Emma Posted August 31, 2021 Share Posted August 31, 2021 Be it your own or an investment, what are some valuable tips you would give to someone who is venturing into real estate for the first time? Like maybe things to look out for a check for when walking through a house, signs a property will need more work, faulty issues, etc. Quote Link to comment Share on other sites More sharing options...
James Posted August 31, 2021 Share Posted August 31, 2021 Buying your first home is an exciting time. Remember you are not always going to get everything you want and you are going to compromise as you go down this path. If you plan on getting a mortgage get preapproved before you even start looking at homes. This way you know what a bank will allow you to spend. Now just because you are preapproved for certain amount does not mean you need to go out and spend all of that. Try to stay under your budget to keep your monthly payment lower and to allow some space for things that can go wrong once you are a home owner. Luckily if you are a first time buyer you are likely going to be working with a real estate agent to help walk you through the process. Most homes you are looking at will be able to be approved by banks for lending and have standard clauses in the contract for inspections and appraisals. An inspection is going to cost you money so be prepared for a small out pocket cost. They are going to come back with a huge report. Most of it is small stuff and you should push back on the seller to fix it all before moving in. Pay attention to any of the big things. When I am buying property I am always concerned about the roof, foundation, plumbing systems, hvac systems, and electrical. Most of these things will not show up on an inspection other then the HVAC system is old or the water heater is old. Or there looks like there may be some leaking on the roof. Sometimes you need to bring in specialists so you can understand the issue a bit more. You do not need a big house. I used to think I needed a big house. The American dream right? Larger your house the more successful you are. I think I have learned it is a trap. The larger the house the harder it is to sell and the more it costs to maintain. My family of 6 people and 4 pets now lives in a couple thousand sqft but before we had a couple homes that were twice the size. HUGE mistakes I made with those other houses. Remember in the end in the residential real estate market a home is only worth as much as someone else is willing to pay for it. Shopping for a house for myself personally is very different then shopping for investment property. I feel with investment property my criteria of what I buy is even more strict then when buying a home for myself where I am willing to make compromise. My investment properties I like to keep in the sweet spot. Around 1.2k sqft 3 bedroom 1.5 bath. No pools (I live in Phoenix area). In single family rentals I have found rent per sqft drops sharply has the homes get larger and I see that 1k - 1.4k sqft is a pretty decent sweet spot. These homes also always seem to have a large pool of buyers so when you go to sell it it will be fast. Use common sense when walking a property and ask a lot of questions. There is no stupid question. Just keep asking the person representing you should get you the answers you desire. Just try to go in with your eyes open wide. If people are dodging your questions or are giving you answers that do not seem to add up their are likely some flags that you need to look out for. Have fun your first property is the most stressful and the most exciting one. After that it only gets easier each time 🙂 Quote Link to comment Share on other sites More sharing options...
Damon Posted August 31, 2021 Share Posted August 31, 2021 Buying your first house is going to be so fun. I purchased my first house years back, and it was exciting for sure. It was also anxiety inducing because I was worried about money and the cost. But, you get over that as you get into your home and start to live in it. It's worth it to get yourself a home if you can afford to. But, it can be tough, and right now the market is weird. Your best bet is to have contractors come in and check the home over before buying. Basically, just make sure they tell you everything wrong about the house. 1 Quote Link to comment Share on other sites More sharing options...
Kuro Posted September 1, 2021 Share Posted September 1, 2021 I think the biggest tip I've seen is that be prepared to spend more. New houses will usually find certain things about the house that may not be upto par, or require fixing. So don't spend all your money on the house and not have any left over for the inevitable repairs. 1 Quote Link to comment Share on other sites More sharing options...
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