Buying your first house doesn’t need to be that hard.
In Bacolod City, where real estate developments are rising left and right, acquiring a property can be very nerve-racking. If you are a first time home buyer, this can be a stressful and time-consuming experience. That’s why you need a guide all throughout the process. This article will help you by simplifying processes in acquiring a property and give you some tips as well in buying your first home.
1. Do your research
Researching can be a boring task for a first time buyer like you but will definitely give you some in depth knowledge especially on the things you need to know.
The first piece of advice that most people take for granted is doing their research. Research can be a boring and tiring task for many, however this is the first thing some first time property buyers should and must do. No one gets to war without getting some weapons first. That’s why it is encouraged to equip yourself first with the things one should know about when acquiring a property. There are the questions that you should answer before going to the next step. And some are just the following:
What type of property that suits your needs?
Will location proximate to business centers matter to you?
Or do you prefer peaceful living?
You personally know your needs, and knowing what type of property suits your lifestyle will be a very wise move. You don’t want to live for many years in a space that you’re be uncomfortable with, do you? Also, you should also consider the amenities that are important to you. There’s a need to research every space if they offer the amenities you need. If it’s not offered, the essential question will be: “Is the location near to a certain amenity? How many minutes of driving or commuting will you need?”
Because at the end of the day, you need to be practical and pragmatic when planning your morning and afternoon commute.
2. Know your budget
Buy the home you can actually afford. Be realistic in setting up a financial goal.
After researching and picking out some ideal locations, now is the best time for some planning and calculating. Before you start looking at a property or loaning in a bank, you need to estimate how much you can afford. One great tip for first time property buyers is that they need to calculate on their own or the do-it-yourself way. This is to set up the pace and the mindset to be realistic for what you can actually afford, some agents will tend to calculate more and will encourage you to buy a costlier house without you knowing that it will definitely hurt your budget.
After computing, you also need to determine how much you have left after spending on the property. That means you should also consider your household’s recurring monthly expenses. By doing that, you’ll be able to avoid debts and other inconveniences in the future. You should know your budget, and you need to work within your desired budget.
3. Find a good real estate agent
Select a competent and compassionate real estate agent to listen to your goals, concerns and worries.
After computing your desired budget in acquiring a property, the next thing you’ll do is find a good real estate agent. How do we identify a good real estate agent?
First, in order to determine if a real estate agent is good, you need to talk to their previous clients. History is an essential information you’ll need in choosing the right real estate agent. If the real estate agent gives a lot of inconveniences to their previous client, then it’s a sign to look for another. It’s your first time to buy a property right? So it has to be hassle-free. You don’t want to commit mistakes along the way.
Second, you need to know if the agent is licensed, has the right credentials and professional awards. This is one way of keeping track of the real estate agent’s attitude towards excellence.
And lastly, choose an experienced one. You need to choose people who are already veterans in the game. You need someone to lead you into a better experience in this process, and choosing an experienced real estate agent is recommended rather than those who are new to the field.
4. Conduct an inspection
Details are crucial things that most first time buyers took for granted.
A popular idiom tells not to judge a book by its cover, and so is true when acquiring a property. Most companies tend to package themselves with their very best, hiding their flaws because of the tight competition. You should conduct an inspection of the property you are about to acquire. Another expense? Maybe yes, but definitely you’ll be spending more if you haven’t seen some issues beforehand.
The inspectors look for defects or malfunctions in the building's structure, systems, and physical components, such as the roof, electrical systems, heating or cooling systems, plumbing, foundation, floor surfaces and paint, windows and doors and the likes. These are the factors that need inspection from a professional inspector especially if you do not have a professional idea regarding the matter.
5. Set up your payment method
You need to be critical in setting up your payment method because this could totally make or break the acquisition.
And now, the time comes where everything is all set up, and all you need to do is to decide on your payment method. Most real estate agents will advise a big down payment. A bigger down payment helps you minimize borrowing. The more you pay in the beginning the less chances you’ll resolve for a loan. Also, you get to pay a less amount monthly if you go big at first. But still, it all depends on the available budget you have. It is also recommended to pour out your bonuses, salary increases, double pays, holiday and birthday gifts and 13th month pay as extra payment if possible. This could be a general factor to lessen the monthly expense you need to pay for the property. However, it will always be a personal decision if you reserve all that for emergency cases. Whatever that suits your lifestyle, just don’t skip monthly payments to avoid inconveniences in the future.
