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A Checklist for Buying a New House

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Published on November 10, 2021. EST READ TIME: 3 minutes

Finalizing your dream home requires due diligence from your end. Several tasks associated with buying a home include identifying the budget, zeroing on the location, finding a good realtor, negotiating the price, taking care of documentation, choosing the right home insurance, etc. Here is a checklist that would help you navigate smoothly among the various steps involved in the process of buying a house.

RERA Details

The Real Estate Regulatory Authority (RERA) was established in May 2016 under the Real estate (Regulation and Development) Act 2016. The regulatory authority was established to sort out the problems affecting the real estate sector. The main idea behind the inception of RERA was to introduce accountability and transparency in the real estate sector. RERA rules are set at the State level and the governing body is responsible for regulating the following

- Transactions associated with the buying and selling of real estate.

- Commercial and residential properties registrations and approvals.

Know your taxes

There are several additional costs including multiple taxes that need to be considered when planning to buy a house. Goods and Services Tax (GST) for under-construction properties, property tax, registration charges, etc. make up for the additional amount that goes to government coffers when you plan to buy a property.

Location

Location is the only thing that cannot be changed once you have bought the property and hence needs to be evaluated carefully. Accessibility is the keyword when assessing the location of your new house. Ease of accessibility and a good neighborhood can help a great deal even if you plan to rent the home in the future. From day-to-day requirements such as a marketplace for buying groceries to the facilities such as health institutions, educational institutions, and connectivity options, all goes into consideration when finalizing the location.

Property price

Discernment is the cornerstone of wise decisions. Detailed analysis of the market and property price trends research can be crucial to ascertain the right price of the property. Moreover, buying a house is an investment you make for the future. Studying the property price appreciation and depreciation history of the area can give you key insights. Knowledge of the price trends can help you determine the worth of the property and predict the returns on investment in the future.

Documentation

As a home buyer, it is vital to ensure that all the property documents from a builder or previous owner of the property are in place to avoid any last minute hiccups and save you from any legal hassles in the future. Documents such as RERA certificate, No objection certificate, structure plan, registration, approvals, etc. need to be verified before you initiate any transaction.

Talk to Mortgage Lenders and Get a Mortgage Pre-Approval

Producing the right documentation can be a laborious task but preparing in advance ensures that it goes smoothly. If you are planning to take out a mortgage to buy the house, it is prudent to talk to lenders to save time. The loan approval process can be time-consuming and prone to rejection if the borrower is unable to submit the required documentation. Getting a mortgage pre-approval letter from a lender helps establish your earnestness as a buyer.

Find a Realtor or Real Estate Agent You Trust

A realtor you trust can act as a guiding hand to help you overcome any obstacles you might face. Being an expert in the field of real estate, a realtor can provide you with crucial information, make suggestions based on your needs, and can help to find your dream home. The best way to find a real estate agent you can trust is to look for recommendations from your trusted friends and family. A good agent can be useful during the negotiation process to make sure you do not have to shell out extra bucks.

Know your budget

Determining your capability to pay is the first step in your quest for finding your dream home. Knowing your budget at the early stages saves a lot of time and helps you focus on the properties that fall in the price range you have set for your home. So, set your budget in a manner that the loans EMIs do not impact your lifestyle. Important expenses such as home insurance, maintenance costs, etc. need to be factored in when deciding on the budget.

Negotiate

The art of negotiation is an important skill to have when buying a new house. To and fro of offers and counteroffers can get a bit taxing. Listen to your real estate agent when submitting your offer as their expertise in the field can help you determine the right price for the property.

Conclusion

Buying a home can be an enormous task that requires a lot of effort and time. If you are a first time home buyer, the whole process of buying a home can be a bit overwhelming. The points mentioned in the article above would help you make an informed decision when finalizing your dream home.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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