Purchasing a house has become increasingly difficult. Even the downturn in the market has not proved to be enough to make homes affordable for many. That’s why it’s so exciting when you are finally in a position to purchase your first home.
However, the excitement and lack of experience can easily mean that you make simple mistakes, these errors can end up costing you a lot of money.
That’s why you should be aware of them.
Know Your Budget
If you visit enough financial consultants you may get told the figure you want to hear. However, when budgeting for a home you need to be aware that things can go wrong. That’s why it’s essential to always have a small cushion to protect your long term interests.
Decide what you can realistically afford and stick to your budget.
You’ll find a real estate agent may try to tie you into an agreement, on the basis that they’ll know your needs and save you time. But, unless your time is extremely valuable, you don’t want to be tied to an agent.
Take a look at open houses, check out this auctioneer Sydney, and even look at private listings, you never know where you’re going to find your perfect first home.
Seeing a house that you like and can afford can often be enough for you to place an offer. However, you’ll never notice the smaller details n a first visit. That’s why it’s essential that you return to the house for a second viewing before you make an offer.
This will allow you to see it and its faults, ensuring you know what you’re really purchasing.
The price is a guide, while some sellers will not budge, there are plenty that will. You need to be prepared to make an offer and be patient. Even f the house doesn’t work out and it seems perfect, there will be another that fits your bill just as well, if not better.
Your mortgage company may insist on this but, even if they don’t, you should. It’s important to know what issues you may be facing.
In fact, it’s worth adding a home inspection into the contract as a contract contingency. This gives you a get-out clause if a serious issue is found.
It should also be noted that if repairs are needed the seller is not obligated to do them. But, that doesn’t mean you can request an amended price or ask them to do the repairs. They may want to do them to avoid losing the sale.
Consider The Future
It may be that all you can afford is a one-bed apartment. That’s fine. But, consider if you’re planning to have children and how soon. It can often take 3-5 years for the value of your property to rise significantly enough to cover the costs of selling and buying again.
If you’re likely to have children soon you may want to hold out for that two-bed home.