Investing in Real Estate: How to Pick Out Your First Home
First-time homebuyers need to do plenty of research before they lock themselves in a deal. Sometimes, not all offers will pay off well in the long term, especially if you want to gain back your investment. For this reason, it’s necessary to understand how to pick the best place for your life’s savings.
What you invest in now will pay off in the future
The home buying process typically involves finding a home and negotiating your prices. However, there are plenty of other steps beyond and in between the two. Knowing how each step can impact your long-term investment will benefit your judgment criteria of what home you’ll choose.
If you want to put your money in the right real estate, here are four steps you should follow:
Step#1: Scout out your chosen market
Finding the right home starts with eliminating your options. Beyond a home’s features and curb appeal, you should consider where you plan to buy it. The location should be your priority, especially for your needs. If you’re planning to move near your work or the university you plan to enroll in, it’s best to choose the closest property with the best living accommodations possible.
Different real estate markets will have varying rules and regulations, including your loaning markets, property taxes, and more. Understanding how these variables can impact the buying price and long-term mortgage costs will give you an edge when negotiating the offer.
Step#2: Get preapproval for a loan.
Although it’s best to have an exact figure of your potential mortgage expenses, it doesn’t hurt to get loan preapproval ahead of time. It will also give you a more specific budget limit on how much you can pay out of your own pocket and with the bank’s help. FHA loans are the most common for first-time homebuyers since it has the lowest down payment requirements. However, you may want to consider REO banks if you’re going to buy foreclosed properties.
Step#3: Hire a home inspector
Once you have your eye on a particular property, it’s time for you to pay a visit. However, you shouldn’t let your own eyes be the judge when going to an open house. Instead, you can hire a home inspector to survey every nook and cranny of a house. They can give you an expert opinion on gauging the true quality of a house by pointing out vulnerabilities and necessary repairs. Some states have home inspections as mandatory procedures for the homebuying process, while some do not.
Step#4: Negotiate your offer
Using the information above, you should now have a rough estimate of your financial capacity and what leverage you can use to lower the initial offer. Sellers don’t necessarily expect you to pay the property’s marketed value. In fact, they’re ready to face negotiations when necessary. However, you must use credible information to defend your case.
For example, you can ask about the association fees and homeowners’ taxes and see if you can waive them off the overall retail price. Additionally, you can point to small but necessary repairs that the home seller should cover under their budget. These back and forths will ensure that you’re making the most out of your first home purchase.
Following the steps above doesn’t guarantee that you’ll get a favorable deal in the property market. For this reason, many first-time homebuyers hire a real estate agent to assist in their affairs. A reliable agent can manage all of the above steps and more so that you can buy a home that’s worth your time and investment.
Quest Real Estate, LLC is the best property management company in Jacksonville, FL. We’re ready to serve you by finding the right home for you. Get in touch with us today, and our real estate experts will handle your search for a brand-new house without any worries!