Congratulations – you’re geared up for a house purchase! Disclaimer: Purchasing a house is a back-breaking project in anyone’s life. It involves making hardcore decisions, success, failures and accountability of everything. Therefore, you must gander at five things that you must do before buying a house, like finances, paperwork, etc. Otherwise, you’d bite off more than you chew.
The majority of new house owners perceive their mistakes down the road. It’s all because there are some hidden secrets that are out of sight. Yes, you heard it right! Today, we’ll uncover the six hidden secrets of buying a house. So, stay tuned!
1. Survey The Neighbourhood:
Before you jump to the conclusion, investigate the lay of the land. Drive to the streets in the morning, afternoon and night to observe the movements in the neighbourhood. Commuting in that area where you’re planning to buy the house help you make an informed decision.
Additionally, take a look at the distance to the grocery store and other services from your house. In case you’re a parent, research the best schools nearby. It is because you may think you’ve found a perfect home, but you may get shattered after move in.
2. Key Points Of Bidding:
Do you know the secret science of bidding? No! Well, many first-time buyers may not be aware of this! Your first bidding should be based on two factors – what you can afford and what’s the property value, in your opinion. However, ensure that the bidding you make is fair and realistic.
Several home buyers get in a dilemma and, as a result, bid a lower amount. Consider the same points as you buy a block of land. For instance:
- Research the price of square feet of land
- Furthermore, check with your neighbours for their plans on new additions, like a playing court
- Additionally, get information about the property taxes from your would-be neighbours
Considering all these points, quote your bid for the whole house.
3. Observe The Hidden Costs:
Remember that there may arise costs you’re probably unaware of, for example, earnest money payments, loan processing fees, surveying fees and many more. Furthermore, there may be yearly maintenance costs to bear. Therefore, be careful of these costs and always keep an additional budget to avoid surprises later on the road.
Moreover, be aware of other costs, like utility bills, property taxes and homeowner-associated dues. They are called sleeper costs. Make sure that you have an extra budget for these expenses also.
4. Small Is Sometimes Better:
Every one of us is attracted to bigger things, like large cars, big schools for kids, and so on. But that’s not necessarily better when it comes to house purchases. The old-age perception in the real estate industry recommends going for the worst houses on the block. On the other hand, the large house may appeal to a limited number of people when you resell the house. It will give you the value as the other houses on the block.
Therefore, it’s best to give the nod to a less appealing house. It’s because they are way cheaper than the bigger ones.
5. Be Aware Of Your Boundaries:
Yes, otherwise, you’ll get several nightmares! It’s significant to be aware of your property boundaries to help you know what exactly you’re purchasing. Get the survey of your site done properly and learn the precise property lines. Not to forget, it will save you from getting into a conflict with your neighbours.
Also, remember that your property taxes would be based on the size of your property. Therefore, it’s best to have an accurate map of your property.
6. Get A Home Loan In Advance:
Last but the most important one: get a pre-approved loan. Being a pre-qualified buyer and a buyer who has a pre-approved loan for the purchase has a vast difference. Pre-qualified for the loan means you’re eligible for it, whereas a pre-approved means lender has gone through your financial information and has allowed you the loan.
Getting a pre-approved loan saves you time and headache. Furthermore, it permits you to look for the best deals at the best interest rates. However, research well about the processing fees and other hidden costs before taking a loan.
Be A Smart Buyer!
No matter how well prepared you are, you’re bound to make mistakes. But you can act smartly by being aware of the hidden secrets of buying a house that we’ve mentioned above. The key to being a clever buyer is research. The more you’ll research, the happiest buyer you’d be on your block.
Erika Rhein, as a professional writer and blogger by profession, I write on various niches. However, I prioritise writing on blogs related to home improvement, lifestyle, etc. I always aim to provide users with useful and informative articles in an appealing format. I strive hard to achieve a difference through my writing.