When people buy a home most tend to do some bit of research before actually getting serious about the process. However, there is quite a bit more in terms of buying tips home purchasers should be aware of but frequently are not. There were ten critical tips that were shared by Dottie Herman and Eric Tyson on the June 2nd broadcast of “Eye on Real Estate” radio show. Herman, the CEO and President of Prudential Douglas Elliman, and Tyson and real estate mogul and best-selling author, discussed real estate topics for listeners near and far.
These tips include:
1. Affordability – Buyers should know before even beginning of discussion about buying that what they can truly afford in a house and what they cannot. This rule is critical to avoid getting locked into a house that will end up costing too much and will eventually end up in a foreclosure down the road. The bank, mortgage broker, and real estate agents won’t always watch out for this. Many times the fees and initial interest pay off any loss risk they might have before the loan is sold off to another lender.
2. Map Out Personal Circumstance – The same way a homebuyer determine affordability ahead of time, he should also understand every aspect of his personal circumstances. This includes all other liabilities, income, demands, expectations and future financial plans. All have an influence on buying a home.
3. Comfort Level – Buying a home also needs to be as stress free as possible. A home buyer will not be in the right frame of mind to buy the right home for his needs if he’s worried about holding onto a job, expecting a child in a month or two, trying to close a major deal, or deal with a divorce. Life has many moments of stress and moments of calm. Buying a home should happen only during periods of as much calm as possible.
4. Avoid Salespeople – It never fails. A party goes into buy a home and gets hammered with ten to twenty different sales pitches before the home purchase is done. This can include insurance policies, pest contracts, warranties, alarm systems and even landscaping. Every opportunity to leverage another sale is attempted by home sellers and their affiliates.
5. Hire a Good Financial Planner – This seems like an odd tip. Why does someone need a stock picker to a home purchase? It’s not quite that sort of situation. A financial planner provides a valuable service in looking a one’s financial activities from an outside perspective. A planner can point out where advantages or disadvantages exist, which can make thousands of dollars difference from taxes to real estate investment.