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RI Realtor Top Tips For Buying A Home

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Buying a new home is not as easy as going out and buying a home. There are so many things to consider when you do decide to sell your current home and purchase a new home. Or, even as a first-time home buyer. Check our list of the most important areas and decisions to make before and while purchasing a new home. 

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Buying a Home Tip #10: Stop extra household spending 

You’ve decided to sell your current home and purchase a new home. Or, maybe you’re a first-time home buyer. What now? When you are preparing to apply for a mortgage pre-approval, usually financial institutions frown upon large purchases or money being transferred from different accounts. Because of this, you really need to plan accordingly. If you are seriously considering purchasing a new home, we recommend saving any big purchases for after your new home purchase. We also suggest keeping funds where they are for about six months before applying for a mortgage. This includes opening new lines of credit on credit cards and acquiring any new debt.  

Buying a Home Tip #9: Get pre-approved for a home loan before you go shopping for a home

Anyone will tell you, there is a huge difference in a potential home buyer being pre-qualified and a buyer who has a pre-approved mortgage. Getting pre-approved for a mortgage means a lender has looked at your collective financial data and have decided you can afford to buy a new home and with details regarding how much money they will lend you. In the end, when you do find the property of your dreams, this step will save you a lot of time, hassle and energy. There is nothing worse than looking at house you simply cannot afford. Do your research. Learn about junk fees, processing fees or points on a mortgage and make sure there aren’t any additional costs associated to your loan.

rhode island real estateBuying a Home Tip #8: Avoid a property border dispute

It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. Where does your potential new property begin and where does the neighboring property end? Knowing precisely where your property lines are may save you from a potential issue later on. 

Buying a Home Tip # 7: Don’t Try to Time the Market

Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.

Buying a Home Tip # 6: Is bigger really better?

Yup, we all love the big house on the hill, but bigger isn’t always better when it comes to buying a new home.  The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. Sometimes it is best to buy the worst house on the block. This is because the worst house per square foot will trade-in more than the biggest house when you go to resell.

best real estate agent rhode islandBuying a Home Tip #5: Be aware of extra costs

The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association fees. It’s also a really good idea for new homeowners to be prepared to pay for repairs/maintenance and potential property-tax increases. You cannot make a good financial decision if you are not aware of any home extras that are connected to variations in costs. This can include buying a home that uses oil heat when you’ve always used natural gas in the past. What is the price difference? Is the potential new home using a septic tank and if so, how old is it? Make sure you budget for “extra”costs so you’ll be covered and won’t risk losing your new home.

Buying a Home Tip #4: Do not get emotionally invested until it’s yours

Don’t fall for you. Just don’t do it. Never buy a house based on emotions.  If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.

Buying a Home Tip #3: Give Your House a Physical

Would you buy a car without checking under the hood? Of course you wouldn’t. Hire a home inspector. It’ll cost about $200 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for lowering the price of the home. It’s better to spend the money up front on an inspector than to find out later you have to spend a fortune.

best real estate agent rhode islandBuying a Home Tip #2: Negotiate

Your first home purchase should include you considering two primary things: (1) what you can afford (because you don’t want to outbid yourself), and (2) what you really believe the property is worth. From those two points, you can then make a fair and reasonable offer that won’t offend the seller and still may get you your new home. Your home purchase offer really depends on what the market is doing at the time as well and any good realtor can help guide you. You need to look at what other homes have sold for in the neighborhood.

Buying a Home Tip #1: Get the best neighborhood by putting in the time

Many home buyers have become completely frustrated because they were under the impression they found the perfect home, only to later learn that the neighborhood wasn’t for them. Put in the time now or pay for it later. We suggest driving by the house at all hours of the day to see what’s happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with daily. Consider how far the nearest grocery store is. Are there restaurants?  Are the schools good? If you buy a house in a good school district compared to a not so good school district in the same town, the value can be affected as much as 20 percent when you go to resell.

Looking for property in Rhode Island, Massachusetts or Connecticut?

Noonan Lombardi Realtors operates one of the most successful real estate teams for home sales, property management and rentals in Rhode Island, Connecticut and Massachusetts. Our advertising and social media presence are second to none, giving each client the backing of exceptionally experienced realtors waiting to work with you. We use top-of-line resources to make all your property dreams come true and we won’t stop until you’re completely satisfied! Contact us today for the best real estate services in Southern New England.

 

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