Buying a house can be both exciting and intimidating. The process of house-hunting is a long, complex process, especially for first-time buyers. Not to worry. LUXE Forbes Global Properties is here to help!
Our step-by-step guide details everything you need to know before you buy a house. We’ll cover every aspect of the process from finances to personal taste, making sure you’re ready to begin your house hunting journey!
1.Determine Your Budget
Finances are a very important part of buying a home. Before everything else, you’ll need to determine your budget. Depending on your preferences, this amount may change. A property’s location, size, and facilities factor into its price. The state of the market also affects the value of a home. Look through properties listed online that are similar to what you’re looking for: you’ll be able to get a good grasp of their current prices.
The experts at LUXE Forbes Global Properties advise spending no more than 30% of your monthly income on housing costs, which include factors like taxes, interest, principal, and insurance. You’ll also have to save for down payments and closing fees. With a loan, you can expect a downpayment of at least 3% of the home’s value. Your real estate agent can help you understand loans, mortgages, down payments, and closing fees: be sure to consult with them about these financial aspects. You may also consult with your local bank or financial advisor to better understand the financial side of house hunting.
LUXE Forbes Global Properties has a dedicated finance team that can help you with understanding the financial aspects of buying a house.
2. Find A Real Estate Agent
A good real estate agent can ease the process of finding a home. By working with an agent, you’ll have an experienced guide: they can clarify market trends, lead you to good deals and help handle housing contracts. These experienced professionals can also guide you through choosing a home: more often than not, they’ll find you the perfect property that’s suited to your needs.
Choosing not to work with an agent can be risky. Their professional knowledge on all things real estate is invaluable: without it, you’ll be at greater risk of bad deals. The right real estate agent can also be invaluable when it comes to negotiating the price of your chosen property.
3. Choose a Property
Once you’ve settled your finances, you can begin looking for your new home. For ease, you can consider browsing available properties online: many websites allow you to look at properties from the convenience of your device. With LUXE Forbes Global Properties, you can look through our wide range of listings to find your perfect home.
When choosing a property, you’ll need to consider some factors. Decide on the number of bedrooms and bathrooms you’d like. You’ll also have to think of the property’s size and the neighborhood it’s in. If you’re commuting to work, you may want to choose a location that’s convenient for you. Additionally, you might want to think of the type of residential property you’d like to buy: would you prefer a single-family home or a condominium? Look through as many properties as you’d like until you find a home to your liking.
4. Inspect and Explore Your Choices
Once you’ve narrowed down your choices, it’s advisable to do an in-person inspection. It’ll identify any parts of the home that need repair, but an inspection will also allow you to explore the area. If you find any aspects of the home you don’t like, bring it up with your real estate agent: any damage or dissatisfaction can help in negotiations. Be sure to ask as many questions about the property as possible. Some important questions can include:
- Why is the property being sold?
- What items are included in the sale?
- Is the area prone to flooding and natural disasters?
- How is the neighborhood?
- Is there anything about the property I should be aware of?
Asking questions about the home can give you a clearer picture of the property, ultimately affecting your final decision.
5. Make an Offer for the Property
In this step of the process, you’ll need the help of your real estate agent. Your agent can look through the market and determine a fair price for the property, depending on the sales of houses in the neighborhood.
You can negotiate the price of the property depending on some factors. If there haven’t been a lot of sales in the area or if the house has been on the market for a long time, you can work with the seller to find a better price.
If it’s in your interest, you may want to discuss contingencies with your real estate agent. Contingencies can be included in your offer, which dictates that you can break the contract if certain conditions are not met. Some contingencies can include:
- Home Sale Contingency
If you’re planning to purchase a new home by selling your previous property, a home sale contingency is in your best interest. This allows you to have a certain amount of time to sell your property to obtain the necessary funds.
- Inspection Contingency
This type of contingency allows you to negotiate your offer depending on the condition of the property. If the needed repairs are too extensive, or if there were hidden damages to the property, you’ll be able to withdraw your offer.
- Mortgage Contingency
In case you’re unable to secure a mortgage to pay for your property, this kind of contingency allows you to back out if you’re unable to get funding.
After considering any contingencies, you need to pay for an Escrow Deposit. This money shows the seller that you’re serious about your purchase, which can help seal the deal quicker. Typically, you’ll want to offer anywhere between 1%-3% of the home’s price. The funds will be held in a specific escrow account and are added to your down payment and closing costs.
If you back out of a deal, the seller is allowed to keep your deposit. Contingencies ensure that you won’t have to lose money if you’re unsatisfied with the property you’re looking to buy.
6. Close on Your New Home
Once you’ve discussed payments and fully inspected your new home, you’ll be able to begin the final steps of the process of buying a house.
During the closing process, the seller will transfer the property title to you. A Closing Disclosure will also be given to you, which you should look over with your real estate agent to make sure everything is satisfactory. The transfer of titles and reviewing of closing disclosures will be overseen by a closing agent, who will be present to ensure that everything is in order.
You’ll have to sign legal documents in the closing process. These include the Closing Disclosure, Deed of Trust, Certificate of Occupancy, and any financial documents that you need. Aside from providing your signature, you’ll also need to pay closing costs, which include your down payment, appraisal, survey, and title search fees.
After everything is processed, you’ll be one step closer to living in your brand new home!
Find Your New Home With LUXE
LUXE Forbes Global Properties aims to provide you with the best real estate experience possible. We’ll find the perfect home for you, matching your budget and personal tastes to one of our premium listings. Whether you’re looking for a modern home in the city or a cottage in the country, LUXE will help you find your perfect home.
When you buy a house with LUXE Forbes Global Properties, we’ll also be able to help you move into your new home.
Choose LUXE to be your partner in your real estate journey. We’ll help you every step of the way, from handling home financing to choosing the perfect property for you. Contact us now to begin your house hunting journey!