Purchasing a house entails more than just looking through the pages of classified ads for any house for sale. Real estate investments like buying an abode would probably be the most enormous purchase an average person can make. Despite the hefty price, however, there is nothing more fulfilling that getting yourself your own place and build dreams around it.
Why should you buy a house?
Renting is of course an alternative for those who still cannot afford to have their own houses. At a considerable price, however, the price you pay for rent may also get you an abode that can be paid at a per month basis, especially through bank financing. In this vein, it is always wiser to allot your money to paying for a house you can call your own, that leasing a place and not getting back anything from the budget you shed.
To put it simply, looking for a house for sale is a way to turn your money into an asset.
From various studies, experts found that the value of houses in between 1940 and 2010 had gone four times higher. This means that those who have bought a house in the 1940s can now sell their property at a quadrupled price. More so, these percentages were only derived from an average value. Good agents may have the property put in the market at a much higher value.
Those who bought a house in the bust periods that include the 1990s and between 2007 and 2011 are projected to be able to sell their houses with a doubled value within ten years or less.
What should you do before buying a house?
First time buyers may find this venture intimidating and confusing, especially when they are presented with the terms of payments, interests and amortizations. True enough, investing in real estate is an arduous and daunting process if you do not get yourself familiar with the terms. Prior to the purchase of the house, therefore, one must:
1. Decide on specific needs. Note that knowing what you want would win you half of the battle. Find a house for sale that satisfies your needs makes you victorious in the battle. Deciding on a duplex or a bungalow would narrow your choices, and lets you choose among the pool of available options.
2. Compare the mortgage payments. Setting a good budget will serve as a guide to choose the right price range and prevents you from purchasing a house that is way beyond your means. The bank may give an assessment that your income would be suffice to pay for house, but only you can determine whether there’s an extra room for payment alongside your hobbies and other expenses.
3. Find a good agent. He or she can be your representative in the negotiation process. The best agent should be approachable, relaxed, confident and firm. Look into the agent’s experience and training. Feed all the specific details of the house you want to buy such as the number of bedrooms, space for the garage, etc.
4. Submit documents and close escrow. It is through this process that the new owners get a hold on the deeds, title and other legal proof of ownership.