Five Mistakes to Avoid as a First Time Home Buyer | Bahamas Real Estate
Purchasing your first home can be a challenging and confusing process. The best thing you can do is your due diligence, educate yourself and be aware of common mistakes so you can avoid them. Here are five tips to help you along the way!
Underestimating costs involved
Keep in mind your down payment is not the only cost you have to be aware of. Closing costs include legal fees, Stamp Duty and Real Property Tax, which can really add up. Additionally, if you are seeking to purchase in a gated community, Home Owners Association fees (HOA) will also be applicable. Other expenses including appraisals or home inspections fees might also be necessary. Speak to your key players, for example, your real estate agent, attorney and financial lender to get the full picture. Budget wisely!
Searching for a home before a mortgage
It’s so disappointing to fall in love with a property or home that is out of your budget. While visiting different lending institutions is not as fun as house hunting it is prudent to know how much you qualify for. Speak to mortgage professionals and get pre-approval before seriously looking for your new home. In addition to giving you a clear picture of what your finances will look like, it will also show sellers that you are serious.
Not asking questions
Purchasing your first home will likely be one of your biggest investments and shouldn’t be taken lightly. Your real estate professionals are here to guide you. Use them and ask questions.
Contingencies in the contract
Double check that all agreements are clear and contain all necessary information. For example, if you are financing your purchase, ensure that a that the real estate offer letter and Agreement for Sale are subject to a financing clause. Additionally, ensure that your offer letter is subject to a formal agreement for sale that is reviewed by an attorney.
Assuming the house is sold as is
It is important to know what exactly you are purchasing. As a buyer, you should be clear on what is included in the purchase price. Should any existing furniture, appliances and other effects be included in the purchase that they are agreed upon in the offer letter and Agreement for Sale.
For more information on how best to approach buying a home, whether you are a first-time buyer or new to The Bahamas please give me a call: