Top 10 Tips for First-Time Home Buyers
Buying a home for the first time is exciting— but for many young people, it can also be terrifying. You'll have a long-term mortgage instead of a brief rental contract. Rather than relying on a parent or a landlord to make repairs and maintain the place, you are now going to be in charge of it all. It's a big step, but a rewarding one. As you begin the hunt for your first home, here are some essential tips to keep in mind.
1. Get a Realtor
A knowledgeable South Florida realtor can alert you to homes that are just coming on the market. Your realtor is your advocate, your consultant, and your never-ending resource for valuable information about comparables, features, and true market value. The realtor advises you about how high or how low you should go with an offer. He or she acts as your go-between, contacting the seller on your behalf and working through the negotiations if necessary. Find a good realtor, and don't let go!
2. Use the Wish List as a Guide
You probably have a lengthy list that details everything you hope to have in your new home— and that's a good thing. A wish list helps you stay focused on your needs and wants so that you don't fall in love with a home that doesn't work for you at all. Just remember that your wish list is a guideline, and you probably won't find a South Florida home that has every single item you want. As much as you may long for a feature, such as recessed lighting in the hallways, you may not find a house that includes it. If you find a home that checks the most important boxes on your list, grab it! You can always add in the other elements that you want after you buy it.
3. Look Toward the Future
As much as you may love the house right now and want to live in it forever, you have to think about the fact that you may one day have to move again. You need to secure a home that not only fits your needs now, but carries great resale value. Try to find a place that you can improve a bit to make it even more desirable when you eventually have to sell.
4. Be Realistic
You've seen the shows on TV— the couples who want a home in the heart of the city, with plenty of space, at a low price. That's just not going to happen. If you want to live in a city's downtown area, you're going to have to make a sacrifice somewhere. City center homes are usually small and inexpensive, or large and pricey; and if you find a downtown home with lots of square footage that is also affordable, there is probably some hidden issue with the house. Be prepared to give up space, stretch the budget, or take on a fixer-upper.
5. View the House Twice
If possible, walk through the house twice with the realtor. The first time you go through it, you may be overwhelmed with emotion, imagining yourself and your family in the home. Wait a day or so, then ask the realtor to show you the home again. This time, set your emotions aside and focus on the nitty-gritty elements and the practical aspects of the house.
6. Insist on an Inspection
Always have the home inspected by an impartial third-party expert. Find someone who has a reputation for thoroughness, honesty, and expertise, and pay that inspector to check out the home before you buy it. The inspector needs to examine the house from top to bottom, looking for wiring issues, faulty plumbing, drainage problems, roof leaks, and so much more. That inspection can alert you to serious issues that could affect your decision to buy the home.
7. Have Your Financing Lined Up
Prepare the financing and secure the loan you need before you go house-hunting. If you don't, you could lose your dream home to someone else who is better prepared and has the papers and finances all in order. Keep in mind that you shouldn't be spending more than 30% of your income each month on your mortgage, or you may become "house poor"— owning a beautiful home but not having enough resources left over to truly enjoy your life in it.
8. Consider the Neighborhood
You may find the perfect home, with just the right number of bedrooms and all the features you want; but if it's not in a good neighborhood, you should probably move on with your house-hunting. Avoid this kind of disappointment by researching the neighborhoods in the Fort Lauderdale and Miami areas. Find out where the best schools, shopping centers, eateries, activities, and other amenities are located; then ask your realtor to hunt down some listings in or near those desirable neighborhoods.
9. Plan for All the Costs
If it's your first time buying a house, you may not fully understand all the expenses that will be involved. You know that you have to budget for the mortgage payment, but what about the hidden costs and fees? There is the principal payment, the interest, the taxes, and the mortgage insurance; plus you may need to pay an HOA fee for certain neighborhoods. Will you have to commute farther to work? That may raise your transportation and gas costs. What about utilities? Heating and cooling a larger space costs more money, especially in an older home that may not have energy efficient features. Then there are the costs of any renovations or changes that you want to make to the home. Estimate these costs and work them into your monthly budget to ensure that you're buying a home you can actually afford.
10. Don't Ponder Too Long
Real estate is a fast-paced business. A house may sit on the market for weeks, and then suddenly have multiple offers on the table. Of course, such a large purchase demands careful thought, but don't think about it too long before making a decision. As soon as you know what you want, empower your realtor to act quickly on your behalf and secure the property before someone else snatches it away. If you haven't had time for the inspection yet, you can always make that a condition of the sale.Keep these tips in mind as you look for a house, and you'll be settled in your very own home before long!