Do Your Home Buying Homework: 5 Ways to be Prepared

Purchasing a home is one of the biggest decisions you’ll ever make, and it’s critical to go into it with your eyes wide open.

Whether you’ve decided to hire a realtor or explore the waters of new home ownership on your own, you can streamline the process and make it easier to enjoy with the help of a bit of home buying homework.

Read on to learn more.

Do Your Home Buying Homework with These 5 Steps

Regardless of whether you’re looking for a home in the suburbs or a chic, downtown apartment, doing your home buying homework is an excellent way to ensure you’re getting exactly the home you want at a price you can afford. Here are five tips to get started:

1. Define your budget (and stick to it)

Before you start shopping for homes, you need to know how much you can afford to spend. Keep in mind that it’s not just the down payment you need to consider: there are also upkeep costs, utilities, and insurance to consider.

With this in mind, sit down and hammer out your budget. This will give you a better idea of what you should be shopping for and how much house you can afford without over-stretching yourself.

2. Start shopping for the home of your dreams

Now that you know how much you can afford to spend, it’s time to start looking for a home. Ideally, you’ve hired a realtor to help you with the process. If not, though, you’ll need to begin combing private listings, newspapers, and online advertisements.

Keep in mind “must-haves” like great schools, walkable neighborhoods, proximity to entertainment, and easy access to stores as you shop.

3. Find out what other homes in the area have sold for

Once you find a home you love, do a quick search to figure out what other homes in the area have sold for (use a service like Zillow to find out). In addition to helping you understand where the house falls on the fair market scale, this will also give you some leverage when it comes time to put in an offer.

4. Look into any remodeling restrictions on your would-be property or community

If you’re buying a home you intend to stay in for years, take a moment to figure out whether or not there are any restrictions on remodeling activities on the property or community.

In some places, restrictions can be placed on everything from exterior alterations to the home’s color, and these may well influence your purchasing decision.

5. Make an offer on the home

Once you’ve determined your budget, assessed the home’s price compared to others close to it, and ensured you won’t run into remodeling issues down the road, it’s time to put in an offer on your home.

Hire a home inspector to comb through the house for potential red flags and get an appraisal, as well. Once you’ve done these things, you’ll be well on your way to new home ownership!