Buying a home is a big step for many people and before any moves are made, it is important to know what you are doing and what you should be looking for. As part of this, many people look for some tips from people that either work in the real estate field or from those that have purchased a home before. While this is a great idea, there are often many tips that are overlooked or simply not talked about. In order to really prepare you for the purchase of a property, you need to know about the most common tips as well as some that are not as well known. These tips can help you make the right decision when you are buying a home.
Understand the Full Cost of a Home
For many people, the actual mortgage payment on a monthly basis is cheaper than renting an apartment or home. However, that is not the full picture. There are a lot of other things to consider such as insurance, property taxes, HOA fees, water bill, electric bill, and much more. While some of these bills are found when renting, there are some that are not at all.
Plus, the ones that you may have had while renting will likely increase, especially if you are moving into a bigger space or if you are moving from an apartment to a West Loop Gate house. These are all things to keep in mind and you want to make sure that you are ready for the potential cost increase, even if everyone is trying to make you focus on the fact that your mortgage payment will be less than your rent.
Don't Jump at the Home Warranty
While a home warranty can be a great thing in the right circumstances, there are also times where it is not the best choice. Instead of jumping at the opportunity, you should take a few things into consideration to ensure you make the right choice. First, it is a good idea to see if you already have protection elsewhere. For example, if you have warranties on your appliances, then you don't need additional coverage on them.
You should also take into account how much it will cost you. Once you know the amount, you can better determine if the plan is worth your time. For example, a bad choice would be getting a plan that costs $200 per month when replacement for an appliance is usually less than the annual cost. However, if it is $200 per year, then it may be worth considering.
Get Everything in Writing
This may seem like something that is obvious but you would be surprised by how many times something has been assumed by a buyer or a seller only to find out it was not part of the deal. You already know that you will need to put a contract on the home but if you require some repairs to be completed before you purchase the home or if you want to make sure that everything you see, like a shed in the backyard, comes with the home, you need to make sure that is in writing. If you do not, you may end up being disappointed in the in end and it may cause a break in the contract.
There are a lot of home buying tips out there but these are not commonly talked about. These can help make your experience a great one.
Ted Guarnero, REALTOR® is a full-time real estate agent with over 1000 homes sold and $400 million in sales. Working with Compass real estate offering professional and effective real estate services to help you succeed in the local real estate market. Visit www.seeChicagorealestate.com for information on downtown Chicago real estate and to get in touch with an expert in the Chicago real estate market. Before you hire your next Realtor call Ted Guarnero 855-See-Chicago, it's on the House !