Buying a first home has continued to be difficult over the years, largely due to rising housing prices and low prices. But 2020 has changed all that. Built by historically low-interest rates, a lack of market investors, and significant government incentives, early homeowners look set to dominate the real estate market by 2021. We always advise the users to compare home loan interest rate for different banks.
Home buying tips
- Choose a real estate agent carefully
A good real estate agent will look at a home market that meets your needs and guide you through the negotiation and closing process. Find agent referrals to other recent home buyers. Talk to at least a few agents, and ask for directions. When talking to potential employers, ask for their information about helping first-time marketers in your market and how they plan to help you find a home.
- Choose the right type of house and neighbourhood
Measure the pros and cons of different types of homes, given your lifestyle and budget. A condominium or townhouse can be more expensive than a single family home, but shared walls with neighbours will mean less privacy. Don’t forget to budget your homeowners’ money when buying cottages and city homes or houses in organized or gate communities.
Another option is to buy a fixer-upper – a single family home that needs renovation or renovation. Fixer-tops usually sell for square meters more than ready-to-enter homes. However, you may need to make an additional budget for repairs and renovations. The restructuring loan captures the value of the home and the development costs of a single loan.
Think about your long-term needs and whether the start of a home or permanent home will meet them best. If you are planning to start or expand your family, it may make sense to buy a home with an extra room to grow.
Look for potential locations. Choose one of the resources that are important to you, and check out the commute to work during rush hour.
- Stick to your budget
The lender may promise to lend you more than you can afford, or you may feel pressured to spend money outside of your comfort zone in order to make a purchase for another buyer. To avoid financial pressure on the road, set a price list based on your budget, and stick to it.
Look for properties that are below your price range to provide a bidding room for a competitive market.
- Make the most of open houses.
Online 3D home visits have become very popular during the COVID-19 epidemic. These visitors allow buyers to pass through the house at any time and to see the details of the regular photos. They do not provide all the information that people can visit – such as what carpets smell like – but they can help you narrow down your list of places to visit.
Open your senses when you visit personal homes. Listen to the sound, pay attention to any smell and look at the overall atmosphere of the home inside and out. Ask about the type and age of electrical and plumbing systems and roofs.
- Pay for a home test
Home inspection complete inspection of building and equipment systems. Professional inspectors look at potential problems, so you can make an informed decision about buying a property. Here are some things to keep in mind:
- General tests do not detect substances such as radon, mildew or insects. Understand what is included in the test and what other tests you may need.
- Make sure the inspector can reach all parts of the house, such as the roof and any crawling areas.
- Traditionally the consumer attends the test. By following a nearby inspector, you can gain a better understanding of the home and ask questions right away. If you are unable to attend the exam, review the inspector’s report carefully and inquire about any ambiguities.
- Talk to the seller
You may be able to save money by asking the seller to pay for the repairs in advance or lowering the price to pay for the repairs you will need to make later. You can also ask the seller to pay some of the closing costs. But keep in mind that lenders can reduce part of the closing costs a seller can pay.
Your negotiation power will depend on the local market. It is difficult to drive more money when there are more buyers than homes for sale. Work with your real estate agent to understand the local market and plan strategies accordingly.
- Buy enough home insurance
Your lender will need to purchase homeowner’s insurance before closing the agreement. Home insurance covers the cost of repairing or replacing your home and property in the event of an injury covered by the policy. It also provides credit insurance if you are facing an injury or an accident charge. Buy enough home insurance to cover the cost of rebuilding a home if it is damaged.