2750: How To Be Financially Savvy When Buying A Home by Lisa Harrison of Mad Money Monster on Financial Decisions

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[00:00:26] [SPEAKER_01]: This is Optimal Health Daily. How to be financially savvy when buying a home.

[00:00:31] [SPEAKER_01]: By Lisa Harrison of MadMoneyMonster.com and I'm Dr. Neal Malik.

[00:00:36] [SPEAKER_01]: Hey there and welcome to another Sunday bonus episode where I share an article from one of the other podcasts in our network.

[00:00:43] [SPEAKER_01]: Today's post comes from Optimal Finance Daily where articles covering everything from saving to budgeting to investing and more are read to you every day.

[00:00:53] [SPEAKER_01]: You can find Optimal Finance Daily wherever you're hearing this.

[00:00:57] [SPEAKER_01]: So with that, here's Diana with the post and commentary as we optimize your life.

[00:01:07] [SPEAKER_00]: How to be financially savvy when buying a home by Lisa Harrison of MadMoneyMonster.com

[00:01:14] [SPEAKER_00]: Buying a new home is exciting but it's also a challenging time.

[00:01:18] [SPEAKER_00]: It's such a huge investment for both you and your family that you want to make sure you get it right.

[00:01:23] [SPEAKER_00]: There's so much to consider from location, what schools are close by, transportation, your budget, and whether the home is worth investing in.

[00:01:30] [SPEAKER_00]: It can seem like a bit of a minefield so here's some advice to get you started.

[00:01:35] [SPEAKER_00]: It's good to have an idea of what to look out for and how to invest your money in the right way.

[00:01:40] [SPEAKER_00]: There's so much advice out there that it can be difficult to know who to listen to and where to put your money.

[00:01:45] [SPEAKER_00]: So here's some great ideas to get you started.

[00:01:48] [SPEAKER_00]: Start saving.

[00:01:50] [SPEAKER_00]: This applies to all those couples or families that are renting and want to get onto the property ladder as soon as possible.

[00:01:56] [SPEAKER_00]: Everyone needs to save for that first down payment.

[00:01:59] [SPEAKER_00]: There's no easy way around that.

[00:02:01] [SPEAKER_00]: The sooner you start doing this, the sooner you can be on your way to having a brand new home.

[00:02:05] [SPEAKER_00]: By saving for a down payment, you can avoid lots of extra charges that come with buying a home.

[00:02:10] [SPEAKER_00]: It might be difficult to save for many young couples, but anything you can manage will help in the long run.

[00:02:17] [SPEAKER_00]: Shop around.

[00:02:18] [SPEAKER_00]: The best way to get the most out of the home and the mortgage is to shop around.

[00:02:23] [SPEAKER_00]: Realtors and sellers might try to pressure you, but there's no need to spend your money on the first thing that comes along.

[00:02:30] [SPEAKER_00]: Shopping around will ensure the best deal out there, and as you discover more and more options for yourself,

[00:02:35] [SPEAKER_00]: you'll learn what is a good and bad purchase.

[00:02:37] [SPEAKER_00]: This knowledge builds up over time when you have your eye on the market.

[00:02:41] [SPEAKER_00]: Whatever sellers might say, trust your gut and don't rush things along.

[00:02:46] [SPEAKER_00]: Much can be said about buying at the right price.

[00:02:48] [SPEAKER_00]: While some people actively wait and try to time the real estate market, it's not essential and can be nearly impossible.

[00:02:55] [SPEAKER_00]: Waiting for prices to change might work for some people, but if you find something you like at a fair price, it's best to purchase it straight up.

[00:03:03] [SPEAKER_00]: Perform a thorough home inspection.

[00:03:07] [SPEAKER_00]: Real estate agents want to sell their houses, and they need to because it's their job and that's how they earn an income.

[00:03:13] [SPEAKER_00]: They might overlook certain things or leave things out when showing you around, so you have to check things out for yourself.

[00:03:20] [SPEAKER_00]: Look in every room of the house.

[00:03:22] [SPEAKER_00]: Open the cupboards.

[00:03:23] [SPEAKER_00]: Turn on the taps.

[00:03:24] [SPEAKER_00]: See if the shower works.

[00:03:25] [SPEAKER_00]: Inspect the heating system and boiler as well, as these are often hidden in storage areas and basements.

[00:03:31] [SPEAKER_00]: Asking questions and looking at everything yourself will help you spot if there are any problems with the house.

[00:03:36] [SPEAKER_00]: This will save you a lot of money in the long run, as there could be issues that you have to fix after you buy the place.

[00:03:42] [SPEAKER_00]: It's highly advisable to hire a professional home inspector to do this for you.

[00:03:47] [SPEAKER_00]: Getting someone to survey the house before you submit a purchase offer can prove to be a really smart move.

[00:03:53] [SPEAKER_00]: Paying for an inspection typically costs around $400 to $500, but it will be worth the expense to know what issues the house has before you buy it.

[00:04:03] [SPEAKER_00]: Use your head.

[00:04:05] [SPEAKER_00]: While it's great to be passionate about a home because you're going to be living there, it's also important to not overlook the bad parts.

[00:04:12] [SPEAKER_00]: Making a smart purchase is always better than making an emotional one.

[00:04:16] [SPEAKER_00]: If you buy a property because you love it, it's easy to overlook issues or not see things that could be problematic down the line.

[00:04:24] [SPEAKER_00]: Paying for a professional home inspection will allow you to see things through someone else's eyes,

[00:04:28] [SPEAKER_00]: and that can be hugely beneficial when you're making the biggest purchase of your life.

[00:04:34] [SPEAKER_00]: Consider renting first.

[00:04:36] [SPEAKER_00]: If you're moving across the country or even abroad, get to know the area before you spend your money on a home.

[00:04:42] [SPEAKER_00]: Whether you're moving for work or retiring, get to know the place you're moving to.

[00:04:46] [SPEAKER_00]: Renting for a while is a great way to do this.

[00:04:49] [SPEAKER_00]: It's possible to do short and long-term rentals.

[00:04:52] [SPEAKER_00]: Renting is a fantastic choice to get to know what you really want from a home in a particular corner of the globe.

[00:04:58] [SPEAKER_00]: Moving to an entirely new place can be daunting, so don't rush yourself.

[00:05:03] [SPEAKER_00]: Buying a new home is an amazing but also very challenging venture.

[00:05:07] [SPEAKER_00]: Everyone wants to make good decisions with their money, and here are some great ideas to get you started.

[00:05:12] [SPEAKER_00]: It's essential not to rush into things and take things one step at a time.

[00:05:17] [SPEAKER_00]: Shopping around for a house you like will give you a good idea of prices in your area,

[00:05:21] [SPEAKER_00]: so you can make an informed decision when you find the right home.

[00:05:27] [SPEAKER_00]: You just listened to the post titled, How to be financially savvy when buying a home, by Lisa Harrison of madmoneymonster.com.

[00:05:36] [SPEAKER_00]: I thought these were some good things to consider when buying a home.

[00:05:39] [SPEAKER_00]: One thing that stood out to me is the note about getting an inspection.

[00:05:43] [SPEAKER_00]: In my experience, an inspection is typically done after an offer is accepted,

[00:05:47] [SPEAKER_00]: and you can use the findings of the inspection to negotiate and get things fixed before you close.

[00:05:53] [SPEAKER_00]: I appreciated the advice here to not let yourself be pressured into this decision.

[00:05:59] [SPEAKER_00]: For most of us, buying a home is the biggest purchase of our lives.

[00:06:03] [SPEAKER_00]: It's too big of a decision to allow yourself to be bullied.

[00:06:06] [SPEAKER_00]: I know that's tough in the current seller's market.

[00:06:09] [SPEAKER_00]: Inventory is low and people are willing to overpay for real estate right now because it's just so competitive,

[00:06:15] [SPEAKER_00]: and many are even waiving inspections.

[00:06:18] [SPEAKER_00]: While you have to live somewhere, there are so many benefits to renting,

[00:06:23] [SPEAKER_00]: and there's no requirement that you have to buy a home.

[00:06:26] [SPEAKER_00]: So that being said, why not wait for exactly what you're looking for at a fair price?

[00:06:32] [SPEAKER_00]: I bought my house in 2018 shortly after I started casually looking.

[00:06:37] [SPEAKER_00]: I think it really benefited me to not be in a rush and not feel like I had to buy something.

[00:06:43] [SPEAKER_00]: I trusted that if the right house didn't present itself,

[00:06:46] [SPEAKER_00]: it just simply wasn't the right time and that would be okay.

[00:06:50] [SPEAKER_00]: While I did find pushy real estate agents a bit annoying,

[00:06:54] [SPEAKER_00]: it was much easier to navigate them when I reminded myself that this home purchase

[00:06:58] [SPEAKER_00]: was much more of a want than a need.

[00:07:02] [SPEAKER_00]: And that should do it for today.

[00:07:04] [SPEAKER_00]: Have a happy rest of your day and I'll see you on the Friday show tomorrow,

[00:07:07] [SPEAKER_00]: where your optimal life awaits.