There seems to be a great deal of focus on selling a home, which often comes with more stress than buying a home. While the disparity in focus might be partially understood, buying a house isn’t a simple task. Finding your dream home requires forethought, patience, determination, and old-fashioned hard work. Not everyone knows how best to find the home they’re looking for, let alone buying the home in such a way that will allow for it to be sold at a low price. Here are a few tips:
Keep Your Money in One Place
If you’re planning on a buying a home in the next 3-6 months, you’ll want to avoid taking any chances with your credit profile by making large purchases or moving your money around. Lenders need to be able to see that you’re stable, and furthermore, they’ll likely want a complete paper trail so that they can get you a high-quality loan. You’re going to have a hard time getting a loan if you open new credit cards or amass too much debt before buying, so don’t do it!
Avoid Border Disputes
Regardless of the size of the estate in question, be sure to get a survey done on your property so you know exactly what you’re buying. Knowing where your property lines are might save you from a potential dispute from your neighbors, and since your property tax is based (in part) on how much property you have, you’ll want to have an accurate map drawn up.
Don’t Try to Time the Market
It can be tempting to try to time the market and figure out the best time to buy, but trying to anticipate the housing market is impossible. The best time to buy is when you’ve found your perfect house and you can afford to buy it. Real estate is cyclical, in that it rises and falls with regularity, so you’ll probably miss out on the home you want if you try to wait for the perfect time.
Bigger Doesn’t Mean Better
Many people are drawn towards the largest, most beautiful house on the block, and it’s perfectly understandable. Bigger, however, doesn’t always mean better when it comes to houses. The largest house on the block is only going to appeal to a small audience, and you won’t want to limit potential buyers once it comes time to re-sell. The rise in your home’s value, meanwhile, is going to be limited to how much nearby homes rise in value, so you might actually be better served purchasing the worst property on the street (which, per square foot, will almost trade more than the largest).
Avoid Sleeper Costs
The major difference between homeownership and renting is sleeper costs. Many people hone in on the mortgage payment they’ll have to shell out each month, but they often forget about property taxes, utilities, and homeowner-association dues. New homeowners need to be prepared to pay for repairs, maintenance, and potential property-tax increases as well, so when setting a budget for your new home, be sure to budget for sleeper costs so you’ll be covered and won’t risk losing your house.
Source: HGTV