Before You Buy Home? Don’t forget the required due diligence!!
When buying a home, it’s easy to let emotions get in the way of reality, or get sudden amnesia about factors that may make a difference.
"Sometimes we want something so badly, we’re not willing to ask all the questions we should,” says Leslie Levine, author of "Will This Place Ever Feel like Home?"
Buying a house might be the biggest investment that you make. Whether you are buying your first house or your fifth house, buying a home is always a learning experience. The best preparation is knowing what you want, having your finances in order and having a good team of people working. So please take all the precautions do the required homework. The decision to buy a house requires a significant commitment of finances, time, energy and emotional stamina. Before you contact a real estate agent, you (and anyone else who will live in the house with you) need to think through a number of considerations.
Here are some questions that you must ask to have a safe housing transaction.
Does the property have clear title?
Do not buy a property if the title of property is not clear. If title is not clear or marketable it will cause problem in future as financial institution refuse to finance such properties. Sick the assistance of your lawyer or approach financial institutions to know whether the title of the property is clear.
Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
Are all Documents in place?
Ask the builder whether he has all the documents relating to the property. Also ask for copies of original documents and get them verified by your legal advisor or lawyer. It is always better to take the help of a property lawyer. The cost is negligible as against the cost of the flat.
Get pre-approved for a mortgage or home loan before looking for a home.
Getting a pre-approval is quite easy, and can give you complete peace-of-mind while shopping for your home. Your local home lending institution can provide you with written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for.
Consult with a mortgage expert
Consider dealing only with a mortgage professional who specializes in mortgages and home loans? Obtaining their services can make a significant difference in the cost and effectiveness of the mortgage you get. For instance, they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to enquire
Factor in all the expenses.
Consider cost for property and other expenses incurred for property buying. The buyer is informed always bout the marketable rates. It is necessary to check on the other cost involved while buying. Cost of property is not rate of property but also includes other costs. Some of the important costs incurred for buying a property are floor rise , parking charges, registration fees, stamp duty, service tax and notary cost or legal cost. Also ask clearly for the terms and conditions for the payments. Mostly the payments are linked to the construction work and the floor level reached. One should also enquire about the maintenance cost per square feet and when the actual payment of such cost starts.
How do I select the right Real Estate Agent?
Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.
Water and Power Supply
Please ask the builder whether the property you are buying has
adequate water supply and there is no problem of power such as voltage fluctuation, power shortage etc. Voltage fluctuation can damage your home appliances. Put stress on water and power. Ask the builder whether the property has no authority or government claiming for it and check whether land is designated for residential purpose. Also ask the builder for access roads and nearby facilities. Although the job of the government to provide for roads, ask the builder if there is a plan passed by the municipality for such access roads.
Facilities
Ask the builder for the internal facilities like lift, garden, parking, swimming pool, club housemate that he may have advertised. Ask him the time he would take for providing the same. Most builders are was busy selling their flats and leave the part of building these additional facilities for much later-which in most cases is forgotten. Also ask for the charges that one has to bear per square feet for such facilities and whether parking is free or charged. One can also ask for any infrastructure work that is going to come in the vicinity like the metro, school, airport, temple, college, theatre, etc. This might hamper your decision or supplement it but it helps if one knows it in advance.
Does renting cost more than owning?
Sometimes you can find a house that is actually cheaper to own than the place you are currently renting. If you are purchasing a house purely for the sake of less cash outflow each month, be sure to consider all the costs of ownership: mortgage, insurances, maintenance, snow removal, etc. If you still find that owning is more cost effective than renting, go for it.
Construction and Quality
Ask the builder about the construction quality of the building. Most buildings today have RCC work done. Ask the builder about the last few projects done by him and check for problems for leakages, cracks paint, lift other issues. For a bigger society, also check for internal drainage and if the society is located near a nullah, then for a check its quality. Also check for the sample flat. The sample flat can be a good indication of the general quality, space usage and other details. But also check for and ask about the quality of the internal walls, bathrooms and kitchen flooring, sink etc. Ask whether the flooring in the sample flat and the actual would be the same also whether the grills, paint, taps, bathroom gadgets like showers, Jacuzzi, tub, geyser etc. would be done as per the sample flat showcased. Also ask for the final date of possession. While finally buying also see whether most of the other points about the things that are promised are also written down into the sales agreement between the builder and the buyer.
Note:- This all information from us.But before buying any property please consult to your lawyer.
