Buying a home is one of the most important decisions in anyone’s life; it is a major financial move and can have long-term implications. Selecting a property is an arduous process, involving decisions about location, size, condition and other factors. According to the National Association of Realtors®, the number of existing-home sales is projected to rise 5.6 percent in 2016. In order to make the home-buying process a smooth one, it is important to understand the different factors influencing home-buying decisions.
1. Cost: It is important to determine the amount that can be comfortably spent on a property before going out to search for a house. Affordability is not only determined by the price of the home, but also what kind of down payment can be made and if the buyer qualifies for a loan. Mortgage lenders will assess a borrower’s financial standing in order to determine the debt-to-income ratio and competency in repaying a loan. Buyers should also carefully consider all associated costs of owning a house such as property taxes, insurance and maintenance fees.
2. Neighborhood and Community: Buyers should research local communities, towns and neighborhoods for the availability of schools, transportation and safety. Property values tend to appreciate faster if the surrounding area is well-developed and has good infrastructure. Buyers should make sure the local community is suitable for their lifestyle and fits their expectations.
3. Location and style: Buyers must decide on the ideal area and size of the house according to their family needs, lifestyle and budget. If a buyer desires to live in a specific location like a city centre then, the size of the house will be affected by the budget. The floor plans, ventilation and energy efficiency features of the house should also be considered.
4. Legal expertise: Many buyers choose to engage real estate lawyers to ensure they are well-informed and protected. An experienced real estate attorney can review documents such as purchase contracts, disclosure statements and title reports in order to ensure buyers’ interests are safeguarded.
5. Insurance and Taxes: Taxes and insurance are factors that will affect the overall cost of owning a house. Buyers should have an understanding of local taxes, homeowners insurance and any other related costs associated with home ownership.
6. Home Inspection: Having a professional home inspector inspect the property before buying is a crucial step to take. Home inspections can discover any major damages or potential risks that may exist in the home such as water or mold damage. Inspectors will also check the heating, cooling and plumbing systems.
Taking the time to consider all of the factors involved in buying a house can help ensure that a home-buyer finds the perfect house suited perfectly to their needs. Doing the necessary research, becoming educated and getting the right help along the way is the key to making a smooth and informed decision.