31/08/2020 by African Developers Group 0 Comments
Costly Mistakes Home Buyers Make
Buying a home or an apartment is one of the largest and most significant purchases you’ll ever make, and doing it wrong will cripple you with stress and rob you of your other financial goals. So, protect yourself by knowing what not to do. This article tackles general mistakes anywhere not just in Nairobi or Kenya.
Mistake 1: Not Organizing Your FinancesBefore looking for your home or property take the time to get pre-qualified by the bank or mortgage broker you choose. This can save you hours of searching for homes or apartment in the wrong real estate price range or worse, purchasing a home and then finding out you don't qualify for financing. Pre-qualifying gives you peace of mind, helps narrow your search criteria and most importantly, gives your agent a negotiating edge by being able to alleviate the sellers concern over financing.
Mistake 2: Not Getting Prifessional Agents and InspectionsGetting professional agent is crucial specially in the field of real estate and large property purchases. Your agent can help you make an apartment purchase with the least amount of problems. He or she can ensure the price you pay is market value. They can offer expert advice on what to look for, conditions to include, negotiation strategy etc. After all, they work for you. Nobody wants to purchase a home only to find out later there are defects, latent or otherwise. Ensure you obtain inspections where needed e.g. home inspection, structural engineer, insect, radon etc. If the inspection identifies deficiencies you may be able to negotiate the purchase price to cover required repairs or make your satisfaction of the inspection subject to the homeowner remedying the problem. Your agent can advise you on inspections you should consider.
Mistake 3: Buying First Before SellingIf price is important you should always sell your present home before buying another property. It has the advantage in letting you know exactly how much money you will have available for your next purchase. Selling your home first allows you to place fewer conditions on your purchase which makes your offer more attractive to a seller. They often will demand more money to take a "subject to" offer which takes their home off the market. The other advantage is if you find a terrific apartment, chances are others will also find it attractive and you stand to lose it if you can't make an offer.
Mistake 4: Not Knowing the Full Cost Of Buying
Know all the costs associated with your purchase. Consider the following costs: legal fees, transfer tax, property taxes, new home landscaping, fencing, appliances, window coverings.
Mistake 5: Getting the wrong MortagageThere are many types of mortgages. Most of them are designed to get you into a house no matter your financial situation. But if you sit down and do the math, you’d probably think twice about the tens of thousands of shillings you’d pay in interest and fees, and the decades you’d spend in debt by getting the wrong mortgage. You need to know what the best rate is and this is usually done by getting competitive quotes. Also, ask whether the bank will cover appraisal fees, penalties, payment options etc. Lots of lenders will say you can afford more, but stay conservative. For more information on the types of mortgages available in Kenya, check out our article; Mortgage in Kenya. Is it the viable option for you? Most people assume that affordable housing means cheap. Quality is often sacrificed in exchange for low costs. Customers are sold homes which are poorly designed, cheaply built, often needing costly repairs quickly and, therefore, their purchase is ultimately not sustainable. ADG disagrees and believes that everyone deserves a safe place to live; it can transform the quality of life of individuals and families. A new house is a very big investment for our customers; they do not deserve to buy bad quality. Do not let these costly mistakes ruin your home buying experience, you deserve the very best!