When everyone is migrating towards the suburbs, a decision to buy in the city center can be a smart one for several reasons. As many have left the busy central area in order to get away from the crowds in the era of the pandemic, the market momentarily became ideal for buyers.
With a bigger selection thanks to this trend, it is hard to deny that many first-time home-buyers may be facing an opportunity of a lifetime. The current buyer’s market leaves you more room for negotiation and possibly a better price than you would imagine for a downtown property—whether you are planning on building your life here or you are thinking smartly about the future and are purchasing with the intent of investment.
Picking the right house and being prepared for the often daunting buying process is incredibly important regardless of your goal—even more so for someone who has little experience in this scene. To help you out, here’s a house buying checklist that will help you snag that property in the city center with no problem!
Mind the location
In real estate, you have probably already heard the phrase “location, location, location.” The importance of the location of the property cannot be emphasized enough, and this remains valid even when talking about the city center. However, just what does “good location” mean in terms of property? Watch out for the following factors:
- The accessibility of the neighborhood – If you were to take public transport, how difficult would it be to get to your property?
- The proximity and selection of amenities – Depending on your and your family’s needs, are there appropriate amenities nearby?
- Future development – Look out for signs that the neighborhood is in development since it will be beneficial both for your lifestyle and for the future value of your property.
- Downsides like major, noisy roads and commercial properties that may draw a lot of traffic – The proximity of such drawbacks can make it hard to resell your property.
- The safety and security of the neighborhood – Check crime rates and determine how safe the area is.
Determine what you can afford
The next step will be determining just how much you can afford. A variety of factors will need to be taken into account here:
- Your financing options – At this point, you should explore your financing options. Learn about how much you will be able to borrow (by speaking to your bank or seeking out the services of a mortgage broker) and try to improve your credit score if the situation isn’t ideal. Get pre-approved for a mortgage to make the process smoother later on. Look into grants that are offered to first-time home-buyers.
- Your savings – If you have some savings, using them for a larger down payment is a good idea.
- Future expenses – Besides the current expenses, you should also mind the future expenses the property’s upkeep will involve so you don’t end up house-poor.
- Hidden fees – Remember that the price of a property is far from all the expenses that will need to be paid. You need to have a sizeable margin for the hidden fees involved in the transaction.
Employ the help of professionals
It should go without saying that such a huge endeavor as purchasing a property, especially with no prior experience, should not be DIY-ed. There is a lot of paperwork involved in the process and seeking out the help of professionals will not only ensure that everything is done right but will also save you from a notable amount of stress. But who should you be seeking out?
- A real estate broker – If you are still looking for the right property, a real estate broker is who will find properties for you that fulfill your criteria. They will know better what’s suitable and they might also have access to deals you wouldn’t know about otherwise.
- A conveyancer or solicitor – If you need help with the purchase process itself, this is the person to look for. They will guide you through the contract, paying attention to the fine print, and once the time for the transaction comes, they will orchestrate the process without you having to do much.
- A property investment agent – If you’re buying with the intention of reselling, you may want to consult property investment agents to make sure that your investment will pay off.
Inspect and learn about the property
Before any purchase, certain inspections are in place. However, we are not only talking about the home inspections that take place shortly before purchase. You should keep your eyes peeled and do your own homework during the shortlisting process.
- Learn what to look out for during home tours – If you can visit the property in person, be sure to check cabinets, open curtains, assess views and the amount of light the place gets, check the outdoor space, etc.
- Inform yourself about HOAs – You should also take some time to thoroughly investigate any HOA or strata scheme that may be applicable to the property you have picked out. Are their policies suitable for your lifestyle? How much are their fees?
- Don’t skip crucial inspections.
Learn about the buying process
Finally, when you have your heart set on a property, it’s time to make a move. Naturally, your conveyancer will be able to guide you through what’s to follow, but it’s still a good idea to have some basic knowledge about the buying process. Once you’re sure you want a property, you will make an offer. You may need to be ready to negotiate if there are multiple bidders. Once the price has been decided, though, it’s time to put things on paper and make a formal offer. After this point on, you will apply for the mortgage you already have pre-approved, get the final inspections over with, get the property appraised and, finally, close the deal.
Purchasing one’s first home is a notable milestone in anyone’s life. It’s also a major financial investment that must not be rushed or done on a whim. The whole process can seem extremely daunting and complicated to first-time buyers, but you mustn’t let this set you back or cause you to end up in a less than favorable deal. Hopefully, this guide will be helpful in your journey to your first home.
