Important Considerations Before Buying a House
It is common knowledge that a house is the biggest purchase most of us will make in our lifetimes. As such, it is critical to follow a few guidelines to ensure a successful purchase. We have all heard about the poor schmuck who found “a steal”, only to find out after the purchase about the midnight subway route next door.
In general, three categories need to be addressed before buying a home. The first concerns you, your financial ability and your requirements. The second category concerns possible pitfalls surrounding the purchase of the property. These include mortgage concerns, litigation, title disputes and other potential red-tape entanglements. The final broad category concerns the house itself and its physical condition.
If possible, retain an attorney to ensure a straight deal and clarity in all legal matters. However, even if you do have an attorney, be actively involved and learn as much as you can. Knowledge is power and never more so than when buying a home.
The very first thing to do, though, is to determine your budget. Will you be able to able to afford the new home? This is much more extensive than it might seem. The realtor’s fees, the title processing, any litigation, etc. must all be considered as potential costs and that is not even looking at the cost of the house itself! Other factors to consider, when determining a budget, include moving costs, insurance on the new house and additional bills that might be associated with the new home. A real-estate book can help illuminate the complicated and obscure aspects of buying a home. Any bookstore will have a plethora of real-estate books with a more comprehensive study of homebuying than is possible in this summary.
Second, investigate and learn about the people and processes involved in the sale. Does the realtor have a good reputation? Is the house free and clear? Does the property have any liens placed on it? This is where a real-estate attorney proves valuable.
The third category is the house itself. Have it inspected by a licensed home inspector, but do not rely on the inspector alone. Even if you aren’t a contractor or mechanically savvy, walk around and scrutinize EVERYTHING. Do the windows open and close smoothly? Are there water stains under the sinks? Do the toilets flush smoothly? Open and close all the doors to check for binding. Imperfections give you an advantage when it comes to debating a price.
With all the above in mind, it can be a daunting process to purchase a home. However, once you have made the decision to buy, leave the emotions at the door and proceed with thoughtful determination. One study showed that most people make a decision about a house within the first ten seconds of walking through the front door, but it is CRITICAL to keep your emotional response at bay.
Finding the right home can often take a year or more and this can turn into an emotionally draining experience if emotions take control. Many houses will appeal to you, but, for a variety of reasons, will not turn out to be “the one.” The emotional build-up and letdown can be severe, so it is best to remain calmly detached until the purchase is final. Once you’ve made the purchase, you can celebrate, knowing that you have done all in your power to ensure a successful sale.