Buying your first home is no easy job. There are a plethora of things to deliberate, and it is natural to feel overwhelmed. After all, buying a home will have a significant impact on your future.
If you are wondering what your top considerations should be as you search for your new home we asked leading Penticton real estate expert Gil Szabo to share his expertise. Here is what he had to say:
First consider Buying Related and Operational Costs
The most apparent costs that first-time buyers know about are the down payment and closing costs. However, many buyers overlook buying related expenses and operational costs when budgeting. First-time buyers should be aware that the home buying process involves other costs than home inspection fees, such as escrow fees, survey fees and possibly others. It would be wise to make a list of these potential costs beforehand and include information like expected time of payment. Make sure you know all these costs upfront.
Furthermore, keep in mind the operational costs that you will need to run and manage your new property. It won’t serve you to buy a property you can’t afford to maintain. Additional costs like utility costs, Home Owner Association fees, and costs of the upkeep of the property such as plumbing, cleaning, and gardening need to be added to the budget to avoid any unpleasant surprises later on.
Consider Location And Do Your Own Research:
Remember the mantra “Location, location, location” because it is an integral part of the decision. You must remember that the location of your property is the one thing you cannot change. Start by doing some practical research into the areas that you have in mind. Make a checklist of the amenities you want in your ideal location, and check if your potential neighborhood offers what you are looking for. Important things to look for are crime rates, the quality of schools in the district, consider the commute to and from work. All these considerations will help you narrow down the areas you can tour and get a feel of the location before looking at the house listings.
Consider the Work Required
It is easy to be carried away into thinking that you can take on a fixer-upper property for the lower price. It is a common first-time homebuyer mistake to bite off more than you can chew. Therefore, carefully consider how much work you are willing to take on. And consider carefully whether or not the property pass inspection the way it is. Consider each property you look at on a case-by-case basis and evaluate the cost of repairs required. Be aware that repairs can get expensive fast.
Consider the Resale Value
Statistcs say it is more than likely in a few years you will consider moving to a different neighbourhood or a different city. So you have to factor in the resale value of your home as you buy it. On average, most first-time homebuyers start thinking about moving to a new home after five years. The resale value of your home relies heavily on its location. Understandably, buyers are willing to pay more for homes are located in a popular area with desireable amenities close by.
Consider the Emotional Process
For many first-time buyers the process of buying a property can be an emotional roller coaster ride full of ups and downs. Searching for the right house can be a stressful process that requires patience and persistence. Be prepared for the waves of emotions during the negotiation phases and the possibility of disappointment and heartbreak of losing your dream house. A highly experienced and professional realtor can be of great help at this time in reducing the stress.
The journey of finding and buying your first residential home will be easier when you go in with realistic expectations, the right information and a seasoned professional by your side. Remember that a number of factors can affect the purchase, so your safest bet is to go in prepared.