Buying a home is one of the biggest steps that you will take in your life. But, not everyone is prepared to do it.
Buying a home in Virginia is 17% more expensive this year than it was in 2020.
So, how do you prepare for that? This is how to buy a new home.
1. Do Your Research
The first thing that you need to do is to research your market. Then, you will get a much better idea of what you are expected to pay for a home.
Lizluke.com does a great job of analyzing market trends here. The link is for the Del Ray neighborhood in Alexandria, Virginia.
The trends indicate that a buyer is expected to pay 102% of the asking price and that a house typically stays on the market for about 13 days.
With this information, you will know that you would have to act fast in this market and probably would not be able to negotiate down.
2. Pick Your Type of Home
What type of home are you looking for? Does it need to be multi-level? Do you want a ranch-style house? How many bedrooms do you have?
Knowing these details is important because then you can start narrowing your choices down.
You might be a young couple that wants to start a family one day. While one-bedroom may be enough for now, it may be wise to get three bedrooms to have room for potential little ones.
3. Establish a Budget
One of the most important things to remember when buying a home is to stick to a budget. Realtors may try to convince you to go slightly over your budget by showing a nicer house in order to receive a bigger commission.
However, a home is likely going to be one of the biggest purchases that you make in your life, and it could take up to 30 years to pay off a mortgage.
Financially, it would not be wise to commit to a $500,000 house when you feel like you can only afford mortgage payments of a $300,000 house. You need to be financially responsible and stick to your guns on budget.
This goes along with knowing what type of home you want. But sometimes, in order to meet your budget requirements, you may need to prioritize.
A house that is closer to your job or your family may not have the backyard you are looking for, a shed or garage for you to do projects in, or that extra bathroom you desire.
You need to come up with your top couple of items that are not negotiable, and ones that you are willing to give up.
5. Home Inspection
Finally, you should insist on a home inspection. Once a house is sold and you sign the dotted line, you bear the responsibility for any maintenance the house may need.
It is best to require a home inspection as a condition for your offer, that way you know exactly what you are getting into with said house.
Learn More About Buying a Home
These are just five of the things you need to remember when buying a home, but there is even more to know before making such a big decision. Want to find out what those tips are?
Read our LifeStyle and Home Improvement articles for more details.