If you think about purchasing a house or an apartment and need advice, then here are a few useful tips from experienced real estate agents and buyers.
Stick to your budget
If you are a first-time buyer, don’t underestimate this step. Yes, before you start visiting places, you absolutely need to sit down and calculate your budget. No matter which form of payment you choose – cash or mortgage loan – you should count every penny of yours and know exactly how much you will spend in order not to get into financial trouble. Sometimes it may be financially wiser to buy with a mortgage even if you have enough cash: this way you will have more money to spend on the house’s renewal and may even invest the rest of it in the stock market to get extra income.
Check your credit rating – if you are not planning to pay in cash – before you meet the lender. No surprises are welcome here. Be ready to disclose your income and savings accounts to the lender so that your creditworthiness could be assessed. If you are an EU citizen, you can theoretically obtain a loan in every country-member and your loan will be secured against your newly obtained property. Attention, if you buy with a mortgage loan, you will still have to pay a part of the cost in cash – down payment and closing costs which are equal to 12-13% of the price.
It’s all about location
The price of your future home depends greatly on where it is located. A smaller house or an apartment located in a prestigious district is always a better choice, than a bigger property in the suburbs: if you need to resell it fast someday, it won’t take long and you are likely to sell it at a high price. But don’t regard the financial aspect solely, if you are looking for a place to live in and not investing into real estate. It’s the second important thing to lay down an approximate description of what kind of place you are looking for. If you want a garden, maybe some land and a spacious house for a big family, then it’s wiser to look in the countryside – there may be great options not far from the city!
Is it that great?
Be sure to check if the property needs any substantial repairs before you sign the agreement of purchase. You may call specialists to assess the state of the house, this way you will know in advance what to expect. And you may negotiate a lower price with the seller too!
Beware of urgent property sales
Yes, you may find your Perfect Home among those, and even manage to save some money, but there may also be troublesome houses, which require major repairs like roof replacement or fixing a cracked foundation. And chances are, you will not learn about those issues until you move in.
Can I maintain it?
A house with vaulted ceiling and a huge pool? Be ready to pay more for the maintenance and for heating in winter! We do not mean to make you pessimistic, but looking beyond the actual price of the place and giving it a second thought is a useful habit.
Won’t it be too big for us later?
It may become a little deserted after your grown up children leave the place, you may want a larger garden when you grow older and retire, you may not need the second bathroom after your children grow up buy their own flats … Focus on what you need now and what kind of life you are leading. You can always resell your property and get a more suitable one later, the only thing which is important is that you feel comfortable in it now.
Follow your heart
Some agents say, that we form our impression during the first minute of our being inside. Is it a happy place? Do you see yourself in it? Do you feel enthusiastic about redecorating it and moving in? But before making the final decision, sleep on it overnight. If you wake up next morning and the answers are still positive and moreover you feel, it would be heartbreaking for you to see other people buy the place, then it’s yours. Heart never lies!