We all know buying a new home is a huge step for anyone – it is probably one of the biggest decisions and largest purchases you will ever make in your life. We have found some of the best kept secrets for buying a new home and we’re here to share them with you.
1. Don’t Try to Time the Market
Avoid obsessing with trying to time the market and stress about when is the best time to buy. Trying to anticipate the housing market is absolutely impossible. The best time to buy your home is when you find the house of your dreams and can afford it. Real estate is cyclical. It goes up and it goes down then back up again. If you try to time the market, chances are you will miss the best opportunities. It’s simply a never ending cycle that you can’t really beat.
2. Bigger isn’t Always Better
This is a huge mistake a lot of people make without realizing it. Everyone is going to be naturally drawn to the biggest, most beautiful house on the block – it’s inevitable. There’s an old adage in the real estate world that says don’t buy the biggest, best house on the block. The largest house will only appeal to a very small audience and you never want to limit potential buyers when you go to re-sell your home. The fact is, your home is only going up in value as much as the other homes around you. So it isn’t always the best idea to
3. Avoid Sleeper Cost
The only difference between renting and buying a home is sleeper costs. Most individuals only focus on their mortgage payments, but they also need to be aware of property taxes, utilities, and home-owner association dues. New home owners also need to be prepared to pay repairs, maintenance, and potential property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing your home. It is always important to make sure you’re aware of these “hidden cost” because they can really make or break your budget.
4. The Secret Science of Bidding
This may be one of the most important aspects of home buying. Your property bidding should always be based on two things: what you can afford and how much you really think the property is worth. Make your opening bidding something that is fair and reasonable that is not going to offend the seller. A lot of people think they should go lower the first time they make a bid. It really all depends on what the market is doing at the time. It is important to look at what other houses are going for in the neighborhood and you want to get an average price per square foot. Sizing up a house on per square foot basis is a great equalizer. Interestingly enough, sellers respect a bid that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will see you’ve given the offer careful thought and consideration.
5. Thoroughly Review Your Contract Before Signing It
This one may seem like a no-brainer, but sometimes people either don’t read through every single thing or are too nervous to ask questions. Buying a home is probably the largest purchase you’ll make in your life, so making sure you understand all the terms of your contract is super important. If you don’t understand all of the terms, ask your real estate agent and your mortgage broker to clarify. It’s so important to make sure you know everything in your contract in case there are any issues along the way.
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