More and more people are buying a house for their family. According to data from the National Association of Realtors, existing-home sales reached the highest level in 2021 since 2006.
However, buying a home is a big deal for many people. You’re taking on the responsibility of being a homeowner, which can be scary. But if you prepare yourself and have an agent in your corner who knows what they’re doing, you’ll feel confident when it comes time to make an offer.
Here’s how:
Why first-time home buyers are nervous
First-time home buyers are often nervous because they’re new to the process and have no idea what to expect. They also may be worried about making a mistake or being ripped off by an unscrupulous seller.
Another primary source of anxiety is financing. Most home buyers may feel anxiety due to mortgage loans and the debt that comes with them. According to a survey by Nonos Research, only about 42% of Canadians feel confident about their economic outlook.
There’s also a flow of mixed emotions passing through your brain, making you nervous while buying your first home. Also, there is an abundance of paperwork related to buying a house, which makes the process challenging.
How to overcome home-buying anxiety
While there are many reasons why you might feel nervous while buying a new house, there are also many ways to overcome the problem. Here are some of the ways to overcome home-buying anxiety.
Get a Pre-Approval Letter
A pre-approval letter is a document that shows the lender’s approval for you to buy a home. It demonstrates that your financial situation is stable and you can afford the home. This does not mean you will get a mortgage, but it is one of the first steps to getting approved for a loan.
Getting a pre-approval letter can be a significant booster for your mindset. Financial anxiety is something that comes naturally when making large purchases. With a pre-approval letter, you will feel relaxed that your financial condition is stable and that the mortgage loan approval process will become a little easier. This will ensure that you don’t feel anxious, at least financially.
Look through listings
The first thing you need to do is select an area where you want to purchase the house. When choosing this, consider buying a new home as an investment. Try to opt for a location that can get you high returns on your investment. For example, Calgary is an excellent housing market.
According to the data, detached home prices increased by 6%, and semi-detached house prices increased by 18% year-over-year in Calgary. The story is almost the same whether it is North East (NE) Calgary, North West (NW) Calgary, or South Calgary.
Once you’ve identified the area you’d like to live in, it’s time to search for listings. You’ll want to do this in person and online. Have your realtor show you around and explore on your own. You can search online for a home for sale in Calgary, NE. This will show you all the listings of houses in North East Calgary. Similarly, you can look for places for sale in your selected location.
Look at listings on a map first. You’ll get a better idea of what’s available in the area and be able to narrow down your search before diving into what’s out there. Once you’ve identified which neighborhoods are good fits based on your criteria and budget, start looking at specific homes in person or online.
Know your Budget
Your first-time home-buying anxiety may be exacerbated because you don’t know what’s in your budget. You might think that you can afford a $200,000 house and still save money toward retirement and college tuition, but if this is your first time buying a house, it’s helpful to consider a few factors before deciding on how much to spend:
- How much will the house cost? This includes both down payment and monthly mortgage payments. Considering renovation costs if you’re looking to buy an older home or one with some updating needed. According to an article in CBC, the average house cost in Canada is over $816,000. This can vary significantly based on the property’s area, neighborhood, furnishing, etc.
- What extras will I need? Some extras include closing costs, insurance premiums, and utilities like electricity or water bills for the new home, and remember to add these up before making any final decisions about how much money per month you’ll have left over after moving in.
- How will this affect my financial goals? Make sure that whatever decision you make regarding who moves into the new place won’t hurt other areas of your life, especially if those areas are important ones like retirement savings accounts.
Work with a Real Estate Agent
Working with a real estate agent is hugely important. An excellent real estate agent should know the market inside and out and be able to find you houses that fit your budget, needs, and location. A great real estate agent will also help negotiate the best price for you.
A good real estate agent will also walk you through all the paperwork involved in buying property, from finding a house to making an offer to closing the house and ensuring everything goes smoothly on both ends.
If you like the home, make an offer to buy It
You’re not married to the home. It doesn’t even have to be your favorite home in town. The only thing that matters is if this is your dream house. If it is, then make an offer on it. But don’t just throw out a number and hope they accept it. Make sure your price is fair and reasonable by researching comparable sale prices in the area.
If they say no, don’t panic yet. There’s still a chance for them to change their mind later down the road when more buyers are interested in looking at their property again or another buyer offers them less money than you did.
Conclusion
And those are a few ways to conquer your first-time home-buying anxiety. They say that facing it head-on is the best way to overcome fear. So go ahead and take a deep breath, push yourself out of your comfort zone, and start looking for your dream house today.
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