If you are looking to buy your first home, the very idea of buying one seems like a terrifying prospect. Yet multitudes of people do it every month. We assure you, all it needs is a little research and patience before embarking on the quest for your ideal home.
Here are 10 major steps involved in home buying that you should know.
Define purpose
An alarmingly large number of people slip up at this crucial step. You need to have complete clarity on the purpose behind your home purchase. Suffice to say “My co-workers think I should” is not a good enough reason. You should also decide if it is for occupation or to be rented out?
Research
Start looking at available properties based on your purpose. Ensure you get references from trusted sources or credible professionals. Shady brokers and vaguely suspicious sellers should be avoided at any cost.
Shortlist
Once you have a few contenders in your list, it’s time to fine-tune. Use your list of preferences and requirements to sort through them. Location, type of property, budget are some of the considerations you should apply at this point.
Site visits
Visiting the properties you like is a chance for you to see these properties up close and personal to assure yourself of the realities of what is being offered. It is a good idea to visit these sites with a clear sense of what is required. Do also take into consideration the area surrounding the property.
Enquire
Post the site visit, ascertain the credibility of the builder. If it is a completed construction with occupants, you could request the residents to provide some insight into their experience of living there. You could also conduct discreet enquiries about the builder to gauge his reputation.
Negotiate
Once you have your heart set on a particular property, try to get a reasonable deal. It is important to understand how the market works, what the prevailing prices in the location are, value of amenities being offered and so on in order to be in an advantageous position to negotiate.
Finance right
For a majority of us, financing the purchase of a home requires applying for a home loan. One thing you should be prepared for is to fund the down payment yourself (which is 20% of the total price). Understand how various home loans work and how the tenure, interest rates and EMIs will affect our finances. It’s best to have a thorough understanding before signing up for the commitment. You may also want to consider taking home insurance at this point.
Documentation
Home buying without requisite documentation is invalid in the eyes of the law. Use this list to get an insight into the paperwork required. Additionally, you should also consult a lawyer to ensure that all the documents are satisfactory and genuine.
Quality check
Once you have made the commitment to purchase the property, you still need to exercise vigilance during the handover. Check to make sure that the quality of construction and amenities promised are being delivered. Any changes or improvements needed should be intimated to the builder or seller before taking ownership.
Furnish and decorate
Once the property legally becomes your home, you can go about planning to furnish and decorate it. Think minimal and functional when starting out. You can always add elements later if required.
While this is a brief lowdown of the home buying process, you may encounter more questions about specific stages of buying. Reach out to us for advice or take a look around our realty guide section for more details.