Best Tips to For the First Time Home Buyer
Buying a home has always been the biggest and most consequential financial move that most people make in their lives. The 2016 environment can make it especially challenging, leaving little margin for error. The biggest mistake prospective homebuyers can make is to embark on a pursuit of their dream home without having a well-conceived plan in place. Every buyer and seller seek the best possible terms for their deal, but how do we get there? Negotiating a home purchase is often like a chess match. It requires a clear view of the playing board as you plan your next several moves in advance.
Understanding the Market as a Buyer
Negotiating a home purchase must start with the understanding that sellers want the highest price and buyers want the best possible deal. The final outcome will fall somewhere in between.. However, at any given time, one party is going to have the upper hand in the negotiation. This of course is dependent on the market conditions. In a buyer’s market, when there is greater supply than demand, the buyer can negotiate from a position of strength. In a seller’s market, where there is less supply than demand, the seller has the upper hand. Having a clear understanding of the local market conditions is vital going into a transaction.
Evaluate assets and liabilities
One of the most important things is to make sure you don’t get in over your head. The last thing you want is to purcahse a house that is well above your means. So it is critically important to do an asessment of your current assets and liabilities.
So you don’t owe too much money and your payments are up to date. But how do you spend your money? Do you have piles of money left over every month, or are you on a shoestring budget?
A first-time homebuyer should have a good idea of what is owed and what is coming in.