Things Every New Home Buyer Needs To Know

Buying a home is much more involved and detailed than picking the next car you sport around in.  There are things that every new home buyer needs to know.  From finding your perfect location to signing on that dotted line at closing, make sure that you take the time to understand what happens in-between as well as around the home for years to come.

There are many steps to buying a home.  Making a list to start your home buying process is a great beginning.  Have you considered your needs?  Take a look at current arrangements.  If you see no changes in your near future your search criteria will be far different from that of someone who expects life changes within the next few years.  Will your family be expanding, is being close to work important or do you plan to retire soon, is it possible that other family members may need to move in with you, or will the children be heading off on their own?  There are varieties of considerations from those about the home itself to the appreciation of what is in the local community which will affect the quality of life and your home buying experience.  Concentrate on an area that will meet your needs for several years or more down the road.

Now that you have the general idea of what you are looking for and the area in which you would like to live, let’s look at some basic things every new home buyer needs to know:

• Overall Cost of Ownership – Does the neighborhood have a Home Owners Association and does that require monthly, quarterly or annual payments?  Most homes have a yard to maintain and there is also the cost of monthly upkeep from cleaning, to repairs, to basic maintenance.
• Range of Affordability – Get qualified for financing and understand that you do not have to spend all that you qualify for.  Securing the funding is also a good idea.  Knowing what you can spend narrows down your options.  If you are a first time buyer you will have more options afforded to you, such as local assistance programs.  Look at area offerings and qualifications.
• Your Perspective Community – Research everything from local schools to area attractions.  Even the proximity of major roads makes a difference in home values.  The local city and county office should be a resource in reviewing future community plans such as commercial or residential building.
• Ready Set Maintenance – Are you handy with tools?  Just because a home states that it has ‘updates galore’ and is ‘move-in ready’ does not mean that all or any work was done by a licensed professional.  If you are able to find a home that needs repair, there is benefit to placing some of your own sweat equity into the preparations and repair of a home considered to be a ‘fixer-upper’.  Make a list of what you can do on your own or with minimal assistance.
• Down Payment – Being able to place 5-20% or more down is always a good idea and creates immediate equity in your home.  Base your down payment on the affordability of your monthly payments, as well as holding a reserve for home improvements once you move in.  The more you can use towards a down payment, the better off you will be.
• Prepare For Negotiation – Your agent will do all the negotiating with the seller’s agent but don’t be afraid to become creative in your offer.  Additionally, if something comes up during your home inspection, use this in your negotiations.  Make a list of items that you can leverage and make sure that you ask questions.  This may be your home for years to come and asking questions will not offend your agent.
• Understand the Process – It is not an activity that can be completed in a day or even a week.  Know the importance of each phase of the process and don’t be manipulated into rushing to sign or skip steps.  And never sign anything that you haven’t read and thoroughly understand.
• Be Prepared to Walk Away – Most important, you do not have to buy a house to have your American dream.  The dream is different for all of us and you are allowed to just walk away before committing to binding legal documents if you don’t feel comfortable.

For more interesting information and household tips, stay tuned to this blog. For more information about buying or selling your home, or to see current homes in your area, visitwww.bidselect.com.  Don’t forget to join our online community by connecting with us onFacebook and Twitter.

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