Buyer Beware? Nah, just 10 Things Every Homebuyer Needs to Know

Never bought a home before? Or, bought a home long ago? These tips will help you better understand the home buying process especially in this day and age.

Know Your Needs

It's important to think of the limitations each locale offers your lifestyle and the perks each has to offer -- before making the commitment to buy. And, the type of dwelling is important. Will you quickly outgrow that studio? Is a Florida cottage the perfect size? Will purchasing a condo allow you to forego the chores of maintenance and enjoy more leisure time?

Weigh The Costs Of Homeownership

There's more to consider than just a monthly mortgage payment. Will you be able to afford the expenses that come with owning a home? Utilities, property taxes, repairs, homeowners association fees, lawn maintenance can all add up.

Better to build or buy?

Having a home custom-built to your specifications can be expensive. But are you ready to take on remodeling and updating an older home to meet your needs? Do your research before signing with a contractor or deciding to revamp an older home.

Location, Location, Location

A bargain is never really a bargain when located in a less than ideal neighborhood. Sometimes events result in skyrocketing property value -- but that's rare. It's better to take a chance on a home in a great area where the value will only rise.

Know Your Loans

Points, PMI (private mortgage insurance) and closing costs can drive your mortgage cost up. Some programs allow buyers to have smaller down payments. But know the terms and consequences. Be sure to read all the clauses and fine print before getting a mortgage. And shop around for the best rate.

Consider A Buyers Broker

Most real estate agents represent the seller, but a Buyer's Broker (also called a Buyer’s Agent) represents your needs and desires and helps you locate the property that's best for you. While buyer's brokers are difficult to locate in some markets, locating a professional advocate who is required by law to get you the best price and terms can alleviate home shopping stress. Pick those with extensive knowledge and experience in your desired area.

Demand Full Disclosure & A Professional Home Inspection

Most states require that a home seller disclose potential problems with the property, but the homeowner may not always know or reveal existing structural problems (despite the legal requirement). The only way to truly know what's going on inside (and over and under) a home's structure is to secure the services of a reputable home inspector who should alert you if the home isn't up to code or has major issues.

Get It In Writing

Perhaps one of the best ways to protect yourself is to have every part of the sale in writing, and make sure you understand every aspect before making a commitment. Legal jargon and real estate terminology can be confusing and somewhat frustrating, so study your real estate vocabulary before house hunting!

What To Do Before Completing The Purchase

The closing must include steps to ensure title is "free and clear" and there are no problems with you assuming ownership of the property. Purchase homeowners insurance and consider the purchase of a home warranty.

Don't Forget About Taxes

Are your property taxes rolled into your monthly mortgage payment? Or will you be responsible for paying them yearly? Keep your paperwork for your annual federal or state income tax return. You can often deduct the property taxes, points and interest paid on a mortgage. Consulting a tax accountant can optimize these benefits.

Posted by Support Staff on April 11th, 2016

Real Estate Blog