Buying a house is a big investment and you need to be extremely cautious when making this decision. Here are some mistakes that you should avoid while buying a home:
Choosing a wrong real estate agent
You must hire a reliable real estate agent who understands the market and can help you get the right property. You must make sure the agent has good communication skills and extensive experience in the industry. He must help you right from searching the property to preparing the documents, negotiating, and closing the deal. You should also ensure that he is licensed and experienced to handle everything professionally.
Buying before getting preapproval
Before you purchase a home, it is important that you do your homework. You should know about the amount of loan you can borrow and ensure that you get a pre-approval letter from the lenders. It would be disappointing if you finalize a property but later realize that your loan is not approved. Some agents do not arrange property visit if you do not have a pre-approval letter.
Spending over the budget
You should make sure that you spend less than the mortgage amount you have been approved for. Buying a house involves many other expenses such as property taxes, maintenance, appraisal fee, credit report fee, homeowner’s insurance, etc. You should always keep these charges separate from the monthly mortgage to ensure you don’t face any financial difficulties.
Avoiding home inspection
You must hire a professional to carry out a thorough inspection of the property, which includes all the structural and plumbing issues. He will also give you an estimate of the extra money that you might need to spend on repairing the house.
Ignoring the resale value
While buying a new home, most people tend to believe that they will keep it forever. However, unexpected changes and events in life such as job change, illnesses, etc. can lead us to selling the property. Therefore, make sure that you purchase a property that would give you higher returns on your investment.
Trusting verbal agreements
A common mistake often committed by homebuyers is trusting verbal agreement by the sellers. These are not binding and therefore, you must ensure that you get everything in writing. However before you sign the deal, make sure you read all the terms and conditions that are written in fine print.
If you are planning to rent an apartment you should pay attention to some important factors. Having set criteria will ensure that you get the best deal and the tenancy goes hassle free. Here are some points that you must keep in mind before renting an apartment:
- Negotiate the deal: To crack the best deal it is always worth negotiating. In a tight market, negotiating may be difficult; however, there is always scope of getting a better deal. It is always good to do some research, check out the rates of similar apartments and use this information to negotiate with the property owner. If the landlord is not ready to negotiate on the rent rate, then ask for any discounts, if you sign the lease for a longer term. Negotiation can also help you make the lease terms more flexible.
- Get everything in writing: In case the landlord agrees to modify any lease terms or offers any discounts, make sure you have everything in written form. If you are sharing the apartment with someone, then ensure that the lease document has the names of other occupants; otherwise, you will be solely held responsible for all the damages in the apartment. You should also get the signatures of other occupants on the document to ensure that they will share the responsibility.
- Make yourself aware of your rights: It is crucial that you understand your rights as a tenant. This will protect you from being exploited by the landlord. The landlord-tenant laws vary from state to state; therefore, it is essential that you are aware of the tenant’s rights in your state.
- Buy insurance: Before you rent an apartment, make sure you buy renters insurance, which is relatively cheap and offers extensive coverage for your personal possessions. The insurance will pay the replacement costs in any event of loss, theft or destruction. Renters insurance comes with liability coverage, which also covers anyone injured in your home. Your renters insurance will also pay for temporary living expenses, if your home is damaged in any disaster.
By carefully selecting the rental property, inspecting it, and signing the lease carefully, you can avoid many rental troubles. You should ensure that the place you rent is safe for you and your family. You must check out the location, amenities, rules and regulations of the community, and other basic facilities before signing the lease.
We, at Lone Star & Property Management, Inc. provide extensive MLS lsiting of rental apartments, townhomes and duplexes in Killeen, TX. You can visit our real estate agents at 1020 W JASPER DR, KILLEEN, TX 76542 or call (254) 699 - 7003.
When shifting to a new place you can either buy a house or rent a house. If renting a house offers convenience and flexibility then owning a house has the benefits of ownership. At times it may become difficult to decide which option is better and certain compelling arguments work in the favor of both options. However your personal preference and circumstances can be main deciding factors.
Here are some benefits of both renting as well as buying a home:
Benefits of renting a house
- Flexibility: The biggest advantage of renting a home is flexibility as it comes with the freedom of moving as and when required. As life progresses you may have different needs and with a rental home you can easily move to a house that is more appropriate for you. A couple may find a one-bedroom apartment worthy; however, once they have kids, they may need more space to accommodate them. It also makes it easy for you to shift to a new location according to change in your workplace or a preferred school. Renting a house is the best decision for people with an unstable job, limited resources and financial liabilities.
- Renting is cost effective: Living in a rental house also has the advantage of not bearing any maintenance or repair expenses as these costs are the responsibility of the owner or the rental company. With more and more houses available for rent, the rent amount has declined. Less rent enables people to live in a high-end area without putting too much pressure on their pocket.
Benefits of buying a house
- Building an asset: The biggest benefit of buying a house is that it is your investment that you can leave for your next generation. As an asset, it grows in value and also gives the opportunity to afford a bigger house later on and have a comfortable retirement. Once you own the house you don’t need to make any monthly payments, which is a very comfortable situation post retirement.
- Make renovations: When you own a house, you can improve it according to the changing times and your requirements. This not only makes your life easy, but also adds to the value of your house. You can make necessary alterations as per your personal choice without having to ask for any permission.
Whether you want to buy or rent a house, it is your personal decision. However you can consider the pros and cons of each before making your mind.