Buying a new home is an exciting event. It’s also one that requires a lot of details – some big, some small. But if you miss any of the details, they could cost you money.
1-Keep in mind the smaller costs and fees:
It’s easy to focus on the selling price of the house. Those are the big numbers you can’t miss. But there are also plenty of other small costs involved when buying a house. So make sure to ask lots of questions during the buying process, and keep in mind that you’ll usually need to have a small fund set aside for before and after the sale. There’s the inspection. Then the closing costs. Then there is the home insurance. And all of the monthly costs of running a home. Not that these should turn you away from buying your first house. But don’t stretch yourself so thin with the selling price that you forget about all the other costs involved.
2-Always read any paperwork you must sign:
This should go without saying, but I’ll say it anyway – read EVERYTHING before you sign it. Sure, most documents will be written in legal “mumbo jumbo” but read it any way. And ask about things you don’t understand. Look for hidden costs. And your rights to cancel a contract if things go wrong. Because it doesn’t matter how badly you get burned, it will all come down to what’s in writing. Even if you don’t pay for it. For example, if you hire a realtor to help you buy the home, and they turn out to be duds, if you sign a contract you may still have to use them anyway. You can never be too careful.
3-Check everything in the house carefully:
This goes for a brand new home, and older home, a home with “lots of upgrades”. Check every little detail. Just by finding something wrong doesn’t mean it has to be a deal-breaker. But the more you know about the home you are buying, the better. Because after the sale, unless the sellers deliberately hide something serious (even then, try proving it) it’s your problem once you get the keys. Make sure to hire a qualified inspector to check the home for you. It’s well worth the cost. And follow the inspector around. Check every scratch, dent, drop of water, light switch – you name it, make sure it either works, or gets listed in the inspection report.
4-Don’t get caught up in the sales trap:
Remember, you’re buying. Everyone else is selling something. So while they may be there to help you, they are in it for the money. This includes your realtor, the sellers realtor, the inspector, the lawyer, the mortgage lender – everyone involved has their own interests to watch out for first. Most of them will be professional and do the job they are hired to do in a professional manner. But realize every benefit presented to you, is also a benefit for them. So ask lots of questions. Don’t assume anything. And watch out for your own best interests.
5-Get professional help:
No matter what anyone tells you, hire a realtor to help you buy the house. It is usually not a legal requirement, but it’s a great way to protect yourself. There are so many details to consider when buying a house, that having someone help you manage all the details is invaluable.
By: Kris Bickell