7 Essential Things to Know When Buying a Home
Are you thinking of
buying a home? Based on real estate market forecast and predictions, 2016
is a great time to buy a home. But before you take the plunge, here are 7 essential
things to know when buying a home.
Oftentimes
people would think about using the service of a realtor will cost more, but the
fact of the matter is the seller pays the realtor through commission. A realtor
will also protect your interest by guiding you through the entire home buying
process – from price negotiation to home inspections.
2. Buying a home
involves a contract
Contracts
are meant to be signed. However, it does not necessarily mean that you should
sign straight away. Contracts provided during home buying process are usually
standard contracts. There is still room for negotiation. You are given time to
review the contract and wish to waive a radon test, you can be able to make it
as part of the deal where a trusted realtor
can also help you with.
3. Think of it as a
bigger financial commitment
Buying
a home is one of the biggest financial commitments that you will make, so you
should consider your long-term plans. You should also consider the current
interest rate and your financial situation, such as job stability and current
credit situation. If you feel that a certain home would actually make you
struggle financially, then it would be best to keep looking until you found the
right home.
4. Don’t fixate on the
purchase price
Owning
a home does not only entail just the purchase price. You should also consider
other factors such as insurance, homeowner’s association fee and real estate
taxes which also depend on which state you live. Other factors such as
maintenance and repairs will cost money as well. So owning a home does not only
involve just the purchase price.
5. Don’t get carried
away by the home mortgage interest deduction
Many
people are thinking that buying more houses can save them enough through home
mortgage interest deduction. That is not the case because it is only deductible
if you itemize on your schedule A.
6. You don’t have to
buy a house
Owning
a home is the ultimate dream for everyone but there is no rule saying that you
should be a homeowner by the time that you reach a certain age. As mentioned
earlier, there are several factors that you should consider since buying a property
or home entails bigger financial and emotional investment and responsibility.
Consider housing market, interest rates, and timing and of course your future
plans. If you are having second thoughts about buying a home, consider renting
as a test drive.
7. Look beyond paint
When
buying a home, you should look further not just on how pretty the interior
design is. If you think that you dream home already has a room that you would
like to change think about the overall cost of fixing or changing a certain
area of the home which could mean double or triple the price.
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