Common Real Estate FAQs in 2023 That Can Impact Your Decision Making
The real estate market can be quite confusing to the untrained eye.
People are inquisitive by nature, and an agent’s role is to help them navigate the frequently difficult world of house buying and selling. You can also suppose that some real estate-related queries are asked more frequently than others.
Here are some responses to the questions that come up most frequently, whether you’re a first-time buyer or a seasoned buyer who could use a refresher on how deals get done.
What is the first step in buying a house?
For most properties there are usually three major payment options for any type of landed property (be it a house or a land):
The Outright payment option
∙The installmental payment option
∙The mortgage plan payment option
The first step in buying a property is getting pre-approved for a mortgage. Obtaining a pre-approval letter from the lender starts the process off on the right foot. You must first determine how much you may borrow.
Knowing how much you can afford helps you focus your search on acceptable properties, saving you time from looking at houses that are out of your price range. (Having pre-approvals also helps avoid
being disappointed after falling in love with an expensive property.)
Secondly, the amount needed for the down payment and closing expenses will be indicated in the loan estimate provided by your lender. You might need more time to accumulate finances, dispose other assets, or ask family members for mortgage gift money. You will know exactly what is needed financially in each scenario. Being approved for a mortgage also shows your realtor and the house owner that you’re a serious buyer.
How long does it take to pay for a home?
Buying a home takes as long as you want it to take. For outright payments the process may not be longer than 2 weeks. Off plan projects may take longer depending on the stated delivery date by the developer.
Once a property is selected and the offer is accepted, the average time to complete the escrow period on a property varies depending on the developer.
What does “buyer’s market” mean?
A buyer’s market is one when demand is weak and housing prices are falling. Both short- and long-term buyer demand may be influenced by a number of factors, including:
Economic disruption: a large employer suspends operations and fires staff. As interest rates rise, fewer people can borrow the money necessary to purchase a home since the cost of borrowing is higher. As a result, there are fewer potential purchasers available on the market.
Due to increased demand: home prices decline and buyers might discover better deals. Borrowers may temporarily benefit from a short-term decline in interest rates by having more buying power before home prices react to the recent interest rate adjustments.
High inventory: a new subdivision and can create downward pressure on prices of older homes nearby, particularly if they lack highly desirable features (modern appliances, etc.)
Natural disasters: a recent earthquake or flooding can tank property values in the neighborhood where those disruptions occurred.
How much do I need for a down payment?
15% is the average down payment for most development companies in Nigeria. However, that number may vary slightly depending on the type of property in question and its location. The down payment required for returning customers may also differ based on existing relationship between buyer and seller.
Repeat buyers could also use the equity in their current property as a source of down payment money.
Should I go for a site inspection?
Yes! site inspections are required if you plan on acquiring a property. Site inspections are highly recommended because they can reveal defects in the home that are not easily detected. Site inspections bring peace of mind to one of the biggest investments of a lifetime.
What are the factors that affect cost of properties
Prices rise in sellers’ markets as a result of rising housing demand. Here are a few factors that influence demand:
Economic factors: As the local labor economy tightens, more people move in, driving up housing costs before more stock can be developed.
Decline in interest rates: makes homes more affordable and increases buyer interest, especially from first-time buyers who can now afford larger homes as that of the cost-of-living decreases. If purchasers are “on the fence,” a brief increase in interest rates may persuade them to buy if they think the upward trend will carry on.
Low inventory: fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.
In the end, acquiring a property is the wise choice when in search of an investment option that stays reliable over a long period of time.