Buying your first home can be an exciting but daunting process. While it may seem overwhelming at first, with the right approach and some careful planning, you can find a property that ticks all the boxes. From understanding your finances to finding the perfect location, it is important to be well-informed before making such a life changing decision.
Pam Naidu, Director of Sales and Marketing at Devmco Realty, shares some key learnings which every first-time buyer should know when deciding to purchase their dream home.
1. Location, location, location! Also known as the Three L’s:
There are three micro locations that define the actual location of a property on a macro level. If the property you want to purchase is in an estate for example, you may want to find out what area of the estate it sits in and what that actual area provides, such as a good sea views, etc.
2. Financial stability is important:
Get your credit card payments and debts in order.
3. Budget:
Establish a realistic budget to determine your affordability. Create a budget and try to stick to it so that you can enjoy the process and not put yourself under too much pressure.
4. Find a trustworthy real estate agent:
This is the person that will assist in picking out your potential home and exploring your new neighborhood and is also responsible for scheduling tours and negotiating important contracts on your behalf. Ensure that this is someone you trust, to have your best interests at heart.
5. Get approved:
Get a pre-approval letter before you start shopping! This will help you have realistic expectations on what you can afford.
6. Be mindful of transfer and closing costs:
First time buyers usually tend not to factor these costs in, and it comes as a huge surprise at the end. Doing your homework is a very vital part of house hunting.
Becoming a first-time homeowner can be an overwhelming experience and requires careful consideration of several factors. With the expert advice from Devmco Realty, first-time home buyers can make an informed decision and successfully unlock the door to their dream home.
In an article published on 6 December 2020, Steve van Wyk from Seeff Centurion, said it is quite easy to get side-tracked by financing and transferring issues when buying a property and there, he says it is essential to address the factors below long before the actual buying process starts – and ensure no surprises await you once the transaction has gone through.
These are the questions first-time buyers must ask estate agents:
1. Ask the agent for a CMA (Comparative Market Analysis) of the property and ask the agent to explain how the value of the property was determined.
2. Ask the agent about patent defects. Did the seller disclose everything? Make sure that everything is specified in the sales agreement.
3. Ask whether the plans of the property are approved and if there is an undertaking by the seller to provide these plans.
4. Ask if there are any hidden costs, such as the replacement of equipment in the property which is not included in the sale.
5. Ask what exactly is included and not included in the sale and if anything has to be removed and replaced by the seller, and ask for that to be stipulated in the sales agreement.
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