5 Steps To Buying a House, According to ‘Property Brothers’ Jonathan Scott
Jonathan Scott knows a thing or two about buying a home. One half of the “Property Brothers,” the long-time HGTV star is a real estate expert with a wealth of knowledge to share.
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If you’re thinking about buying a house, you might want to take some of his advice.
Here’s a look at five steps he’s shared about home-buying that may help you through the process.
Wait Until Your Finances Are Ready
It can be tempting to buy a house before you’re truly financially prepared to do so. You might feel like you’re missing out by waiting, but Scott told CNBC moving too soon could cause you to make an unwise investment.
He said it’s much better to spend a few years getting your finances in order, instead of making a move rooted in desperation. This can help you avoid buying a home that needs extensive updates — when you weren’t looking for a major fixer-upper — or opting for a sale price or interest rate that doesn’t truly fit your budget.
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Know Your Price Range
It’s easy to go into the home buying process with a clear idea of what you want. However, that doesn’t necessarily mean it matches your budget.
Therefore, it’s important to determine your budget before you start looking. Doing so can help manage your expectations, Scott told CNBC.
To find a house in your price range, he said you may have to compromise on key items like location, size or amenities. Getting on the same page as your price range from the start can help you save time and avoid disappointment.
Get Creative
Depending on where you live, the current real estate market might not be the easiest. To achieve your dream of becoming a homeowner, Scott told CNBC you might need to get a little creative with your approach.
Specifically, he said you might consider buying a home with friends or family members — beyond your spouse — to breach any barriers to entry. This could allow you to qualify for a mortgage and make the payments more affordable.
Don’t Try To Time the Market
You might think you need to wait to buy a home until inventory is higher or rates go down. In some cases, this might be true.
However, if you get a good price on the home you want, you don’t need to worry about what’s happening in the market, Scott said in an interview with Realtor.com. In the current market, he said it is important to make sure you’re not overpaying and that you have some flexibility, so you have money left in case you need to make improvements.
Anticipate Future Needs
You might be tempted to purchase a smaller home, with a lower price tag, but Scott believes this can be a mistake. If your family grows and you need to move again in five years, he said you’ll have to pay fees like real estate commission, lawyers and transfer taxes, which can be substantial.
Therefore, he recommended finding a home you can grow into. He said this can involve a property with currently unfinished spaces that can be completed.
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