Buying a new home is one of the most significant financial decisions most people will ever make, and it can be easy to get caught up in the excitement of it all. However, before investing in a property, it is important to ask some critical questions. I have provided a list of key questions to ask yourself to make an informed decision.
What are your reasons for buying a new home?
There are several reasons why someone might consider buying a new home. More space for a growing family, downsizing for retirement, a location that suits your lifestyle or work needs… or as an investment that will allow you to reach your financial goals. Carefully consider the reasons based on your circumstances and priorities.
What is my budget, and can I afford this home?
Before beginning the home search, determine your budget and apply for a mortgage pre-approval. When calculating what you can afford, it is crucial to consider all the costs associated with homeownership, such as mortgage payments, property taxes, insurance, and maintenance costs. Download my free mortgage calculator on the app store to play around with the numbers.
What is the neighbourhood like?
It is vital to consider the neighbourhood when purchasing a property. Research the crime rates, school quality, and proximity to amenities such as shops, restaurants, and parks. Also, check the property’s proximity to transportation, hospitals and other essential facilities.
Do you have a credible real estate agent?
An experienced real estate agent will have in-depth knowledge of the local market, including current trends, prices, and inventory. They are experts in negotiating prices and can help you get the best possible deal. Overall, you will have a more positive experience with a credible real estate agent by your side.
What is the resale value of the property?
Even if recent home prices have risen in the area, it is essential to ask what the property’s resale value is. This is the amount at which similar properties in the area have sold for recently. Understanding trends will help decide whether the property is a good investment.
Buying a home is a significant decision that should not be rushed. Asking the right questions can help one avoid expensive mistakes. You don’t have to answer these questions alone! Please feel free to reach out anytime, I’m here to help.