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The Managing Director of Buying Perth Real Estate, Clive Elliott, discusses who is ideally suited to the services of a buying agent, how a buying agency operates, and the cost of engaging us to help you.

Author's Name

Clive Elliott

Phone

0862150200

Web Site

https://buyingperthrealestate.com

Email

CLICK HERE

Buying your first home is both a daunting task and a big milestone in anyone’s life. It’s not always a smooth journey, especially if it’s your first time. You need to prepare and equip yourself with enough knowledge about the home buying process so you can avoid any problems that you might encounter along the way.

Consider asking yourself these questions before you take the plunge.

1. Why am I buying a home?
You need to figure out your purpose for buying a house and to make sure that it’s a realistic reason to avoid any regrets in the future. Many young homebuyers regret purchasing their first homes because they later realized that the mortgage payments were too high, they were unaware of the closing costs, or they were unprepared for the home maintenance.

Make sure that you think long-term when buying a home. Consider all the financial factors and make sure that you are prepared to pay your mortgage, settlement fees, and home maintenance fees even if sudden changes in your life take place.

2. What do I want in a home?
Aside from figuring out your purpose for buying a home, you need to decide on the features that you need. Are you looking for a single-family home? Do you absolutely need to have a garage or a laundry room? Are outdoor living spaces important for you?

Decide on your non-negotiables before looking for listings. Again, make sure that you are thinking long-term so that the house you buy will still be comfortable for you to live in for the years to come.

3. How is my current credit rating?
When buying a home, one of the most important things that you need to make sure of is your credit rating. Having a good credit rating can be the difference between having the ability to buy a home and not. If you don’t have a good credit rating, your might find it more difficult to find a loan that can finance your home.

4. How much is my savings?
You should have a considerable amount of savings before you purchase a home. Aside from saving up for the deposit, you also need to consider unexpected expenses such as emergency home repairs and broken appliances. Aside from home expenses, consider other emergencies such as losing a job, getting married, having a child, or getting in an accident. Before you buy a house, make sure that you’ll have enough emergency savings left to get you through surprise expenses.

5. How much can you afford to pay?
Set a budget. Decide on how much deposit you can afford to pay and how much of the monthly mortgage you can shoulder without straining your finances. Consider other day-to-day expenses, any current debts, and your savings goals.

If you are paying more than you can, you are risking the possibility of losing your home. Don’t force yourself to buy a house that you can’t afford. Consider taking the time to prepare and save up more money so you can peacefully buy a house without the risk of straining your finances.

6. How will you finance the loan?
Determine the length of the loan you plan to avail. If you choose a short-term loan, you’ll be able to pay it all off after a few years only but that means you need to pay a bigger amount every month. If you choose a loan that can be paid within a longer period, the monthly payment will be lower but the interest rate may be higher and you will end up paying more money in total.

To identify the best financing option for you, ask yourself how you will finance the loan. If you have a lot of extra money per month, it might be better to get a short-term loan. If you are on a strict monthly budget, it would be best to opt for a lower monthly fee arrangement. Discuss your financial situation with your buyer’s agent so he/she can help you decide on the financing option that’s best for you.

7. Have I considered all costs associated with purchasing a home?
The property price isn’t just the only cost that you need to consider when purchasing a home. There are many additional costs that come when purchasing a home such as settlement costs, property taxes, homeowner’s insurance, settlement fees, association fees, utilities, home maintenance fees, structural reports, and others. Make sure that you know about all these costs and take these into consideration when planning your finances.

8. How long do I plan to stay in my new home?
Purchasing a home is a long-term investment. If you plan to live in a home for a few years only, buying won’t be a good option for you. It might be more practical for you to just rent.When buying a home, it is ideal to stay in your home at least five to seven years before reselling the home. To determine how long you plan to stay in your new home, think about your plans for the next five years. Will you be changing jobs? Are you going to start a family soon?

9. Do I feel secure about my current job?
Aside from the additional costs that come with purchasing a home, being a homeowner also entails some expenses. In maintaining your home, you will eventually need to have some repairs and upgrades. Make sure that you have a stable income that will be able to finance all the expenses associated with owning a home.

10. Are you ready for all the responsibilities of being a homeowner?
If you’re used to renting, your landlord might have always been the one who took care of all issues related to the property. Once you have your own home, you will be your own landlord. You’ll need to take care of any issues that may arise - broken pipes, leaks, or broken appliances. Ask yourself if you are ready to take on the responsibilities of being a homeowner.

11. Do you have an experienced buyer’s agent?
The process of buying a home can be overwhelming. From planning, actually looking for the perfect home, and negotiating the deal, it would be better if you have someone who can help and guide you throughout the whole process. A credible buyer’s agent can make things go smoothly. They are more knowledgeable about the real estate market and will be able to come up with the best recommendations. They can help you negotiate with the seller and give you the best deal based on your needs and preference.