Buying your first home is one of the biggest financial decisions you will make in your life, and likely the most expensive one you’ve made up to this point. But it can also be one of the best financial decisions you ever make in your life. Where and how does one go about finding a great deal? It depends. You may negotiate a price that’s cheaper than market value or find a sweet deal because the home is located in an underappreciated area. Or perhaps you have the ability to jump on an underpriced property as soon as it hits the market or — better yet – before it hits the market. A seller underprices for a variety of reasons.
A bit of advice: Check your emotions at the door and know when to say no and walk away. Too many first-time home buyers fall in love with a place, end up focusing on the wrong things (new granite countertops, that beautiful Juliet balcony, etc.) and starry-eyed fail to negotiate as much as they should (or could). You get 5 percent off, feel like you’ve won the jackpot and voila you bought your first home. A new investment for you to be proud about!
Sure, you don’t have to consider your first home an investment, but why wouldn’t you want to? Through just a few additional hours of searching and home tours, you could make some additional money if you sell one day.
There are few easier ways to make money than in real estate and buying your first property is the perfect time to start. While it’s definitely not guaranteed that you will make money when you sell your home, it’s the only type of investment you can hold and also live in! So, before you head out there, do your homework.