15 members of Forbes Real Estate Council shared their tips for hopeful buyers who are eager to smoothly transition after buying a home in this article.
- Double Check Your Financial Planning: “There are various costs associated with buying a home that people often skip over and then find themselves in a bind — everything from lawyer fees, HOA, property taxes and closing costs.”
- Prepare For A Crisis Moment: “Most transactions are not smooth. There is usually a moment of crisis. It can come during inspections, the loan process or strained negotiations, among other things.”
- Build A Team: “Introduce your real estate attorney, real estate broker and mortgage contact (by email is fine), and ask everyone to keep everyone else posted.”
- Keep Your Eyes On The Prize: “It’s important for a homebuyer to keep their eyes on the prize: the closing table.”
- Stick To The Timeline: “Adhering to the contractual timeline is critical to avoid delays in closing, and to give yourself an advantage on any needed negotiations.”
- Cushion Your Budget: “Don’t max out your entire budget on your home without considering these additional expenses.”
- Be Prepared To Walk Away: “Their home is often the biggest “business” most people will ever own. Treat it like that.”
- Stay Calm And Work With An Agent You Can Trust: “Work with an experienced agent who you trust to represent your interests and to get you to the finish line.”
- Set A Mortgage Contingency Clause: “Although this clause isn’t easy to negotiate, it guarantees that you’re secured from the situation in which for any reason other than your own fault, you’re unable to obtain financing for your purchase, but the seller doesn’t pocket your deposit anyway.”
- Beware Of Your Brain.
- Don’t Cheat On Your Future Home.
- Find Out And Plan For All The Costs: “First things first, make a list and timeline of all upcoming long-term financial commitments like property tax mortgage payments, association fees and insurance.”
- Don’t Let Your Dream Home Become Your Nightmare: “Don’t purchase a car or apply for any new credit…Keep your credit clean and your dreams of home ownership will come true.”
- Schedule An Inspection Immediately. “Notify your lender and make an appointment for a home inspection immediately.”
- Don’t Get Too Emotional: “Stick to health and safety items brought up during the inspection.”
These are all good recommendations. I would add the following:
One, make sure you know who the “agent” works for.
Two, at a minimum obtain a title examination of the property. Note: most times, a lender will require title insurance. That title insurance only protects the bank. Purchase an owner’s policy.
