Buying a house in this day and age is a tedious and long-drawn process. You need to consider several factors, do extensive research on multiple factors, be aware and stay away from all the scams, and then narrow down a search to a few houses. But the process does not end here. While all this sounds like a huge task, you do not know where to start or end. Do not worry. We have got a complete guide that breaks everything down into small segments.
In this article, we take you through all the steps involved in buying a house. We can talk about the different kinds of expenses, how to find a rough estimate, how to stay away from scams, and a whole lot more. So, without further ado, let us get to it right away.
List Down Your Requirements
You will likely have a long list of requirements based on your family and their needs. First, you must consider what type of house you want to buy: Should it be an apartment complex, should it be a duplex, should it be a penthouse, a bungalow, a small villa, or anything else? Well, whatever your choice is, know that the price for each of these differ.
Once you have this sorted, you need to try to find the locality into which you want to move into. Since different neighborhoods vary in their atmosphere, you must choose one that is conducive to your needs and aligns with your preferences. The locality also plays a massive role in the price of the house.
After your locality and the type of house are decided, you can start looking at the various needs and amenities of the house. You would like a specific number of rooms based on the number of family members. You may need to know if the home is pet-friendly. Besides this, you will look for basic things such as cupboards, attic space, closets, and more. Once you have made a list of the necessities, you will try to see what luxuries you can get there. In this list, you can include things such as pool areas, backyards, and a whole lot more.
Overall, these are the initial steps to take before you begin any house-hunting process. Although some parts feel trivial, you’ll soon realize how critical they are and how precise you need to be with the items you add to the list. After all, you don’t want to miss out on anything. Once you finish the list, you move to the next most important step in the process.
Calculate the Complete Budget
When it comes to buying a house, it isn’t just about the payment you make for the house. You must also include the taxes you’ll pay. Usually, the taxes differ based on your payment. You also have to subscribe to insurance and pay a premium for that. Besides these, you must also account for the maintenance charges you’ll be paying. Overall, the most common types of payments you need to make include a down payment, prepaid expenses, insurance, moving expenditures, closing costs, and taxes.
When you consider all these, you will get a sum that must be less than or equal to your income. If there’s more than one earning member in the family, the total amount can be, at most, 30% of the total income in the household. You must remember this number at all times because if you spend more than the stipulated money, you will not be able to manage other day-to-day expenditures or might not be able to save up for upcoming special occasions.
Get Estimates of Different Places
To get estimates, go to popular listing websites such as Zillow and look for the houses in the localities you want. You will get a rough idea about the place, the kind of property it is, and its charges. But above and beyond this, you will also get to know about the house itself. Usually, these platforms provide an all-encompassing report about the property. You get to know details such as the number of floors, the number of rooms, the amenities, and a whole lot more. In fact, you can even get the last transacted price, the price at which the property was sold last, and the current value.
Thus, before you begin your house hunt, it is advisable to get such estimates. After all, if you have an idea about the guesstimates, you will be able to negotiate with the seller or the agent in a tactful manner.
Make a List of Potential Homes
Now comes the part where you have to begin the actual hunt. Make a list of houses based on all the parameters and factors mentioned in the previous sections. But you must also take into account simple things such as how accessible basic necessities are from your house. Instead of choosing just one perfect house, it is always better to make a list of 4 to 5 houses.
This is because when you start going for physical tours, you might encounter certain circumstances which might be unacceptable. Due to this, it will be difficult to get the house you had set your eyes on. So, it is better to have backup places to avoid disappointment.
Start Taking Tours
Once you’ve made the top 5 list, it’s time to start getting in touch with the owners and agents. Schedule tours with them and attend them. When you’re in the house, carry a checklist with you. This list must include everything you want in the house. Earlier, you had made a list of must-haves. Carry that with you and tick them individually as you see them. Check for everything from the basic necessities to luxuries. After you’ve taken the tours, you’ll be in a better headspace to make the right decision.
More often than not, a house might look good while looking at it on a listing site, but when you are physically present in the space, you might not find it as appealing. But that’s when the backup houses come to your rescue, and you have the privilege of choice.
Be Aware of the Red Flags
Scams and fraudulent activities are common in the real estate industry. Several sites and listings might have some form of malicious intent behind them. Now, if you’re new to house hunting, you must be aware of such practices. To keep yourself safe from these schemes, you must be on the lookout for red flags that can give away such scams. A few of those include:
- If you’re unable to get in touch with the owner or the agent. You might be able to talk to them, but they will not physically meet you.
- The owner will give vague reasons for not giving you a physical tour of the property.
- You might be asked to make the down payment without any proper formalities.
- The process might seem rushed to you, and you won’t feel comfortable with the pace at which the owner is trying to sell their house to you.
- If the deal you get seems unrealistic and impractical. In such cases, the house prices would be a fraction of what the rough estimates suggest.
- If the seller/agent asks you to make a down payment through wire transfers or through cash.
- If the lease agreement and other documents don’t seem to be properly drafted. There might be loopholes, or some important spaces might have been left blank without any reason.
Usually, all these red flags indicate that either the seller has malicious intent or the property has some flaws or drawbacks. In either case, the agent or the seller doesn’t want you to catch a whiff of any such thing. Thus, they will always try to rush the process or not be precise with their methods. So, you must always keep your eyes out for such instances and steer clear away from such listings or properties.
Fulfill the Formalities and Make the Payment
Once you’re done negotiating the price and a few other things, you must get started with the formalities, such as signing the agreements and a few other docs. Usually, this process will take about 2 to 4 weeks, and you must be patient throughout this time. Furthermore, as mentioned in the previous section, you must very carefully read all documents before signing them as you get into a legal agreement with another party. Breaking it has consequences, and once you’ve signed it, it’s difficult to change or modify any discrepancies.
Move into Your House
Once all the formalities are done and dusted, you can start with the moving process. Book a porter or movers and packers service who can organize all your things and safely move them into a new house.
With these simple steps, you can buy and move into a house without any hassle. So, now that you know how to go about the complete process, you can start your hunt.
FAQs
Is buying a house a difficult process?
For many people, it might be a tedious, complex, and intricate process, as it will involve paying attention to numerous details, assessing multiple factors, and zeroing in on the perfect house.
How informative are online listing platforms?
Reputed online listing websites such as Zillow and Redfin are quite valuable for the house hunt. You can know details about the place, the current value, and the last transacted price.
How much time does it take to move into a new house?
Well, the house hunt can go on indefinitely depending on your needs and where you’re trying to find them. But it can take anywhere between a few months to about a year.