Buying a home is an exciting milestone. When you are finally ready to do it, there are things you should keep in mind. Many first-time homeowners make these common mistakes, but they are avoidable and knowing what they are can help save you time and money.
How much can you afford?
Before searching for a house, determine how much you can afford. Consider the purchase price, as it fits into your daily living budget and additional costs like closing fees, property taxes, homeowners’ insurance, and home maintenance expenses. These costs can add up quickly, so consider them all.
Study your local housing market
New Jersey’s housing market can vary from one area to another. Narrow down the areas you are interested in and look for property values, school districts, and if the area offers amenities. Knowing the area can help make intelligent decisions and negotiate better.
There are websites where you can see property values and neighborhood information. Still, nothing beats getting information from people who live there.
Home inspections
When you choose a house and are in the purchase process, do a thorough home inspection. This is a specialized skill that you can hire someone to do. A home inspection can uncover problems with the property, including structural issues, plumbing or electrical problems.
If your inspector finds significant issues, use that information to negotiate a lower price with the seller of the property.
Know what rights you have
As a homeowner in New Jersey, you will have rights and obligations. It is critical to know what these are under the law. For example, some people confuse the language in forms they must sign, such as a purchase agreement.
People can also be unaware of their rights, such as their rights regarding disclosures by the seller. Consulting with a property attorney is key to protecting your rights and knowing what you are getting into.
Know your closing costs—which can be costly!
People sometimes forget to consider the closing costs at the appropriate time and have to pay significant sums of money. Closing costs can add up quickly and often catch first-time homebuyers off guard. You can negotiate these costs. Speak with your attorney for more information.
Buying your first home is exciting, and you may feel impatient as you look forward to closing day and moving day. While it is great to be excited (and you should be!), remember that it is a significant responsibility, and having legal counsel can ensure you protect yourself every step of the way.