It is out there in the open that High-Net-Worth-Individuals (HNWIs) invest in real estate actively. They have their people and vast resources in place to get the job done. Of course, not everyone can conveniently pull off what they can. But, we can surely learn a thing or two on how to do things right–especially when you intend to buy a house.
Buying a home is one of the greatest decisions you’ll make in life. It is not just about the money that goes into the process; many emotions are involved. So, a wrong decision will impact you financially and mentally.
Thus, take note of these five pointers to buy the right home for yourself.
- Know Your Budget
The first tip to buy the right home is to know how much you can spend. Even the HNWIs come with limits. In simple words, know your budget. Understand that you’ll need money even after having bought your home. Money will be required for its maintenance, especially in the first few months before everything settles down for good.
It is advised to start the search from the low end of your price range. In case you find a property that ticks all the boxes in the checklist, you don’t need to look further. Even if you go further up, you should be careful about the extra amount you’d spending that may not look good in your accounts.
- What do you want a house for
This question must have an answer for you to figure out your priorities. This simplifies your search as you can filter out unwanted properties from the list.
If you want to raise a family in the new house, then you’ll quite likely end up looking for family-friendly, residential communities with schools and parks. In case you intend to let out the property in the future and make some money out of it, you’ll have different requirements.
- Get mortgage pre-approval done
Undoubtedly, and quite embarrassingly, it’ll be a waste of time if you place an offer to purchase a house and fail to pay up. You’re free to explore but must not place an offer until and unless your loan has been pre-approved. If you don’t get this done, you can never be sure whether you’ll get the loan when the time comes. The bank can flatly refuse to lend, interest rates could spike up, or the terms and conditions may not suit you.
- Create a checklist
Based on the checklist, your budget is determined and improved over time. To pick the right house, you must write down all the non-negotiable factors. HNWIs know what they want based on their lifestyles so should you.
Transport connectivity, green spaces, especially children’s parks, attached/detached garages, secured access, rooms, countertops, bathtubs, and whatnot could be on the list. Once you’ve figured these out, you may want to take them up with your real estate broker/agent with whom the next pointer deals.
- Hire a real estate agent
One can guess the huge demand for real estate agents/brokers from the estimates by the U.S. Bureau of Labor Statistics. Estimates project a 5% growth from 2021 to 2031 in the employment of these professionals. And, trust me, hiring one of them isn’t a bad idea. Of course, there’s a commission fee involved that may not sit well with many people. I won’t impose on you to hire these professionals but will certainly highlight reasons why you should.
Purchasing a property is more complex than exchanging a house for wads of cash. There’s a lot of work in between. You need to read, understand and apply local laws, undertake a considerable volume of paperwork, engage in uncomfortable negotiations, and assess the property’s value. Unless you’ve expertise or have experienced individuals around, you’re quite susceptible to poor dealings, even frauds. These professionals will take up all the work from you and get things done. In the end, you may end up saving more than you thought.
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