Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Property
House Buying Tips – Buying a New Home
Looking for real estate can be a daunting task for even the most seasoned home hunter. Rest assured though, it doesn't have to be as difficult as it sometimes seems. Putting to good use a few handy tips will soon put you in the position of a home owner: investing your money instead of paying rent to someone else.
Remember that you can have a 5 bedroom mansion, but put it in the slums and your house is worth nothing. Location is everything. Make sure that you balance your requirements in a home, with having a house in the right place. Keep in mind your property's proximity to shops, bus routes, schools etc.
Before you even start house hunting, set your budget and be determined to stick to it. Most financial consultants will recommend that you plan to have a monthly payment of no more than 20 or 30% of your monthly income. Perhaps you might be considering putting aside things like eating and clothing in preference to your dream seaside mansion, but remember the importance of continuing your saving habits for your retirement etc. Set a reasonable, wise and practical budget and stick to it.
Whilst you're working out your budget, include some thoughts on what you want in a home. What's important to you? Trust your gut too. If you're not 100% happy about the house that you're looking at, trust those feelings. When you see the right house, you'll know it. Be prepared when you meet with the realtor about the home. Ask questions. Ask lots of questions. Preparation beforehand as well as experience will help you not only to ask the right questions, but also to differentiate between a smooth talking realtor and a straight talking realtor.
When you get that feeling that you've found your home don't sign anything just yet. Mull it over for a while. Go back a few days later and look at it again. Sleep on it. Make sure that you're not compromising on any of your requirements because you spotted the Jacuzzi in the main bedroom!
Think carefully and perhaps get some 3rd party comments on the home and then decide on an offer to make. Ask around at other agencies to see what homes in the area are selling for. This'll give you a good idea of what others feel about buying in this area and also what the potential resale of your property could be.
Remember that you won't always have someone who's on your side, so to speak. The agent that you deal with will be the seller's agent and he's interested in his commission. So keep that mind as you go through dealings with the agent.
All said and done, buying a house doesn't have to be a nightmare. Proper planning and patience will be rewarded.
