One of the biggest financial deal that most of the people ever make is Buying Real Estate. Don’t you think so? We buy one house in our lifetime, and there are lots of risks while buying a house. So, here are five tips that you should consider while buying Real Estate.
The first thing that should be considered while buying a house is that you should use a most trusted realtor because realtors get a cut of the sales price of the house. So, if you are interested to know it in detail then here are 5 secret tips which you should consider while buying real estate.
Five secret tips when buying Real Estate
5. Buy a house if you plan to Live there for long
Many people wanted to buy a house because they think that paying a house rent is the way they are throwing their money away. But buying a house, it also can be a bigger financial mistake than not buying it at all.
[ CAPTION: Buy a house if you plan to Live there for long ][ SOURCE: Alex Price Toronto Realtor ]Suppose if in case you buy a house and then you need to trade it a couple of years later then these transaction costs would wipe out any equity that you may have collected. So, buy the house if you are planning to stay in the same house for a long time.
4. Take a lot of time for shopping a house
After you have decided to buy a house, you should not rush to the house-hunting process. As per a personal finance coach,
“When I've had clients make real estate deals they've regretted, they've almost always coincided with time pressure. You almost always overpay relative to what you would have paid if you were on a more cautious timeline."
[ CAPTION: Take a lot of time for shopping a house ][ SOURCE: searchaustinlakehomes.com ]3. Set a proper budget
Buying a house is not an easy work, it’s an exciting experience, as there is a normal temptation for buying a house that you can barely afford. Most of the people would be happy if they buy a house which is cheaper than the amount which is lent by the bank.
[ CAPTION: Set a proper budget ][ SOURCE: BIIG Trend ]It's very much important for you to decide how much you are prepared to spend and then you reject to get over the amount. You should set a fix limit yourself during the process of mortgage preapproval. As you can ask to be preapproved for the exact amount that you planned to spend.
2. Remember- House purchase involves a contract
When we are ready to buy a house, there are some of the important papers to sign. And most of those papers are actually contracts which look like standard home buying contracts with no room for cooperation.
[ CAPTION: Remember- House purchase involves a contract ][ SOURCE: LinkedIn ]But that’s not true because contracts are meant to be negotiated. You don't have to sign a standard agreement because if you want more time to review your inspection, you can make that part of the deal. That's where your realtor can help you.
1. Don’t be pushed in any House
Your realtor should show you everything which meets your desires. Don’t make any type of decision on a house until you feel that you have seen enough to pick one of the best.
[ CAPTION: Don’t be pushed in any House ][ SOURCE: House Plan Blog ]Some of the market agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time but today there isn’t always this urgency, unless a home is drastically underpriced, and you’ll know if it is. The major things you should consider to check into the school district of the area that you are considering. You should check all the location and information yourself and should not trust blindly to the realtor, before buying a real state.