A Guide for First Time Homebuyers: Navigating Real Estate as a New Professional.
For many new professionals, entering the real estate market is a very important milestone. Beginning the journey towards homeownership whilst exciting, is also terrifying. The following guide is to help professional people make informed decisions regarding the processes and the positives and negatives of entering the market
1. Assessing Financial Readiness
For each individual, the situation is different. It is important to understand all of the expenses around purchasing a home and not only the purchase price. Establishing a clear budget including potential costs for initial outlay and beyond. This may include: downpayment, monthly installments, balloon payment, transfer costs, moving expenses and much more. The costs are also relevant when you have made your move into the new home including amenities, service charges, common fee expenses.
Top Tip: A good rule is to have at least 20% as a down payment. As a new professional, it's important to have a clear understanding of your financial situation. This will allow you to secure better terms on the mortgage, basically the more you put in, the better interest rates you receive.
2. Financing Additional Options
There are an array of options available when buying your first home and once you are in your home. This can include refinancing, extension and repair loans or personal loans. These may be viable options if you wish to repair or renovate your home.
Top Tip: It is always worth exploring first time buyer programmes. They often offer lower down payments and reduced interest rates for fixed terms along with other benefits.
3. What are your Priorities
The search for a home can be a real challenge. Consider the main factors for you and your circumstances when creating a list to narrow down your search. Factors such as proximity to parks, particular school, workplace, transport, shopping may all be important factors for you.
Top Tip: Think long term. Priorities change over time as our lives develop. It is important when buying a first home to think how the home will support your life’s developments. People state that school neighborhoods are highly important when choosing a location. What is important for you?
4. Research the entire neighborhood.
The neighborhood itself needs to be the right fit for your life. You may find your dream home in an area not supportive to your life. Factors within the neighborhood that may be a priority for your consideration may include lifestyle, budget, appreciation, community engagement and other factors such as green spaces and alike.
Top Tip: In order to get the best picture of your potential new home, visit at different times of the day to get an overall picture of the neighborhood. Visiting during early morning, rush hour, evening and night time will give you a fantastic sense if this is the right area for you.
5. Real Estate Agents
Real Estate Agents are the experts in their fields. They have a whole understanding of the needs of their clients and can be an extremely useful resource with their expert knowledge. They can assist in navigating the market and offer suitable homes that you may not find alone. They can also help you negotiate the best deal.
Top Tip: Choose an agent you are comfortable with and you feel supports your needs. It is sellers that pay the commission to Agents in Thailand so in order to get the sale with you the agent will do all they can to fulfill your needs. Always remember that prices are negotiable.
6. Schedule Viewings and Attend Open Houses
Scheduling private viewing of course goes without saying. Visit each property to see how it meets your needs. If there are show units or open houses, these events can really help you understand your future home.
Top Tip: For each home visit you do, make notes of the key priorities you have set. When you view lots of homes, it can be a challenge to remember the key details of each one.
7. Making an Offer
When you have found the one, the place that will be your home, you have to try to achieve the price you are happy with by making an offer. You can get advice from your real estate agent to make a fair offer price. Negotiations can then take place to see if a deal can be made.
Top Tip: Making it personal can really help. Writing a letter to the homeowner about why you love it so much may make your offer stand out even more.
8. Conducting a Home Inspection
It is not compulsory to have a home inspected before purchase in Thailand however it is highly recommended. It will ensure that the property is in good condition and will highlight anything that you may have concerns about. The Agent may have a company they work with regularly to inspect the home. If issues are found, further negotiations can take place.
Top Tip: If possible be present for the inspection and ask all and any questions that you have. This will help you understand your new home even further.
9. Future Planning
When planning for the future many factors should be included. You may wish to consider your career path, partner, family growth and also investment return. Different areas have different levels of price inflation and are always worth noting. Buying a home is normally the largest purchase of anyone’s life. Making sure that your asset grows with you for your future is essential.
Top Tip: Choose a home that can offer potential for your life goals. Whether through location, flexibility for renovation or space for future family size. Thinking ahead will keep you upfront.
Conclusion
There is no greater experience for any professional buying their first home. By exploring all options with your own budget and financial options and using the support of a trusted Real Estate Agent, you can explore and navigate the real estate market with confidence. With all of this in mind you can find your perfect home.
