is an unexpected urge to buy a house that is way beyond your budget. If you want to avoid regrets in the future, try and buy a house within your budget or even lower than what you initially budgeted. Do not spend money set aside for emergencies to top up your budget and buy a bigger more expensive house.
8. Test the Waters
You will lose nothing by making an offer below the offer price for the house just to elicit a reaction. Some sellers give an offer with the least price they can take while others give a higher price expecting a buyer to negotiate downwards. Therefore, it is always good to make a counteroffer to see if the seller will agree.
About The Author:
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.