4 Things To Know Before Buying Your First Real Estate Property

By  //  August 17, 2022

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Regardless of the reason you want to buy your first real estate property, getting your own home is definitely a daunting and exciting venture. That’s why, according to a survey done by the National Association of Realtors, 34% of home sales were made by first-time homebuyers in 2022.

Still, even if it’s exciting to finally have a place that’ll reflect your taste and preference, it’s crucial that you don’t get too excited to the point that your first real estate property is going to burn a hole in your pocket. 

Getting a real estate property is probably one of the biggest investments most people make. Hence, instead of impulsively buying any property, you need to have the right resources and information. In return, you’ll have a seamless buying process.

With that said, if you’re buying an investment property or a residential home, keep these considerations in mind when buying your first real estate property.

1. How to set a budget

Before you set your heart on a real estate property that contains all of the features and amenities you’ve always dreamed of having, it’s important to assess if you can afford it. To do so, seriously reflect on your average monthly budget –– look at where you’re mostly spending your money (dry cleaning and restaurant bills, but not your rent). Don’t forget to take into account any home-related expenses, like increased utility bills, maintenance, and insurance. 

Next, know how much you’ll have left after paying all of your bills –– the final amount is going to be dedicated to paying for your new real estate property and monthly mortgage. If the numbers aren’t adding up, it’s time to change your spending habits. Doing so will allow you to afford your ideal home without leaving a dent in your savings.

As this is your first real estate property, it’s best to invest in a low-maintenance, low-cost single-family home or condo. This is still applicable even if you have a million-dollar budget. In other words, start investing in real estate properties that are in the low- to mid-range brackets.

2. Determine the location

Furthermore, the cost of a real estate property will depend on many factors, specifically the property’s geographical location. The location of the property will have a huge role in ensuring your safety and convenience, which is important if you’re planning to buy a new home. So, for example, if you’re looking for houses in Orlando, research the neighborhood, nearest schools, and more. 

3. The seller’s incentive to sell

Some sellers are more eager to sell their property, while others just want to list their home on the market without caring if it sells or not. Negotiating a deal with the latter type of seller can be difficult as they’re mostly not open to adjusting the price. Besides, the seller may have the option to continue living at the property if their price isn’t met.

On the other hand, a seller that’s motivated to sell is more likely to meet you and your realtor halfway for multiple reasons. For instance, they may need to relocate due to their work, or they just don’t want to handle the responsibilities of a homeowner. Thus, if you want to save money buying your first real estate property, consult a successful real estate agent in your area, as they’ll have the expertise to assess the seller’s motivation to sell.

4. Don’t listen to your emotions

When buying your first real estate property, there’s a huge chance that you may choose a home based on your emotions rather than your reason. Although your emotions will play a crucial role in choosing a home that you’re going to live in for many years, buying your first real estate property should be considered a business investment. 

As a business investment, you must logically negotiate with the seller to end up with the best price. If you bought a property at an affordable price, then you’ll have more chances of earning more profit from it in the long run.

Final words

As you can see, buying your first real estate property isn’t a walk in the park. For one, you’ll have to spend a lot of your time and effort researching and comparing various properties in your ideal location. Thankfully, the aforementioned tips will help give you peace of mind that you’ll end up with a property you won’t regret. In return, not only will you be free of rental fees, but you’ll also end up with a property that suits your lifestyle and personality.