Buying a house is one of the most significant financial investments one can make in their lifetime. If you think you are ready and serious about buying a new home, here are some important things you need to consider.
- Research your requirements, builders and lender options
Start the buying process by first researching your requirements. Consider your long-term plans like whether you intend on staying at your current job or are getting married and planning to have kids in the near future. This will allow you to objectively determine how much mortgage payments you can afford say in the next couple of years. Decide on the type of property you want to buy like whether you are leaning towards a mobile home or are more interested in an active lifestyle community concept like Taylor Morrison homes. Whatever that choice is make sure to do an online search on builders. Find out how long they have been in the business and whether they are a reputable company. Go through previous customer reviews and check if there are any common issues raised. Make the time to visit the area and talk to homeowners. When it comes to finances, compare mortgages and other loan products to find the most suitable payment terms you can afford. Also, verify with the builder if they require that you get pre-approved by their preferred lender. If they do, it might be the most practical option available.
- Hire a reputable realtor
Another important step is to pick a great real estate agent from any legal firms like Rose & Jones who is not affiliated with the builder. A licensed, highly regarded realtor can assist you with negotiations with the builder. Also, they are up-to-date with real estate news so they know about special promos and can help spot contractual differences if you opt to go with the builder’s preferred lender. If you are buying a new home, make sure they are experienced in new construction. They can offer advice on matters that may impact your home’s resale value. Note that there are builders that require you to be accompanied by your realtor on one of your first visits. Your realtor can coordinate with the builder on your behalf about site registrations making visits to the communities more convenient.
- Learn to negotiate creatively
You can ask the help of your realtor to research the negotiation style of the builder you are working with. It may be shooting for the stars but try to negotiate a discount or a deal. Most buyers don’t and won’t drop prices because it might set a precedent and affect future sales so instead ask for a free upgrade. Most homes come with average quality appliances which could be upgraded to higher-end appliances at a cost. Ask if these upgrade fees could be waived. Another option is to ask the builder to shoulder the closing costs or throw in free landscaping or an automated garage door system. Nothing to lose if you ask.
- Get a home inspection and warranty
Hire an independent, qualified inspector. Do it yourself, not your realtor. You want the inspector to work for you and your best interests. Just because a home is new doesn’t necessarily mean it does not have any problems. A home inspection will help guarantee the safety of the home and that works done are compliant with building codes.
- Study the contract carefully
Remember that nothing is set in stone. You can negotiate the terms of a contract. Read and review the contract carefully. Engage your realtor in the process and let them do the negotiations for you.
