Real Estate DC: Things You Should Know When Buying A House For The First TimeReal Estate December 18, 2018 No Comments on Real Estate DC: Things You Should Know When Buying A House For The First Time 143
Is this the first time you are buying a house? There are plenty of things you need to know. Here are some of these things as given by real estate agent:
Get a preapproval letter first
When people are looking to buy a house, the first thing they do is to drive through the neighborhoods they are looking to live in. Others go to the extent of talking to the neighbors so that they can understand more about the area.
While there is nothing wrong with this, this shouldn’t be your first step when you are looking to buy the house of your dreams. The first thing you should do is to get a preapproval letter or pre-qualification letter from the lender of your choice.
When you do this, you will know the exact amount of money you can give as an offer when you find a house that you like. Getting a pre-qualification letter also provides you with a guidance on the type of house that you should be looking for—one that you qualify.
Hire a real estate agent
You don’t always need an agent when buying a house but when you are doing it for the first time, it’s wise that you have one by your side. You should note that no two agents are the same; therefore, you should take your time to find one who will work on your side.
A good agent should put your best interests ahead of everything. The agent will provide you with information about the current market condition.
The professional should also use his/her connections to find a house that is ideal for you. If there are any necessary negotiations, the professional should negotiate on your behalf and ensure that you get a good deal.
Be cautious when buying a new home
Some homebuyers avoid older homes as they feel that they require a lot of repairs and maintenance. While this is often true, it doesn’t mean that new homes are better.
For home builders to maximize on profits, they build the houses quickly so that they can move onto the next project. This means that even if the house might be new, it might be having issues that you should be cautious about.
Before you go ahead and make a purchase, hire a home inspector specializing in new home construction. The professional should inspect all areas of the house from the floor to the ceiling. If there are any issues, he/she should notify you about it and its upon you to take the necessary step.
Pay attention to schools even if you don’t have kids
Did you know houses in best school districts tend to cost significantly more than those in areas where schools don’t perform well? While you might be tempted to go for a cheaper house located in an area with average education standards, you should know that when it comes time to sell the house, you will have problems selling it.
Even when you find someone to buy the house, you will most likely sell the house at a lower price, due to the lower education standards.
If a house is in an area with good education standards and it’s within your budget, you should go ahead and buy it, regardless of whether you have kids.
Buying isn’t always better than renting
Many people want to be homeowners. Most of them feel that they are throwing away money when renting. You should note that a house is a great investment when you are planning to stay long enough in it to see a profit. If you are looking to stay for a short time, you might want to rethink about it.
For you to determine whether buying is the right decision for you, you need to pay attention to the upfront costs such as closing costs, maintenance costs, insurance, any other fees that you might incur during the purchase.
If you are planning to sell the house later, you need to consider the costs of selling the house. These costs include: appraisal fees, closing costs, realtor commissions,and other costs.
Buyer’s agent observes that if you are looking to stay in the house for just a few years, you will be better off simply renting the house.
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