Things you need to know about home-buying

Buying a home is certainly one of the most rewarding experiences you can ever have. If you’re buying for the first time, the process may seem overwhelming. And even if you’ve been through it several times, the experience is peculiarly not so much like the last time, always posing new challenges and calling for new moves.

Leasing offers a lifestyle that’s nearly maintenance-free. That may appeal to you, especially when you don’t have to stay in that location for good. But if you want to keep the place, consider that renting offers you no equity, not-tax benefit, and most likely no protection against regular rent increases. If you rented your place at an average of P20,000 a month for the last 10 years, you’ve spent P2.4 million without anything to show for it.

You actually have financing options of you don’t have enough cash reserves at the moment. If the property you’re eyeing is still with the developer, you can inquire about in-house financing schemes, which come in different payment terms with very reasonable interest. You can also source out funding from state-run agencies such as the Government Services Insurance System (GSIS), Pag-Ibig Fund and the Social Security System (SSS), or through a housing loan from a bank, all requiring more or less 30 percent equity of the property. Family members, relatives, and even close friends can also extend help, either by way of referral to lending institutions or doling out the needed amount straight from their own pocket.

Always remember that your decision should be contingent on your source of income. Don’t get a financing package that will drain your savings and income, eventually leaving you in the pit with nothing. Most business people opt for in-house or bank financing schemes while salaried employees normally feel convenient at getting assistance from GSIS and SSS. Those who go to their relatives and friends usually consider their erratic cash in-flow, usually due to their contract-bound or commission-based earnings.

Starting house-hunting on your own

When you start looking for a house, you can list down a number of requirements. You can begin the listing by focusing on three major aspects, namely location, personal tastes, and budget. If getting a house is an urgent necessity, you will need an agent’s help in finding possible prospects. Given a very limited time to hunt yourself, an agent’s expertise and market knowledge can help you obtain right away the most number of quality choices. However, if you buy for investment, you can take time doing research, surveying target locations, browsing real estate magazines and classified ads, calling leading developers and real estate practitioners in the locality. The more knowledgeable you become, the better your final decision will be.

Getting professional services

One clear advantage of having a professional real estate broker is that you don’t have to go through it alone. Professional salespersons have the skill, the know-how, and the experience to help you through each step, and make the process of finding, buying, and moving into your new home as smooth, quick, and enjoyable as it can be.

Another advantage is that an agent represents a valuable source of information about market trends, communities and neighborhoods, and especially, home for sale throughout the area. Remember, not every home seller runs an ad in the local paper or puts a sign up in the yard. An agent offers you market’s expertise augmented by access to complete, regularly updated information about every home listed by area agents. As you go through the many aspects of buying properties, you will realize that professional expertise and services are of considerable help throughout the buying process.

Looking for the rigt agent

Even before you realize it, there are legions of qualified agents to choose from. But you must net to get not just a "qualified" broker, but one who is "right" for you. Not all qualified agents can do wonders for you by giving you a complete information about the place, much more inventories of available properties in the area, and all the services you will need. On top of it all, the "right" agent instinctively understands your wants, needs and individual tastes and at the same time shares with you certain values affecting your choice of a home.

Real estate agents are actually of two kinds: the "seller’s agent" and the "buyer's agent." The two differ in that the former is more inclined to secure the best price for the selled and report your off-the-record comments to the seller, such as your willingness to pay a higher price. The latter, however, puts your best interest as a buyer on top of everything and keeps your input as confidential as it should.

Viewwing a house

When viewing a prospective house, you should not just rely on your agent if you have one. It's a good to bring with you a notepad and pen for note-taking, flashlight for seeing enclosed areas, and a measuring tape for checking room sizes and clearances. Things to note include the number and size of rooms, kitchen orientation, floor plan, storage space, orientation, water supply, electricity, rough sketch of the house. Note-taking is very helpful especially when you are about to decide which option to take as it will summarize and compare details of your prospects. a digital camer can also be of big aid in this regard. Don't hesitate to ask questions to your agent, more particularly about the things you feel are potential "problem" areas.

Home inspection, final walk through/punch-listing

Though this can be unnecessary sometimes, a home inspection is helpful to check out on things you may have overlooked in your earlier visit/s or aspects you aren’t knowledgeable about, like electrical systems, structural configuration, plumbing, etc. The inspector expectedly turns in a report with advice whether or not the property is worth an investment.

Final walk-through is done immediately prior to closing to make sure that your agreement on certain improvements or changes, such as removing attached furnishings, has been accurately and thoroughly followed. Always bring with you your previous notes, or the list of things to rectify. Punch-listing is so much like the walk-through exercise, except that the transaction has already been closed and that the unit is now ready for turn-over. There is a prepared written notice that you will have to sign, saying that you agree that the seller has met all the physical requirements in the unit.