For a lot of people, buying a home is the single biggest financial decision that they’ll make in their life that also affects their lifestyle by quite a bit. This is why the consequences of a mistake can be quite serious and the idea of this may be quite stress-inducing. Still, there are several things you need to know when buying a house and the simplest way to avoid making a mistake is to stick to a checklist. Here’s what should be on this checklist.
How much house you can afford
One of the fastest-growing trends in the world at the moment is the tiny house movement and the reason why this is relevant for our story is due to the unique approach to the issue of cost. When it comes to the cost of a home, the majority of people immediately think about the purchase price, which, on average, goes around $290,000. Not that much, right?
However, the down payment is another $58,000, the interest over the course of 30 years is almost $195,000, taxes and insurances are about $6,000 per year, maintenance is $300 per month. Finally, major improvements and repairs for this house will amount to about $300,000 over this period. This means that the cost of buying a house over the course of 30 years comes down to about $1,073,000 on average. This is why you need to think about exactly how much house you can afford.
Don’t just go for the first thing you get offered
Another thing you need to take into consideration is the fact that what you’ve set your mind on might not be what you really want. This is due to the fact that you don’t really know what else is out there for you. For instance, if you plan to buy a home in Sydney, you should start checking out house and land packages in Austral and other suburbs. Who knows, you might eventually even decide to go for a raw lot and make your own construction instead of buying a pre-built, pre-owned home.
Find a buyer’s agent
One more piece of advice worth considering is getting a professional buyer’s agent to represent you. You see, real estate agents are professionals at what they do and when negotiating with a layman, there are so many sales tricks that they can use in order to close the sale. The simplest way to avoid this is to hire a professional of your own to represent you. These specialists can help you get a better deal, which is why paying them always results in a positive ROI.
Perform a thorough home inspection
The next thing you need to ensure is that you don’t regret the decision that you’ve made. Now, this happens for a lot of reasons and it’s impossible to rule out any of them, however, some of them are impossible to consider before you actually move in. As far as the inspections that a buyer can do, you can start with the basics like chimney, heating and air conditioning. After this, you can proceed with the structural issues and proceed to look at the roof, signs of wood damage, foundation and traces of lead in paint or plumbing.
Other than this, it’s also smart to look at issues like the sewer or septic system, landscaping and test the soil for its composition and stability. In the end, checking out plumbing and electricity is important but also quite fixable, whereas some of the above-listed issues may be far more serious.
With these several simple tips on your side, you’ll get yourself out of harm’s way when it comes making one of the most easily avoidable mistakes. Keep in mind that this is an investment that you’re making just once in a lifetime (most likely), which is why you need to make sure that it’s something that you’re 100 percent satisfied with it. By abiding by these six simple tips, you’ll easily avoid making one of the most expensive mistakes in your life.