Buying a house/condo/place to live is perhaps one of the biggest things you will ever do in your life. There are a few dozen things you must consider before signing the contract, from the neighborhood to the structure of the place.

The following tips and considerations are only a few of the most important things to think about. They should always be in your mind from the beginning of the process to the end.

1. Consider your finances

So this probably warrants a “duh” but believe me, I have seen people who buy something outside of their price range thinking they will get that raise next year or they will make it somehow.

Chances are if you can’t afford it now you won’t afford it in the future. Think cutting back on luxury items will help you afford the new place? Try cutting back for a few months to prove to yourself that you can and to see if you really will have enough money.

2. Prepare for future finance problems

Along the same lines as tip #1, plan for future problems or troubles you might encounter. For example, if you lose your job or if you need to make a ‘special payment’ one month. A special payment can range from medical to surprise bills.

It has been suggested to me to always have at least three months of rent in the bank in case of emergency. This should be the same for mortgage. Keep at least 3 months aside so that if anything happens, you will be prepared.

3. Check out the neighborhood

You might have found a great place but does the neighborhood suit you?

For example, are the grocery stores close and are there buses if you don’t own a car? What are the city services like? What are your neighbors like? Is it kid friendly, if you have children/planning on having children?
4. Get it inspected

This is perhaps the most important tip. An inspection will find anything wrong with the place you are about to buy so that surprise repair problems won’t pop up in the future. It will also avoid you paying more than you should.

For example, are there 5,000$ of repairs to do? You might be able to get this deducted from the sale price.

5. Goals

It might be a good idea to have a clear, defined picture of what you want or, chances are you might get overwhelmed thinking “This place is great. And so is this one. But this one is also amazing.”

I would search for places with a fireplace, central air and a nice backyard. In the end, this specific wants will help me narrow my search. Take a sheet of paper and take your time. Write down everything you need.

6. ” Investigations “

Ask yourself, or even the seller, why they want to sell. Is it because there are a lot of repairs to do? Or are they relocating? This could help pinpoint anything they are trying to hide from you. It will also help you decide if the place is the right place for you.

Also important to ask is how long the place has been listed. If it has been listed for awhile, there might be a problem with the place, or they might be taking advantage of you with the price.

7. Eyes wide open

Inside and outside. From the fences and shed to the basement. This will give you an idea of what it will be like to live in it and you might even find problems or things you don’t like which will sway your buying decision in the end. Also, it will avoid surprises in the end, for example finding the fence needs to be repaired.

These seven tips will help you find and buy that perfect place for you, and maybe even your family. It is a long process and there are a lot of things to think about. However, it is better to know now, before buying, the kind of problems you might encounter, for example hidden repair problems. Buying a place to live isn’t something to rush into. Get all the facts first.

photo by jsdart