Very important property buyer guidelines
The process of buying a home could be summed up into 3 words — It. Is. Expensive. Whether you are a first-time homebuyer or selling one dream home for another, there are tons of things that you should know before buying (in addition to the fact that it’s expensive). Aside from the obvious things, such as getting pre-approved, what do you need to know before signing on the dotted line? Even if you already own a home, you may still find some of the tips in this article very surprising, insightful and helpful.
Should You Really Give Up a Great Rental to Buy?
Over and over again we have been told that home ownership is a smart investment, and that we should stop throwing away our money on rent. Let’s stop and think about this scenario for just a moment. Let’s play devils advocate. Assume that you are currently renting a great little apartment for $1000 per month. Heating and utilities are included, there is a nice fridge, oven, dishwasher and microwave provided, and there are great laundry facilities available. In this situation, you know that your monthly costs are exactly Rs 10000 per month. Now, let’s pretend you forgo this lifestyle because you dream of owning your own home. After house hunting, you find your dream home, so of course you excitedly buy it. After all, the bank says that your mortgage will only be Rs15000 per month, so you can pull that off, right? Wrong!
Here are some additional expenses that you may have forgotten about. Expenses that fluctuate on a monthly basis, thereby forcing you to have a large nest egg set aside: heat, water, electricity, property taxes, home owners insurance, lawn care, home association dues, home maintenance costs for when things break (and they will), furniture to fill the home, washer and dryer (now that you don’t have those nice laundry facilities) and all the kitchen appliances that were provided up until now —Does buying still seem enticing?
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Hire a Buyers Agent
If the above list of expenses doesn’t scare you, and you still feel ready to buy, then hire a very reputable buyers agent. These are real estate agents that are meant to solely represent you and help you negotiate the best possible price. These agents are supposed to be professionals and highly skilled at negotiating.
There is only one cautionary tale when it comes to buyer agents — they are only human so, of course, their own financial gains are also being taken into consideration. This means that the more you pay for the home, the more the agent makes in commission. You need a buyers agent to help you negotiate, but their sole goal may not be to get you the lowest possible price. It is best to politely, yet firmly, push for the price you want and then have the buyers agent negotiate this price. Simply put, don’t go into this blindly and assume the agent will do all the work for you. You need to be your own proactive advocate when it comes to the negotiation process.