A Checklist to go through before you buy your first Home
Home Buying is a giant step to take in one’s life. From that satisfaction of buying the
first home to making an investment in the second, it takes a lot of preparation and
planning in the process. Let us take a step back, get our facts right and fight the
hurdles of buying cycle even before considering houses.
We don’t want you to spend your weekends in getting this right and be skeptical of
the chosen house before buying. We have made an effort to make this complicated
cycle simple for you. Read through:
1) Know your purpose
It is important for you to know what you are looking for and what type of house suits
you, after all, you are making the biggest purchase of your life. What would you want
to achieve by this huge purchase? Make up your mind! Maybe it is your first property
in Mumbai and you know you will stay there with your family, in that case, evaluate
the pros and cons, needs and wants of the family, get into detailing from the bathroom
layout till the neighbourhood. Well, sometimes it is good to have the flexibility to match
your wants and needs but you need to have a clarity on your look out.
2) Know your range
It is always easy to fall when we end up paying more than we can afford especially
when it comes to big purchases, be it your first car or your house. Know how much
you can afford, not only monthly installment but also the overall expenditure. The
eligibility for a mortgage, knowing your credit score is very important to know the
offering from banks against your records.
3) Know your home
Now that you know your wants and range, it is easier for you to fit the perfect home
in, for example, if I know I’m a greenery-nature person looking for 2BHK flats in
Ghatkopar, Mumbai in the affordable range, then Group Integrated tops the list of real
estate developers in Mumbai that I need to look out for.
4) Know your agent
While mostly everyone settles with a good reference by family or friends on real
estate developers, we wish buying property in India was so much easier. Whether it is
payment percentage, pre-approved a mortgage, negotiation or paperwork, you need to
have the right agent. Take at least 5 interviews, evaluate agents who can assist, has
credibility, know pitfalls and help you throughout the buying cycle.
We are now done with the major Know Hows and ready to go house hunting. Let us
5) Know the consideration set
Now that you have done your homework, understand the purpose or the type of the
house and see if there is a match to your want. Remember, this house that you are
planning to take on the consideration set has to intersect with your affordable range.
Now consider your financial options as a first-time buyer. Your monthly installment
will have the major impact on your lifestyle, make sure you have this considered as per
6) Know your Offer
And now you have chosen the house that falls into all the necessary sets as per your
wants and is affordable. Always make an offer to the developer to your best suit not
only restricted to the overall expenditure but also in terms of down payments,
maintenance, monthly installment, apartment benefits, registration etc.,
7) Know the timelines
Discuss with your agent and know what best you can get out of the deal when you
make an offer. Get your facts clear on the timelines and hand overs, your major
involvement in each stage of completion. Make a good-faith deposit and the process
then transitions into escrow which is a 30 day period where the house is taken off
market and frozen for you.
All set and done, when you get all your inspection on quality and safety reports right,
be the best negotiator you can be or have one on your side. Negotiate considering
any repairs or modifications if need be. And now you are ready to close which means
a lot of paperwork and signatures.
Oops! one last thing to know that boosts your confidence and enthuse.
9) Know the market: Real Estate Act
While we acknowledge that the new Real Estate Act should address problems faced
by builders in sanctions and approvals, but mainly the act would protect the interests
and succor to home buyers. The act mandates registration of projects, including
those that do not have the completion or occupancy certificates. Registration will require
builders to set aside 70% of the funds collected from buyers and pay interest in the case
10) Just smile, be proud, confident and stay happy.
Yay! Happy House Hunting!