You have decided to buy your first home. Congratulations! This is a huge decision and one that should not be taken lightly. Buying real estate for the first time can be daunting, but there are plenty of resources out there to help you out. There are many things to consider when buying real estate, including the location and type of real estate, as well as the financing options available to you. In this blog post, we will answer some of the first time home buyers frequently asked questions about buying real estate for the first time. Let's get started!
Here are a few steps you can take to start your journey of buying your first real estate investment. Review your financial position. Undertake an honest assessment of your finances. What is your credit score? Do you have any high-interest debt? If so, you should clear this before saving for your first home. Doing so will only slow you down in the long run. Decide how much you can save. As a tip, look at how much you can save each month and then consider what you can do at least in the short term to minimize your non-essential spending so that you can boost your monthly savings. Understand how much you can borrow Understanding how much you can save is a significant step. However, you’ll also need to look at how much you can borrow. Speak to a mortgage loan team or private mortgage insurance to know your borrowing ability. Decide on your wishlist Decide on what will make your home, yours. Do you need outdoor space? Do you want to be in a certain location? Deciding what you want and need upfront will save you so much time when searching and will ensure you get the best suited for you. Get yourself a realtor A real estate agent will be able to shortlist properties for you as they hit the market and arrange viewings (even virtually).
It is strongly recommended that you have a real estate agent when buying real estate. Whether you are a first-time or a seasoned buyer this process can be complicated and timely, and a real estate agent will represent your interests and be familiar with the area you are focused on. Real estate agents are familiar with local markets; they have access to market data and know when a house is priced low, high, or correctly. They also have access to listings for short sales, which can be excellent options for some buyers but are only shared in trusted circles of real estate agents. A good real estate agent will guide you through the entire process, from house hunting to closing, and if you are buying your first home, your agent will be there to help you with "first-time home buyer frequently asked questions".
As a homebuyer or seller, you should expect your real estate agent to: Provide you with market data and analysis to help you price your home accurately. Help you find the right home by searching for properties that fit your budget and requirements. Negotiate on your behalf to get the best possible price for your home. Help you with the paperwork and other details involved in buying or selling a home. Be available to answer your questions and help you through the process. Show you homes that fit your budget and requirements. Help you
You can ask your friends or family for recommendations. Once you have a few agents in mind, be sure to interview them to make sure they’re a good fit for you. When interviewing agents, be sure to ask about their: Experience in the business - success rate-number of homes they've sold - and any other questions you may have. Additionally, it’s always a good idea to check an agent’s reviews before working with them. You can do this by searching for their name on Google.
Buying a home can be a very solid investment. This being said, renting can also be a better option for some people, depending on the circumstances. There are questions that you should ask yourself before deciding to buy a home. One of the most important things to consider is how long you plan on staying in a home, if you were to purchase. If the answer is only a few years, it's likely the better decision is to continue renting. Another question to ask yourself is whether you are ready to take on the additional responsibilities of owning a home. When owning a home, there will be general home maintenance that should be done. Are you ready for that? Buying a home can be a great option in many cases, but it's not always the best choice.
Real estate agents do not charge buyers. Instead, they get paid by the seller from the sales price—in the form of a commission.
There's no magic number, but we can share a few tips to help you feel a bit more confident in your final decision. Do you need to be moved into a new place by next week? Realistically, you're not going to see as many houses as, say, someone who has months or a year to look. Thinking about how long you want the process to take will help you set realistic expectations. Take virtual tours at the click of a mouse or tap of your finger - This will allow you to see more properties, limit it to about three houses per day; this will give you ample time to tour each home, and take photos, and notes. (Do not risk forgetting wrong, take thorough notes and keep them in one place. This will make sorting later easier.)
Yes! A final walk-through is very necessary. And no matter how busy you are, the final walk-through should remain a priority as part of your home-buying process. The purpose of the final walk-through is to make sure the house you’re buying is in the condition you agreed to when you bought it - that everything in the property is exactly the way it was when you did your initial walk-through. In some cases, your real estate agent can do this on your behalf. A walkthrough should be scheduled at regular intervals throughout the project, and attendance should be mandatory for all team members. The walkthrough leader should be someone who is not directly involved in the project so that they can provide an unbiased overview. At the beginning of the walkthrough, the leader should explain the purpose of the meeting and go over the agenda. Then, each team member should give a brief update on their progress. The leader should then take questions from the team and address any concerns. Finally, the leader should summarize the meeting and provide any necessary follow-up. Project walkthroughs are an important part of project management. They allow you to get an overview of the project, identify any potential problems, and get clarification from the project team. Walkthroughs should be scheduled at regular intervals throughout the project Importance of a walkthrough: It allows you to get an overview of the project and its progress. It allows you to identify any potential problems that may need to be addressed. It provides an opportunity for you to ask questions and get clarification from the project team.
Whilst there is no minimum amount that you are required to pay as a down payment for a home purchase in Kenya, it is important to note that the larger the down payment, the smaller your mortgage will be and vice versa. It is also worth mentioning that most lenders will require you to have a minimum down payment of 10% before they will consider lending.
