The global economy has taken a brutal hit from the coronavirus pandemic, but the residential real estate market has held up well to the adversity.
Residential homes are still moving quite fast through the market, with many people looking to find their dream home.
Whether you are a first-time buyer or you have bought multiple homes before, we can all agree that settling for a specific property is not an easy decision to make.
You have lots of options in the market and a budget to work with, and you never seem to find one that fits your preferences or suits your budget.
Whether you are using a mortgage or paying in cash, you want to make sure that you find the right property in the market. After all, this is where you will raise your children and entertain your guests.
But in a market full of options, how do you narrow down to find the property that ticks all the boxes for you? Keep reading to learn about some of the best-kept secrets every home buyer should know.
What to consider when buying a home
Table of Contents
Here we go;
Work With an Agent
If you have a lot of time to spare and can manage to uncomfortably go to open houses and sift through a host of options on the internet, you do not have to work with an agent. However, a buyer’s agent will help you save time and eliminate some of the uncertainty you may have about some properties.
If you need to buy a home, a buyer’s agent can directly send you some listings that match your preferences.
They also know the new listings that will hit the market soon even before they do, allowing them to access some of the best properties before other buyers can have a look at them.
Apart from this, buyers’ agents have the information needed regarding homeownership for Singaporeans to identify overpriced properties and quickly advise you accordingly.
Additionally, your agent takes on every aspect of the house-hunting process, so they spend their own money on gas and commute while you work on other essential elements of your life.
Find the Right Property
Finding a property that suits your needs and preferences is not easy. During your search, you should work with no more than seven homes at a time since anything more than this will get you stressed out and stranded.
Many people tend to do a lot of research before they even check out a single home. They tend to spend more than six weeks trying to decide on whether you want to leave before they can start looking for the ideal property.
Statistics indicate that many homebuyers only pay for home after an average of two to three home tours after deciding on the perfect location for their new home.
Get a house loan
While you do not necessarily need to have a bank or mortgage broker before buying a home, it helps to have a pre-approval before starting the actual process.
While a pre-approval is not guaranteed to get the money you need, it shows how much you can afford to spend on a new property. If you are buying your first home, you want to go for a loan with a minimum down payment.
If you already have a religious agent to work with, you can ask them to refer you to a mortgage broker. You can also talk to a credit union or a bank to check out their offers.
Before deciding, take enough time to compare the different types of mortgages you can access and shop for one that offers the best terms and depending on your position.
Negotiate for the best price
One of the most common mistakes made by home buyers is comparing the price of two different homes. Any seller can set any price for their property, but this does not necessarily mean that it will sell up for that specific price.
Real estate agents can help you access pending sales and comparable sales. You can use similar sales to look at properties in the same condition and location that have sold over a specific duration.
In most cases, comparable prices are based on age, lot size, square footage, features, style, and location. You will rarely find properties similar in every aspect, but you can use the differences to determine the property’s value.
Pay For a Home Inspection
Some locations require a mandatory home inspection before you can make a purchase offer. Other places treat an inspection as a contract contingency.
In this case, you have the right to cancel the contract if you identify any problems you weren’t previously aware of during the inspection. After all, who wants to pay for a property with a faulty foundation, for instance?
Sellers are under no obligation to make repairs or adjustments to the property if the home inspection reports any problems or faults. The main point of a home inspection is to help you, the buyer, identify any issues with the property and bring them to your knowledge.
Depending on the seller you work with, you can request repairs. The seller may then have to make repairs or reduce the selling price of the property based on the extent of damage, depending on your agreement.
In summary, you should forget about the mythical promised land if you want to buy a home. However, make sure you understand some of the secrets that govern the real estate industry to ensure that you find the best deal suitable for your preferences and budget.
Start by finding a qualified real estate agent familiar with the location you want to buy property in before you can start searching for the ideal property.
After finding a suitable home, remember to get a pre-approval loan to determine how much you can afford to spend on a property. Also, remember to negotiate the offer based on the comparable sales statistics to not overpay for a property that could cost a much smaller amount.
Before completing the purchase, you can pay for a home inspection to identify any problems and faults, factor them into the final buying price, or have the seller repair them before paying for the property.