Buying your first home can be quite exciting but stressful at the same time. The idea of finally having your own home is something almost everybody dreams about. However, nobody tells you how hard it is to go and buy a new home. There are papers to sign, people to talk to, finances to be sorted out. Oh and the competition. This is where most first home buyers lose their sanity. When they find their dream home only to be crushed by another party.
(Source: Flickr: alachuacounty)
Let’s be clear. Competition is expected when you are buying homes. In fact, you should be wondering why you don’t have competition in a property you are eyeing. Perhaps they found a problem you haven’t realized yet?
So what do you do about competition? It’s not like you can completely remove them from the picture, right? Well, you can always keep yourself one step ahead.
Keeping A Leg Up Against the Competition
So let’s say we are in the market for buying our first home, but we are afraid of failing because of the competition. After all, it’s all about the money in real estate, right? Not quite.
Real estate is not as easy as having the most money. While having a fat wallet helps, you can still keep other bidders at bay when you follow these tips we have for first home buyers.
Find out how much you can borrow – A lot of first time home buyers make the mistake of not checking out first-hand how much they can budget for a house before starting to look for them. As a result, they end up facing a lot of competition (and losing) because they can’t keep up. Getting a pre-approval can work in your favor especially when the vendor wants a quick sale.
Don’t forget to save – This might be a bit out of topic here, but if you are planning on buying your first home then you should have started on your savings a long time ago. Just because you have a pre-approved home loan doesn’t mean you can get that extra frappe from Starbucks. Get a savings and budgeting app to help you keep track of where and how much you are spending. The extra money you save can be put on your savings that will help you when looking for your first home.
(Source: Flickr: 68751915@N05)
Learn to prioritise – One mistake most first time home owners make is that they don’t know what they want and they are all over the place. Make sure you learn to prioritise the things you need for your new home. Do you want multiple bathrooms? Is a patio necessary? Are three floors too much? How much is your total budget? Make sure you have a good idea of what you want and tell your real estate agent about it. This way, they can easily find a great property that fits your specific needs right away.
Shop around – Just because you think you found the perfect house doesn’t mean there won’t be another one like it in the market. Take your time and shop around. Most real estate agents will tell you that majority of the people looking for homes don’t get the good news on their first bid. So look around and find homes that fit your needs. Checking out multiple properties will also help you get a good idea of the amount you need for the home you want because similar properties will be in the same price bracket.
Don’t force yourself to bid – Hey! Just because you have the money today doesn’t mean you need to have the house tomorrow. Learn to be patient. We aren’t running out of houses anytime soon. In fact, more houses will be available for you to check out in a few weeks. Tell yourself over and over again that you “don’t have to buy this home” to help you calm your nerves.
If you are a first home buyer and need assistance with getting a home loan, contact us on 1300 841 841, firstname.lastname@example.org, or click here to get started on with an assessment (this won’t affect your credit score).
Author: Lean Airo Loking