TIPS FOR BUYERS
- Do market research: Understanding the market is the very first and important thing to do before purchasing a property. Things to search could be interest rate, crime rate statistics, schools districts, or neighborhoods convenience.
- Talk to a mortgage broker: Different banks offer different interest rates and terms for your mortgage. You can ask for advises and compare with various banks, then choose the best one that suites your needs. Getting an pre-approval is an important step because it avoids potential financing delays and gives you the predictability of mortgage payment. Usually, banks allow customers to lock their rate for 3-4 months, which will protect buyers against interest rate increase. If the interest rate drops at the time of purchasing, you can switch to a lower rate.
- Be prepared to respond to the market: In a competitive real estate market, properties can sell quickly, especially the ones with great conditions, excellent investment potential, or below the market price. Sometimes, we don’t have time to think too long before it’s sold.
- Consider resale value: While you may not be thinking about selling your property right now, it's important to consider its resale value. Look for properties in desirable neighborhoods with good schools, low crime rates, and conveniences like public transportation and shopping.
- Don't overlook: During property tours, it's important not to overlook the condition of key components such as the roof, ceiling, windows, and flooring. Paying attention to details can reveal visual defects that may not be immediately apparent. This could potentially help with your purchasing decisions.
- Doing a comparative analysis: This is important before purchasing because it allows the buyer to understand the fair market value of the property they are interested in relative to other similar properties in the same community. With a comparative analysis, buyers can negotiate with confidence, avoid overpaying for the property, and ensure they are getting a fair deal.
- Get a home inspection: Once you find a property that you're interested in, hire a professional home inspector to check its condition. This can help you identify any potential issues, plan for future repairs, or negotiate the price with the sellers.
- Importance of reviewing condo documents: Buyers can choose to hire condo documents reviewer to help the buyer to identify overall financial health of the property, such as condo budgeting, reserve funds, or any outstanding debts or liens. The bylaws typically establish rules and regulations about pets, renovations, noise, rental, business use purposes and the use of common area. Additionally, it's important to check for any upcoming projects or repairs that may require special assessments or increase monthly fees.
- Checking nearby development projects: Buyers may want to check for any nearby development projects that could potentially cause construction noise, traffic disruptions, changes to the neighborhood's character, or impact the value of the property. For example, a new shopping center development nearby could increase property values, while a landfill being built nearby could negatively impact property values.
- Walkthrough before closing: This is important because it allows the buyer to verify that the property is in the same condition as when they agreed to purchase it and to ensure that any agreed-upon repairs have been completed.
- Obtain property insurance: Most lenders require homeowners to have property insurance as a condition of the mortgage. This is because the lender has a financial interest in the property and wants to ensure that it is protected from a natural disaster, theft, or other unforeseen events. However, even if you don’t have a mortgage for the property, it’s still highly recommended to have property insurance for your liability protection and for a peace of mind in the event of any damage or loss.
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