Buying a home brings excitement and eagerness, whether it’s the first time or even the third. Because the hunt for a great place is an emotional process, sometimes significant factors get lost in the decision making. Below are critical topics to keep in mind to ensure you’ll enjoy your new purchase. No one wants to face buyer’s remorse after their name is on the deed.
Account for All Your Expenses
One of the top causes of buyer’s remorse in real estate is financial burden. Buying at the peak of the loan amount for which you’re qualified without considering other expenses can be a big regret. Lawn maintenance, unexpected repairs, higher water and heating bills, and other similar homeowner expenses need to be figured into affordability. Homeowners are advised to have enough cushion for maintenance upkeep and unexpected repairs on things like furnaces, air conditioners, water leaks, and gutters. Stick to a lower price range if it offers a better financial quality of life in terms of monthly bills.
Also know how much it will cost to purchase your home. Don’t forget to factor in the cost of home insurance, title insurance, points on your mortgage, the down payment, mortgage insurance if applicable, title company fees, and recording fees. It’s advisable to estimate these costs with your lender prior to entering into a contract rather than waiting to see them a few days before Closing.
Prioritize Needs Over Wants
Distinguished what you truly need from what you want. A list of needs and wants often includes things such as:
• Number of bedrooms
• Number of baths
• Number of garage spaces
• Square footage preference
• Style of home (ranch, two-story, colonial, etc.)
• Floor plan
• Upgraded countertops and fixtures
• Newer windows, roofing, and HVAC system
Always focus on your needs first and treat wants as your bonus. For example, you needed four bedrooms but settled for three because the house you picked had lovely French doors and crown molding throughout the house. Later it’s clear that siblings sharing a room wasn’t a great idea for your kids. You wish you had that extra bedroom so that everyone had their own private domain.
Consider the Location
Location is often the first need buyers consider. Usually a specific school district or desired part of town dictates where to live. But sometimes home buyers don’t know where to commit. Keep in mind proximity to work, highways, parks, schools, and railroad tracks. For example, some people don’t like driving more than ten minutes to get to the highway they use for work. Others willfully accept a longer commute in order to buy a newer, more spacious home outside the city.
Make Sure the Purchase Contract Protects You
There are several contingencies in a purchase contract that protect buyers. Home inspection terms and mortgage and appraisal approvals are some of the more common ones. Establish prudent timelines so that you can easily be released from the contract if something found during inspection makes you leery to go through with the purchase. Read every word of the contract before you sign it and review with your Realtor®.
Choose a Reputable Agent and Ask Questions
Choose an agent who you feel comfortable with and confidant in his abilities to represent you. During the home buying process, ask your Realtor® plenty of questions. A huge part of his service is expertise. If your agent doesn’t know the answer to something, he’ll point you to the proper resource. Agents who have spent time with many kinds of buyers can aid with prioritization.