What You Should Know Before Buying a Home

Are you ready to be a homeowner?

One of the exciting milestones of adulthood is buying your own home. It is proof of your independence and financial stability. Your would-be house is or may be the biggest financial asset you’ll have in your life. As such, time and preparation are important.

If you plan to buy a home in Waukesha this year, here are ten things you should know before signing a contract.

1. Be well acquainted with the neighborhood.

Before you buy the house, get to know the neighborhood well.

Visit it at different times of the day, checking if you’re comfortable with what you see each time. Drive by  in the early morning hours, during late afternoons, lunchtimes or in the evenings checking if you’re comfortable to live with what you see each time. Commute from the house to your work to know if it is something you can deal with on a daily basis.

Determine how close you are to the nearest grocery store, hospital, and other services. Check if they are within reasonable driving distance.

Also, know if there is a school nearby, and what kind of school is it. You may have to sell your house in the future and there are many buyers who are willing to pay more if you belong to a good school district.

2. Bid right.

Your bid should be based on two things. One, what you prequalify for. Two, what you think the property is worth.

Find out the real estate market in the area. If it’s a seller’s market, you would have to match the listing price. If it’s a buyer’s market, you can offer below the listing price, but still at a price reasonable to the seller.

Check the comparables. Know how much similar homes in the area have sold for. That should give you a good basis for your bid.

Ask advice from real estate agent. If you have a buyer’s agent, her terms will be more favorable to you.

3. Require a home inspection.

Know what you’re buying.

Hire a home inspector so you can make an informed decision. That $200 you spend will save you thousands if you buy a house properly inspected by a competent and professional inspector.

The result of that inspection can be used as a bargaining tool should there be any physical defects found in the house.

Remember, this is one of the biggest financial decisions you’ll make.

4. Be practical.

Don’t buy a house because you love the brick fireplace, or the spacious kitchen. Buying a home based only on certain features could potentially  lead to a pretty bad financial decision.

Evaluate  the flaws and strengths of the home. If you think the flaws are minimal and you can live with it, that’s when you decide to buy.

5. Take account of sleeper costs.

If this is your first time to buy a Waukesha home, get your facts ahead of time and check for sleeper costs.

These things will break your bank if you are not prepared. New paint, HOA, utility connections, landscaping, tax increases and utility bills are among the most common sleeper costs.

Budget for your sleeper costs. That way, you don’t have to worry about foreclosure before you even start enjoying the house.

6.  Choose a home size fit for your needs and your neighborhood.

Who doesn’t want to own the biggest and most beautiful house in the block?

But if you consider the possible re-sell potential, the best home will only appeal to a small number of buyers, therefore limiting its chance of selling.

The home’s value is affected by the value of the other homes in the neighborhood, so it’s not a good idea to buy a $500,000 home when the rest of the homes are selling for $300,000.

7. Timing the real estate market is impossible.

Don’t try to buy by timing the housing market. It is constantly fluctuating and changing. You’ll be making a lot of mistakes when you base your house buying decision on the market’s situation.

Buy when you are ready, when you have the means to do it, and you’ve found the perfect house.

8. Find out your property lines.

Get a property survey done so you know your property’s border. This will not only save you from any potential neighbor disputes, it is also the basis of your property tax. Definitely a must-know.

9. Get a pre-approval,

If your eyes are set on a Waukesha house for sale, get a pre-approval before you even bid. Shop around for the best mortgages and interest rates.

Buyers tend to take your offer more seriously when they know you’ve been pre-approved.

10. Don’t move your money three to six months before you purchase.

Lenders will check your credit score, your credentials, your money trails, everything financially related, so don’t make any huge purchase in the six months preceding your loan.

You have to make the lenders see that you are financially credible and reliable.

Several loans and major purchases do not inspire the lender’s confidence.

Preparation is the key for a successful home journey.

For more home selling tips, visit http://www.KristinJohnston.com/.

Are you buying your first home in Waukesha? Call me, Kristin Johnston, at 414-254-6647. Let’s make sure you are well prepared to embark on one of the biggest financial journeys of your life.

**In case you can not view this video here, please click the link below to view What You Should Know Before Buying a Home on my YouTube channel: https://www.youtube.com/watch?v=QbxT0Frt_R8&feature=youtu.be**