Tips For Buying A Home

Tips For Buying a Home

Tips for Buying A Home provide information that will help you prepare to buy a home, find a good property and negotiate the right price for that home.

Buying a home can be a stressfull situation. However, if you aware of the tips for buying a home, then your journey to buying a home will be less stressfull.

The Key is Preparation

You need to prepare yourself mentally and intellectually. Buying a home is an emotional purchase. If your emotions are not in check, you could pay more for your home than fair market value.

You also need to know the processes involved in buying a home. "Knowledge is power" and the more knowledge you have, the more confident you will be to buy the home that is best for you.

1. Get your finances organised.

Having your finances in order will help you buy the home that is best for you otherwise you will be wasting valuable time looking at homes that maybe beyond your buying budget.

2. Get your loan pre-approved.

There is no point home hunting without written finance approval. Again, you will be wasting your time and other people's time.

3. Get your buying budget together.

There is considerable upfront costs to buying a home. Therefore, a buying budget is essential. Here are some costs to consider for your buying budget.

  • Pre-purchased inspection - building and pest
  • Stamp Duty
  • Conveyancing fees and registration of title fees
  • Mortgage Costs - application fees, valuation fees, lender solicitor's fees and insurance fees (LMI)
  • Other bank Costs - Mortgage stamp duty and mortgage registration fees
  • Home Ownership Costs - rates, insurances and running costs

Find The Best Home For You

However you look at it, it will take you time to buy the home that is best for you. Therefore, it is to your advantage to get it right the first time.

If you spend the time and get it right the first time, you could save yourself a considerable amount of money. There are good purchases available if you spend the time to get it right. For example, you spend the time and get it right and you end up saving 5% on a $500,000.00 home. Do you realize that your saving is $25,000.00. That's worth the time and effort.

1. Get your wish list together.

It is absolutely important that you know what you are looking for. So put together a detailed wish list. Be specific. Somethings are essential (needs) and other features are non-essential (wants). For example, it is essential to have four bedrooms. It is essential to have an ensuite in main bedroom. It is essential to have two bathrooms. However, parking is non-essential.

Getting your wish list together will distinguish needs and wants and ultimately determine How Much House Can I Afford.

2. Get to know the fair market value of comparable properties.

If your buying budget is $250,000.00, then you need to compare several homes within this price bracket. You will need to inspect fifty or so homes to determine which homes are value for money. After inspecting fifty or so homes, you will know which ones are potential bargains.

3. Get together a short list of homes to inspect again.

This short list (ten homes) will be the homes that suit your needs, your budget and a fair market value.

You should reduce this short list to three or four in order to begin to negotiate a sale.

Negotiate The Right Price

1. Get a feel for the vendor's motivation to sell.

If the vendor is highly motivated to sell (desperate to sell), then you have a window of opportunity to negotiate in your favor. There is nothing wrong with getting a home for less than the asking price.

2. Get together a fair offer and begin negotiating.

There are four books that are worth reading so that you can understand the buying and selling process.

  1. The Insider's Guide To Buying Real Estate by Patrick Bright
  2. Real Estate Mistakes by Neil Jenman
  3. Don't Sign Anything by Neil Jenman
  4. Real Estate Without Agents by Terry Ryder

These books will prepare you for the sale of your property.