Do’s and don’ts to watch out for, according to real estate experts
Our first home—the one we purchase ourselves—will always be very special. It’s a rite of passage, and an unforgettable milestone.
That’s why we need to be fully aware of the perils and pitfalls of plunking down our hard-earned money on a downpayment for a dream-come-true home. We asked seasoned real estate gurus on the do’s and don’ts so you truly enjoy the process of our first home acquisition.
Plan like you’re getting married
Buying your first real estate property is like getting married. You have to PLAN, because it’s a lifetime commitment. Here’s how.
Prepare yourself financially and emotionally. Check your capacity to pay and paying habits. Sometimes you have to make sacrifices for you to pay your down payment and the amortization.
List down what you want and need. Create a checklist of the things that are important to you.
- Location (Proximity to work or school, transport accessibility)
- Number of occupants (who will live together)
- Amenities and utilities (sports/recreation, water, electricity, internet)
- Neighborhood/Community
- Budget (in paying the amortization, utilities, condo dues, or subdivision dues)
Assess real estate developers. I personally recommend for first time home buyers to purchase from
developers that have a proven track record. Buying from any of these developers will provide you with good product, location, and financing options that will match your needs or wants.
Negotiate. Once you were able to identify the particular home and which developer you will purchase your home from, ask questions and negotiate.
With my experience, there were buyers that don’t frequently ask questions and do some negotiations, and it’s only after the purchase that they have a lot of questions. Unfortunately for others, this means they end up giving up on their dream home.
Purchasing your dream home is like having a romantic relationship, “date a lot” first before marrying
your “dream spouse.” —Leonard P. Ramirez, King Properties Cebu
Look for a license
Transact only with a licensed broker or an accredited real estate salesperson.
Always ask to see their brokers’ ID. Always check if the project has a License to Sell (LTS)—never buy projects without LTS. There are a lot of agents/brokers who will only focus on the downpayment. Nowadays, developers are offering as low as five to 10 percent DP or equity. Very attractive, right? What about the 90 to 95 percent balance? At the end of equity, for bank and Pag-IBIG applications, many applicants will not be approved. What will happen to their DP? Waste of hard earned money. —Dionie Tiu, Steeple Brokerage
Buy commercial
If you can, grab something that has commercial value, say, a space on the ground floor for rentals or a commercial space, and a living space on the second. This setup is how our entrepreneurial grandparents envisioned it years ago, and how parents were able to send their children to school.
Investing in your first house as a “dream house” is like immediately buying your dream car—it gives you status but it’s expense without income. Maximize what you can afford for now so you can afford more in the future. —Juan Inigo Zaragoza, licensed real estate broker
Look for an agent who goes the extra mile
Choose a good real estate broker or agent who will journey with you up to the moment you accept your
property. How would you know? They will go the extra mile even for your last-minute requests, late-night trippings, just to assist you and help you find your dream home.
When you find one, listen to them. Trust them. They will not risk their licenses to deceive you. Be kind and respectful to your broker and it will inspire them to be honest and give you great service. —Anne Lim, My Home My Covenant real estate broker
Hang out in the neighborhood
Thoroughly research the neighborhood and surrounding area before making a purchase. This goes beyond just looking up property values and crime statistics.
One practical way to do this is to take the time to walk or drive around the neighborhood at different times of day and on different days of the week. This will give you a better sense of the noise levels, traffic patterns, and overall vibe of the community. You could also consider talking to local business owners or residents to get their perspective on what it’s like to live in the area.
Another important aspect to consider is the availability of public transportation, especially if you plan
to commute to work. Researching the local public transportation options and their schedules can help you avoid any unpleasant surprises after you’ve moved in. —Josephine Robles Cacao, investor
Ask for the highlights
Ask the agent to highlight the schools, hospitals, malls, and wet market nearby. Take advantage of pre-selling, even when all you see is land.
The minute a house goes up in the area, property rates are sure to go up. Make sure to choose the right agent: When they close the sale with you, it’s not the end of your transaction, but should signal the start of your long-term relationship. —Bianca Ramos, PHirst Parkhomes area manager
Do your due diligence
Avoid mother titles and rights only as much as possible. Look for lots with individual titles and clean records. With mother titles, you run the risk of buying a portion of a lot that has been sold twice or more already.
You also run the risk of not being able to transfer the title to your name if owners of other portions of the lot are already dead or won’t agree to sell their share. With rights only, you don’t get to own the
lot. You only have rights to use it, so why buy it? —Scintilla Serin, former real estate agent