First time buyers can suddenly be overwhelmed with many questions about the home buying process. The first purchase usually tends to be the hardest because it seems like there are so many things you need to learn to make the purchase. Here are some of the most basic questions first-time homebuyers ask and the simple, practical answers to these questions.
1. Where do I get the money to buy the house? – This question is probably one of the most important in the minds of home buyers. Money is one of the most important considerations when buying a home, and in fact, many people are so intimidated by the money factor that they end up not buying a home because they think they can’t afford it. Typically, you’ll need to get money for a down payment (which is typically 20-30% of the price of the house) and borrow the rest from lenders. Your first concern would be to save enough for a down payment while also working to improve your credit score.
2. I see the prices of houses on the market. Can I ask sellers to lower the price more? – Yeah, that’s always an option. Negotiating with sellers the price of the property is part of the process. Essentially, you make an offer, and if the seller decides to do so, he can either accept your offer or make a counter offer. The real problem is figuring out how much he will offer for the property. There really isn’t a standard way to answer this. The best way to do this is to research home prices in the area where you will be buying a home yourself. Look at the list price and look at the actual sale price. You can request this information from your real estate broker. Look for houses that are similar to the house you want to buy and that are located in the same neighborhood. You’ll probably find out how much to offer that way. Take into account other essential factors, such as how long the homeowners have been waiting to sell the home, whether any repairs are needed on the home, and the like.
3. Do I really need a real estate broker? – Most real estate brokers work for sellers, although there are some who also work for buyers. Since real estate agents earn a commission when they sell you a home, you should expect them to go out of their way to sell you a home. Of course, you can buy a house without a real estate broker, although it will take more effort to take care of the documents and learn the buying process from both you and the seller. Stereotypes about real estate agents don’t always apply to everyone. You will find real estate agents who are really very helpful. You just have to make an effort to find a good one. You also need to remember that even if you are working with a good and friendly real estate broker, you still need to remember that he/she is working for the seller. Refrain from giving unnecessary information to protect your interest.
4. How do I know that I am going to get a good house? – The best way to do this is to hire a home inspector. A professional inspector will have a checklist of what to check and will systematically examine the home for things that may make it unsafe or reduce its value. Working with a professional inspector is important because you don’t want to be left with a crooked or toxic moldy or bug and parasite infested home.
There are probably many more questions that need more answers. The best way to do this is to be proactive about them and seek help from people who are dedicated to helping other people find and pay for a home.
