It’s natural to feel a little apprehensive when making a major purchase, but home buying shouldn’t scare you out of your wits. Know the rules! – Owolabi Olatunji, CEO Hutbay.
Buyers’ biggest real estate fears most times hold them back from buying — not just for a season, but throughout the year. And rightfully so, as buying a home is usually the largest purchase a person ever makes. If you’re one of these people who is hesitant, take heart – there are simple steps you can take to overcome your fears and become confident that you will make a sound purchase. Here are the top five reasons you may be holding off on purchasing a home of your dream and how to overcome these hurdles.
1. Loss in Property Value
Homes can decline in value, even without a disaster. Neighbourhoods can gradually decline, newly-built homes can make older neighbourhoods look less attractive, or an unpleasant development (prison, landfill, highway, etc.) could be built nearby. A poor or average economy can also keep home values down. Even savvy home buyers can’t always predict what will happen to home prices. But you can take precautions, like buying in a low-crime area where the homes and surroundings are well-kept, chiefly owner-occupied and with high-quality schools nearby. Also, you can contact the state government to ask about future development plans in the area you want to buy.
2. Overwhelming Maintenance Costs
All homes have upkeep costs, and many homes have very large maintenance bills. If you become a homeowner, you won’t be able to avoid these costs. However, there are numerous things you can do to mitigate and prepare for them:
• Buy a home that has been well-maintained.
• Buy a new home (though new homes sometimes have undiscovered defects).
• Buy a home that has recently had major components upgraded or replaced (e.g., new roof, new water heater, new plumbing, new electrical)
• Regularly maintain your home to prevent small problems from becoming major repairs.
Set aside for home maintenance and emergency fund and add to it every month. Also, to avoid buying a money pit, you should also have a home inspection before you buy.
3. Hidden House Foundation Damages
Most homes will need routine maintenance, and a good inspector will point this out. – Zillow
An intelligent buyer will always plan for routine maintenance, fixing and repairs. However, buying a house with a cracked or faulty foundation can lead one into a lifetime regret. Below are your key points to avoid the unknown:
• Pay a professional to inspect before buying
• Consult Verified Estate Agents and Realtors
• Consult Reputable Real Estate Market Place
• Take advice of the above as a golden rule
There exist many online listing agencies today start by contracting the purchase to one with reputation among them or request for their verified agents or developers. Listing agencies have profile of developers and agents and can guide in your attempt to buy. Don’t let your fears get the best of you. Ask the right people the right questions and you will get the right answers.
4. Unable To Afford Your Mortgage Payment
Many people wonder how they will afford their mortgage if they lose their job. They also might see that the mortgage payment required to afford a home in their area exceeds what they currently pay in rent. To deal with potential job loss, make sure to have a substantial emergency fund set aside. You can use this money to continue paying the mortgage if you lose your job. Also, though you may experience unpleasant collection activities, your home isn’t likely to be taken away from you the first time you miss a mortgage payment. Before you take on a mortgage, set up a budget so you know what your existing expenses are and how much money you take home every month. Also, think about new expenses that will come with home ownership, like water and waste disposal bills.
5. Fear to Lose the House
One thing that should never be bought without a careful thought in this part of the world is a property. If you find your dream home, you may have to move fast. Particularly in aggressive markets, lots of properties sell before the first open house to quick acting and super-motivated buyers. If you see a new listing hit the market, be sure to let your professional real estate agent know right away. Try to make an appointment to see the home as soon as possible. Also, find out immediately how the seller’s agent plans to handle any offers received. Sometimes they will take the first offer, especially if it’s a good one. If you are travelling or busy with work, be sure not to miss out on your dream home. Be in constant contact with your agent, and flag potential homes that look like a great fit.
At Hutbay, we can help! We will get your property sold fast! We will connect you to the right network and open you up to the industry. Information is power and all you need is to leverage on the right information at the right time, in the right environment using the right technology.