The Nashville Real Estate market is booming and it can be overwhelming, especially for a first time home buyer. Buying a home isn’t an easy decision and should be given a lot of consideration beforehand. But fear not! We’ve outlined the following seven tips to help set you up for success while you look for your first Nashville home.
1. Figure out what your limit is (and stick to it!)
When buying a home, you shouldn’t necessarily buy at the top of your approved home loan. Why? Because it’s best to plan for other homeowner expenses, such as property taxes, insurance, and possibly HOA fees. Plan to keep your mortgage payment no more than 28% of your entire salary.
2. Research available loan programs
In addition to federal loans, check HUD.gov for state programs you might qualify for. Some states offer homeowner courses that allow the buyer to receive money towards closing costs. Winning!
3. See the neighborhood
Focus on a neighborhood that fits your lifestyle. If you have kids, pick one with a great school district. If you want to walk to and from restaurants and shopping, choose a downtown or historic area. Listen to your surroundings too! If you hear dogs barking, you’ll likely hear them once you move in.
4. Understand the art of negotiation
Just because another bidder goes in with a higher offer doesn’t necessarily mean you have to. If the home has a unique feature that most buyers would immediately take down, consider letting the owner know you plan to keep it and offer a little below the asking price. You never know!
5. Budget for furniture
This is a big one! Some homeowners forget to factor in furniture costs and end up sitting on the floor to eat dinner… don’t be that person. Real estate professionals estimate it could run you 25% of the cost of the home to fully furnish it. Happy spending!
6. Look into home-warranty plans
Always purchase a home warranty if you can! While this is separate from home insurance, it’s definitely worth every penny. You can expect it to cost a few hundred bucks annually, but it’ll cover repairs for the heating system, air conditioning, the water heater, and appliances. That extra cushion is always nice!
7. Decide how long you’ll stay
If you don’t plan on staying in your new home forever, don’t forget about the cost of eventually moving. If you’re not in your new home for at least five years, you may not have enough equity to cover fees such as closing costs and a home inspection.
Have any questions about first-time home buying? Contact us at 615.807.0579 to learn more! Click here for a list of great options for your Nashville home!