Are you looking to get onto the first rung of the property ladder? It’s an incredibly exciting time, but it is fraught with difficulties. And, given that buying a home is likely to be the biggest investment you will make in your life, it’s important to understand the issues before you encounter them. With this in mind, we’re going to explore some of the major problems that most first-time buyers will face at some point – let’s get started right away.
The process
When you buy a home, there is a lot of money at stake for everyone involved, from you and the seller, all the way through to the lawyer, escrow agents, and the banks. It’s no surprise, then, that buying a home can be a legal minefield. The process involves so many people that you may not be expecting, too, such as home inspectors, financial advisors, and surveyors. Even when you think you have struck a good deal, the waiting game will cause you weeks – possibly months – of anxiety. So, be aware that this can be a long and drawn out process, and the ultimate test of your patience.
The money
Off course, the money will be a huge factor involved in buying a home. The chances are that you will need a significant deposit – 10% is typical for first-time home buyers. But you will also need to be financially secure enough to meet your mortgage payments for many years to come, and you will have to allow for lots of other payments such as survey fees, inspections, and closing costs. As a first-time home buyer, the chances are that your finances mean you will be looking for cheap houses, of course. However, make sure you have funds available to pay for everything else, or the deal could slip through your fingers.
The responsibility
It can be hard to explain to someone who has only ever rented their home how good they have it. But the second you buy a home, there will be part of you that wishes you still had a landlord. If anything goes wrong – you are responsible. Broken heaters, damaged plumbing systems, structural damage – it’s all down to you. And make no mistake, it will cost a fortune. Ensure you make proper checks on the home before making a purchase, or you could end up regretting it.
The competition
You might find the first home of your dreams within a week. You could put in more than the asking price. But the simple facts ae that the housing market is a fierce place, and nice homes go fast – often to the highest bidder, or a cash buyer. In fact, all-cash offers are becoming more prevalent, as wealthy parents buy up properties all over the place for their growing children. So, if you like a house – act fast. Don’t cut corners, of course, but always be ready to make an offer as soon as possible. Leave it a week, and you could miss out on the perfect home for your new life.
I agree that process & money are the two biggest problems home buyers will face. The buyer needs to know the process of buying a house & money of course to buy the house. Great blog by the way. Thanks for sharing.