First-Time Homebuyers: 5 Essential Tips

August 8, 2022by REDOC0

What are first-time homebuyers?

First-time homebuyers have not owned a home before. But the definition of first-time homebuyers is broader than you might expect. You could also qualify as a first-time homebuyer if you have been a homeowner in the past – as long as you haven’t owned a home for at least three years.

Who is considered first-time homebuyers?

The true definition of first-time homebuyers is someone who has not owned a home before, or in the last three years.

Buying your first home is one of the most meaningful and long-lasting financial decisions you will ever make. It’s a major step in many people’s lives, and this is why it’s necessary you understand the possible hurdles of the home buying process.

Being aware of all the options available to you, whether it comes to choosing the right house that fits your budget, choosing the right agent – or realtor –  if getting a mortgage would be advisable, will help you make a sound decision for you.

Challenges first-time homebuyers encounter:

  • Finance
  • Location
  • Pricing

FINANCE

First-time homebuyers are not people that have savings that allow them to make outright purchases; they have no options but to lean on mortgage rates or Private loans to finance the house purchase.

LOCATION

Location is one of the challenges most first-time homebuyers face in their search for a property that represents their value, especially in Lagos and Abuja. Getting a housing property that is close to their place of work is hard to see, especially in these two cities.

PRICING

Things are quite expensive, or you’d agree a little bit inflated at the moment. This poses a threat to first-time home buyers because they will have to pay extra for a property than normal. The price of assets within 20 min to 1hr stretch from any central business district (place of work) is really high, which might restrict them from buying their dream property.

Read also: What is Real Property?

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5 tips for first-time home buyers

5 tips for first-time homebuyers:

  • Budget
  • Property type
  • Location
  • Housing Agent
  • Property Documents

BUDGET

Having a budget plan is very important for first-time homebuyers. This will enable you to focus on properties that you can actually afford, areas within your budget, or houses that are under mortgage financing. If you need to buy a mortgaged house, first-time homebuyers also need to consider their monthly income and expenses. Also included in the budget plan should be the agent fee depending on the seller and agent agreement.

PROPERTY TYPE

What kind of house can I buy with my budget?  This is the next question to consider for first-time homebuyers. Whether it is a government or private housing scheme; single-family home, flat, duplex, semi-detached or terrace, and many more, your answer should serve as a guide to getting your dream property.

LOCATION

First-time home buyers should examine the location. For instance, those in Lagos will want to consider areas with good security, less traffic, access to your office, schools, places of worship, good roads, and many more.

HOUSING AGENT

First-time home buyers should make sure they get a good housing agent. Because it will save them time and make the process easier.  Some people think they can do this alone. However, it is advisable to do this with a reputable agent, preferably a registered company house agent. This is to ensure they can easily be reached in case any issue arises. An agent’s network, knowledge, and understanding of property markets will go a long way in helping first-time home buyers.

PROPERTY DOCUMENTS

First-time home buyers should also ensure the chosen property of their choice comes with the right land documents. Regardless of having a house agent, it is crucial to educate yourself on the various types of house documents. This is to ensure that the property follows the government building plan and is also not built on government land.

Read also: Why Real Estate Is the Real Market

WHAT ARE THE ADVANTAGES OF FIRST-TIME HOMEBUYERS?

NO MORE WASTED RENT

Buying your own properties means investing in equity rather than it going to your landlord’s pocket. Your monthly income will solely be going into different things that matter to you.

FREEDOM TO FINALLY MAKE THAT PERFECT FAMILY HOME A REALITY

The property will be completely yours, so you can make whatever changes you want to. It will give you the freedom to show off your interior design skills and make your home dreams a reality.

 

CONCLUSION

Endeavor to go through these processes, in order to not get scammed or end up getting a house that you would later blame yourself on.

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