In real estate, making a sale is tough. But this can be more complicated when you have bought the property wrong. So, to ensure you can make quick house sales, it is important that you don’t make mistakes in buying a house. But avoiding “buying mistakes” is easier said than done. Even the veterans are not immune to this reality and it’s even harsh for a new or a first-time buyer.
Here are 4 of my secret tips for buying a house, especially for first-time buyers. So, read carefully if you don’t want to start your career in real estate with a failure.
1. Compare your need vs want
Before I explain my point, you need to understand what do I mean by need and want.
“Need” in this case – means the features of facilities of your house that you absolutely need. For example, a big backyard can be your need. On the other hand, “Want” is the features or facilities that you can negotiate. They are not compulsory but they are preferred. A backyard could be your need but a pool in the backyard is more like a want.
Similar to the backyard and pool scenario, you need to asses your need vs want situation. Write down what facilities are absolutely necessary and what you can spare. Once you got the priorities sorted out, it will be easier to identify what properties you need and what assets you can pass off and break the deal.
2. Know your financial capabilities
Before you go searching for your dream house, you should consider your finances. Make sure you know how much can you pull from banks or investors. Also, calculate the maintenance costs and how they are going to be met each month.
3. Get in touch with local real estate agents
If you are planning to buy a house in your neighborhood, you most probably have the data to asses the market situation. However, if you are looking to spread your wings even further, far from your neighborhood, it is a must that you contact the local real estate agents and get a clear idea on the market there.
4. Don’t be overhyped and don’t underplay while making the offer
Majority of the deal-sealing mistakes people make – they make while approaching with the offer. More often than not, they play either “hard to get” or “too quick to be impressed”. When you say things like – “This is the best price you are going to get”, “No one’s gonna pay more this place”, “Look for someone else, I’m not willing to spend this much for your house”, you automatically become the jerk who is hard to get. And judging by my experience, the seller will most probably go look for someone else who is a little bit more interested in the property than you are. But don’t show too much interest by saying – “This is my dream house”, “This is the house I was looking for all those years”, etc. If you do so, you might come across as a desperate buyer, thus higher demand.0