Buying a house: how to make up your mind
So that time has come in life when you can or want to buy your home, you are looking for a new home, become independent or plan to do it as an investment that could give you passive income or profitability in the future. You have calculated, you have savings available and you already have made the decisión of buying. It is something very important, without a doubt, and we know that it is not an easy process. In any case, it can be much better than it seems when you have things clear. That is why in this article we want to help you define the following steps to be a determined buyer and that way you could enjoy this process. From now on, you will find our five suggestions so you can decide which house is the right one for you.
1.- Define your reasons
Why do you buy the property? The fact of having very clear the reason why you are going to look for a property, helps to filter your options to go directly to those of your preference, and you will save time.
-Is it the location that most influences your decision? Maybe your job is very demanding and you would prefer to be close.
-Would you like to be near to the sea, if your priority could be rest and being able to relax when you arrive from your daily work.
-Do you need a bigger house, or a smaller one? Maybe you have new members in the family. And your house has become too small, or on the contrary, your children have grown up and the house become very large now.
-Are you looking for a house that matches your lifestyle?
We agree with the article "Ten key steps to choose your ideal home", from the Bankinter blog, with which the first step when looking for a house is to make a list of wants and needs. This will be very helpful when you are visiting the properties that interest you. You will be able to write down what you have seen and compare more objectively each prospect.
Also, remember that, as discussed in the BBVA blog link, your possibilities will also depend on factors such as the budget you have available and the supply of homes that you have. Which brings us to the next point.
2.- Analyze your top budget
Be realistic with your possibilities and the way you will face the purchase of your home. If you are financing it, the most advisable thing is not to remain with the first bank in which you look for information but to investigate several options and to decide the best credit option. In this particular, it is difficult to cover all the options that are handled in the market, and it would be highly recommended to be help by a real estate advisor.
An specialist not only will look for the best option for you, but he can negotiate the conditions with several banks, thanks to his previous agreements with them. For example, in our RE / MAX Golden Mile agency we do so.
In the UCI blog (Real Estate Credits Unit), at their article "Tips for looking for a house" they recommend that you should consider an indicative budget. How to be guided? Because the amount you allocate for the purchase of your home does not exceed 40% of your monthly net income.
For this, they recommend dividing your annual income by 12, and calculating 40% (multiplying by 0.4) of the monthly income.
And do not forget to have in mind the purchase costs, which can be 10% of the price! They are paid at the beginning, and this why it is usually added to the price at the time of acquisition.
3.- Know your interest areas
Searching for a house, visit those zone options that most closely match your priorities. Imagine what it would be like to live in that place. In this way, you could filter the locations you discard or those that you like the most and inspire confidence to you as well. As the Expansión website comments, in its article with tips for buying a flat, it is also advisable to make a study about the price and the possible housing revaluation of the area.
It is an investment to the future! Says Beatriz Toribio, Head of Studies of Fotocasa for Expansión: "It is useful to know what the average price of the area and other flats with similar characteristics are." So the ideal thing is to take into account not only the price of the home, but the possibility of having a good long-term investment.
4.- Visit the properties that match your requirements
Visiting houses of interest that meet your requirements is usually the fun part for of buying. Avoid more than three houses a day! In this way make sure you spend the right time to assess their pros and cons, or to dream about it.
5.- Check the legal characteristics of the home and simulate your mortgage (in case you need it)
You should verify the legal and physical characteristics of the property (ownership, registered distribution, if it has any pending load or mortgage ...) thanks to the simple note of the property. It is a vitally important document that can reflect valuable information, such as the land use or the meters built.
The objective is that everything must be in order to proceed with the necessary legal security to purchase the property. Then, simulate how much you would pay with your bank or remember, if you work with a RE / MAX specialist, you would have all this together with the best conditions thanks to our financial partners. If you have any questions looking for a house, we are here to help you. Leave a comment or contact us and we will advise you on the purchase of your property! If you would like to know how is the work of a real estate personal shopper, read here.