Five tips for first-time home buyers
- 5 March 2018
Buying a new home is an aspiration for all, and a great feeling too, but a plethora of options can initially be confusing. In this article, we list a few tips that can serve as a checklist to make the decision-making process easier.
1. Draw up a budget that you can stick to!
Many a time, we tend to approach the home buying process with unrealistic budgets and end up spending more than what we had initially planned for. Sometimes, a first-time home buyer is sure of the kind of home s/he wants but is unsure of the price range that s/he can afford. Our advice:
Before you set out to identify your dream home, it is essential to iron out a few basic questions – What is the real estate scene in India, or in the city/locality/neighborhood you are considering buying a home in? What is your budget? Will you be able to extend it if required? How will you do so? You can use online mortgage calculators, several of which are available, to plan better.
Seek help from your bank and arrive at a figure that you are comfortable with before exploring home/residential project options. Your agent should help you understand your loan terms and conditions, initial deposit/payment required and the various services provided by the home loan provider.
2. Be clear about the non-negotiables:
Before you seriously start looking out for a new home, consider some crucial aspects– the lifestyle you lead, your aspirations and values. This will help you classify various project parameters as either negotiable or non-negotiable – the location of the property, area, amenities, etc. Then you can go through your list and alter it as per your priorities
3. Compare homes/apartments for pricing:
The home buyer must ideally compare prices before buying. Visit the property before you decide to move in. Get a sense of the vicinity around the property. Ask yourself if this is the vicinity you see yourself living in, in the long term, or is there something else that you are looking for?
The closing costs include payments done for overlooking the buyer-seller agreement and home appraiser. This has to be paid by the buyer. The realtor’s commission, on the other hand, is taken care of by the seller. (Phew!)
Buying a property in India, especially in the metropolitan cities, requires extensive research and evaluation. However, a few simple steps, when factored into the decision-making process, can help you steer clear of common errors while allowing financial flexibility and freedom!