It is time for the big move, making that purchase and eventually moving to the house of your dreams, or at least, something relatively close. However, you need to choose something suitable from the several homes for sale listings. What are some factors that will help you make the right decision? Let us consider 5 factors that can help you narrow down your options.
5 Things to consider while searching for homes for sale
1. Understand your budget
Several things affect the price of houses and there are things you should calculate given your budget as a buyer. If you have enough to pay for the house in full and still tackle other emergencies when the need arises, then you have no problems. However, if you do not fall under this category, you might want to consider these given your income.
- DTI
As a Nigerian getting a mortgage in most cases is next to impossible. However, when you get this opportunity, you need to calculate your DTI to determine how much you can afford on mortgage. It is advisable to keep your debt-to-income ratio at 36% or 43% at most. In other words, you should not have to spend more than 36 or 43 percent of your income on your housing expenses. These expenses would include mortgage insurance, mortgage, property tax, and homeowners insurance.
- Down payment
At the very least, it is advisable to render 20 percent of the price of the house in question as a down payment. Then you should consider if you will be able to cater to other needs once you sort the down payment of the house out.
- Desired home type
The type of home you are looking out for would also play a role in determining how much you will be spending. Purchasing a studio, a condo, or a duplex would each vary in price. So before settling for a deal, compare available prices. Perhaps you will find an even better deal cost-wise when you choose to settle for a different home style.
2. Location
Where is this potential home located? Is it in an environment that is well-developed and secure, or would you be the first occupant for a while? Yes, being the first occupant in an area has its perks, but having people around will help add a touch of security.
3. Infrastructure
Does this house you have set sights on have the much-needed infrastructure around it? How far is it from your place of work or school? Is there a healthcare center at a convenient distance? Is there a good road network, and would you enjoy good internet connectivity? If you are considering staying at this new house long-term, you might want to factor out what infrastructure you can and cannot live without.
4. Condition of the structure
To ensure you do not incur more costs than your budget, you need to verify that the house is in good shape. Getting a newly built house will eradicate this worry. However, when a relatively old house is what is available, you must ensure that renovations would not consume a load of whatever money you have left.
5. Time of the year
At some point, you should also factor in the season of purchase. In some cases, there are more vacant houses to choose from when it is spring (March-May/June). Some realtors/real estate agents provide combined information on the average cost of homes in certain areas during different months of the year.
Bottom Line
Should you jump at the first homes for sale offer? To avoid settling for a property that could resort to problems, you must first verify that you are in touch with the right persons, namely the homeowner or realtors with the brokerage. Then, consider your financial standing and determine the breakdown of what you will be spending on this big move. When you find a residence that ticks your boxes through an online listing, you can request a private showing to verify that things are as they seem. Although, not every listing comes with a private showing. You can also contact us to get your own building done.
