Owning a home is a huge milestone that needs careful planning and research to make sure that one makes an informed decision. Researching the market equips you with information necessary to determine the most appropriate locations and their market prices. The real estate market in Austin experienced a year-long upward trend in 2017 and this growth is seemingly unstoppable. Whether a novice or veteran home buyer, here are five tips to buying a home in Austin:
Enlist a realtor
As you can imagine, there is unending legwork involved in buying property and one cannot effectively cover this singlehandedly. Attempting to do so would be too overwhelming and is likely to yield meager results. This is where an experienced realtor comes in. This professional will help you navigate the murky world of real estate and identify properties that suit your specifications and budget. Take caution, though, and check out at least three references to ascertain the realtor’s performance record.
Draft a Budget
Before making an offer on a house, you must first determine what budget works for you in terms of a down payment and subsequent mortgage payments. If you like, arrange a sit-down with your financial advisor to help you understand your financial position and check if you qualify for home deposit grants or other financial aid. Austin home buyers can apply for grants from the Texas State Affordable Housing Corporation (TSAHC).
Pre-qualification and Pre-approval
Even with an enviable credit score, it is fundamental that you get pre-qualified by your lender to buy a home at your suggested price point. This preliminary step assures the seller that you can indeed afford to buy the home. The next crucial step is pre-approval for a mortgage loan and this improves your chances of landing your dream home in case the seller is fielding several offers. Visit your financial lender and see how much funding you qualify for as this will consequently influence your home-buying budget.
Up and Coming Neighborhoods
Location! Location! Location! This is a longstanding real estate mantra that saves a lot of buyers from making costly mistakes. The location of a home matters tenfold as compared to the outlook of the property as it determines the property value in the coming years. More so, the location determines the schooling district your children will have access to and this too, is immensely important. Research various neighborhoods in Austin evaluating the pros and cons of each.
Mortgage companies will only sign off the loan once a home appraisal is complete. They tend to compare the price of comparable properties in the neighborhood to see if it matches the sticker price. It is highly likely that properties are priced at much higher rates than recent equivalent listings. Be ready to negotiate the price or gather up extra funds for a down payment then make your best offer.
In the light of the ongoing property boom in Austin, buyers are increasingly cautious to negate common pitfalls in real estate endeavors. Do your research and find a resourceful helping hand to guide you through the intricacies of the game.