For most people, buying a home is the largest or most expensive purchase they will make in their lives- so it is very important to research extensively and be fully prepared before you even begin considering signing your name on those dotted lines. You need to ensure that your budget is in check, also check your long-term financial goals and assess your budget before you buy.
These tips will help you get your budget in shape and finally buy that new home you have been dreaming of.
Have A Budget
Working with a budget is the first step towards buying a new home .
“How much money do I actually have?” That’s the first question you need to ask yourself. You need to figure out your household income after Tax and find out how much money you are left with each month. Make a list of all monthly expenses; like bills, utilities, insurance,as well as groceries.
You need to know where to cut back, once you have all your expenses down and take a look and see if there are areas that you can improve upon. Make necessary adjustments so that you can put as much money as possible into savings and you won’t be caught off guard.
Research whether there are other expenses you’ll need to work into your budget even after buying a home.
Keep Tabs On Your Real Estate Agent
It’s important that you communicate your budget clearly with your real estate agent, emphasizing the need to stay within that stipulated budget. You need to be firm and stick to your words where negotiation is concerned. That being said, some agents may try to push you and recommend properties outside your price point which might later result into you being a victim of buyer’s remorse (a feeling of regret experienced after making a purchase)
Good agents respect your finances and only show you homes you can afford. If you find your agent is persistently asking you to look at more expensive homes, it’s probably time to find a new agent.
Don’t Compare Yourself To Others
A house is not a pair of shoes or an expensive handbag- if you overspend when buying a house, it is not easy to recover from the mistake. When it comes to buying a home, you don’t need to compare yourself to others. It is very easy to fall into the cycle of “compare and despairing” and this is a wrong cycle to fall into. Rather than obsessing over the fact that your best friend bought a house with a budget of 50 million naira and you are working with a budget of 30 million naira, all you need do is to congratulate him/ her and be proud of what your 30 million naira budget can do for you. Then, think about ways you’ll benefit from staying within your budget, such as maintaining a healthy vacation or retirement fund, and investing in any other business.
Bid On Houses That Are Not Selling
In recent times, most buyers shy away from homes that have been on the market for a long time, assuming that there must be some hidden defect. But sometimes, a home’s inability to sell is much more simple. For instance, location might be a barrier, or there’s too much inventory (stock of property) in a particular market.
Therefore, it is important that you do not automatically rule out a house just because it had been sitting for a long time. You may later find out that the seller is probably motivated and willing to drop the price in order to move the property. This is good news especially if you fall in love with a house that is higher than your budget.
Even if the seller is not willing to drop the price, there is still room for negotiation because the home has been on the market for months.
As part of the negotiation, you may be able to reveal some problems that needs repairs such as issues with the plumbing, electrical system, roofing, appliances, or windows, you can ask the buyer to make the needed repairs, or you can take your offer off the table.
It takes discipline to stay within one’s budget when buying a house. Hence, it is best to approach the buying process with care. Know what you are willing to spend, and refuse to look at homes listed above your budget. But by learning more about the steps you can take to find a home you can afford, you will find that buying a home is less of a mystery, and really just a process. Do it right, and reap the benefits of a secure and happy future.
Make that dream a reality!