Homebuying can be a tricky thing, especially for first-timers. Unless you have a very reliable and trustworthy friend and relative or know someone who is widely experienced in the field, you will need to be properly equipped with knowledge before getting started with the whole process and sealing the deal. Surely you wouldn’t want your hard-earned cash be put into waste simply because you are not educated enough with the general FAQs and what-nots.
Here are some of the common questions that arise during the homebuying phase. Let this be a guide to homebuyers who are making a purchase the first time.
- 1. How much money do I need in the first place? This is split up into two-folds: the deposit you need to make when you settled the agreement; and the costs associated with all the legal aspects and paperwork. Regarding the housing cost, do consider the monthly charges as well – homeowner association fees, utilities, mortgage insurance, etc. Remember that amount differs depending on the type of residential property you have. For example, a family home may be more expensive to keep than that of a condominium.
- 2. What’s the usual down payment rate and how much do I produce upfront? The down payment rate can range from as little as 5% to as high as 25% which solely depends on the home seller himself. As for the cash on hand, you will also have to add around 5-7% of the purchase price for the closing costs and of course, some bucks for the per month expenses good for three to four months.
- 3. What’s a reasonable offer? Make a rough research on the properties within the vicinity before you make a bid. For instance, if you are planning to buy a house for sale in the Philippines like a Makati condo, for example, weigh the land cost in the neighborhood. Do check the current state the current state of real estate in the Philippines too so you will be suitably guided about the status of the Philippine market. Do not forget to take for consideration the physical condition of the house.
- 4. What do I do if my bid is rejected? This is where negotiations come in. This is when you have to learn how much the initial price was, was there a spike during the entire time it was up in the market, how long has it been up there, how big is the competition, has there been many of them and what motivates the owner to sell them out. Once you are complete with this vital information, it’s easier to negotiate your way towards success.