Seven Things You Should Know Before You Buy A House

Are you ready to buy a house? Purchasing a home is one of the most important financial choices you'll ever make. Here are 7 Things you must know about buying a home, from determining pricing to why you should hire a realtor:

1. Hire a reputable real estate agent. We all know that realtors take a cut of a home's selling price, which makes some buyers wary of using one because they think it raises the total rate. Keep in mind that the commission is paid by the seller, not the buyer. According to a Kharghar-based real estate agent, a knowledgeable realtor who works with you will safeguard your interests and direct you through the entire buying process, from price negotiations to home inspections.

2. Keep in mind that buying a house entails signing a contract. There are documents to sign while purchasing a home. Many of those documents, which are actually contracts, seem to be "ordinary" home purchase agreements with no space for negotiation. That is not the case. Contracts are supposed to be bargained over. You are not required to sign a standard contract. You can make it part of the agreement if you want more time to check the inspection, or make a purchase contingent on mortgage approval. That's where a knowledgeable realtor can come in handy.

3. Don't buy solely for the sake of the life you have now. Purchasing a home is likely to be one of the largest financial commitments you'll make in your lifetime. Remember your long-term goals before agreeing to buy what you believe to be your dream home. Do you want to continue working at your current position? Are you getting married? Considering starting a family? You may not actually pay off any real equity for five to seven years, depending on the economy and the terms of your mortgage: if you aren't sure that your house will be the house for you in a few years, you may want to keep looking.

4. Consider your commitment. We are not just referring to your mortgage. When you get married, the laws usually govern how your properties are handled, and how they are eventually divided in the event of a divorce. When you're not dating, the same rules don't always apply. That means you must consider the long term. If you're buying a house with someone who isn't your partner, make sure you have a backup plan in case things don't go as planned. It's a good idea to have a written agreement in place about titling, mortgage payments and liabilities, and maintenance, among other things.

5. Don't limit yourself to paint. It's not uncommon for your dream house to have the one room that you've already imagined changing. It's important to note that while cosmetic problems (a coat of paint or some wallpaper) are relatively inexpensive to repair, kitchen and bath renovations can be costly. People tend to concentrate on the cost of cabinets, appliances, and counters, but they often overlook the cost of labor, which can double or triple the cost. That isn't to say you shouldn't buy a house that needs a lot of work, but you should consider those costs when deciding if you can afford it.

6. Don't get too caught up in the purchase price. The purchase price is just one aspect of home ownership; be sure to factor in all of the costs associated with your future new residence. This includes premiums, homeowner association dues, and real estate taxes, which can easily add up depending on where you live. And it isn't just home improvements that can be costly; repairs can also be costly. Enquire about the upkeep of extras such as swimming pools, high-tech heating and cooling systems, and outbuildings. Finally, make sure you're comparing apples to apples: a low-cost condo with a large fee could be more expensive than a higher-cost condo with smaller fees, and a low-cost home with high taxes may cost you more per month than a higher-cost home with lower taxes.

7. You are not required to purchase a home. There's no law that says you have to buy a house by 35, or ever. Purchasing a home is a major investment, and while it can be profitable, it is not for all. There's a lot to think about, including the housing market, interest rates, and your long-term objectives. You may need more versatility or mobility, or your professional and family plans may be in flux. Try renting as a test drive if you're not sure about a neighborhood; a realtor will assist you with this as well. Even so, you don't have to make the switch: there are healthy rental markets, and in some places, young professionals are opting for rentals rather than home-buying to save money and stay mobile.