Tips for Homebuyers

Contributed By Kedeisha Tapper


Whenever you decide it’s time to purchase a home, the first thing you should do is be in a position to determine what is affordable.

You should have an idea of the type of property you would like to invest in, the location, as this is a key factor and indeed familiarize yourself Real Estate market, how it functions and whether it is a buyer’s or a seller’s market. This information can be obtained by visiting Real Estate websites, speaking to Realtors, Developers, etc. and by so doing you would be in a position to determine whether the property is affordable.

Firstly, the buyer should prepare a budget, i.e. income and expense statement including whatever savings is available in order to determine what is affordable to cover the deposit and closing costs. The minimum deposit is usually 15% (of the consideration or sale price of the property) when purchasing from a private individual.

Let me explain further; say, you have Seven Hundred Thousand ($700,000.00) in your bank savings account and wish to purchase a property - the market value or sale price of the property that you are looking for should be approximately $2,500,000.00 as your 15% deposit would be approximately $375,000 plus the closing cost, covering Registration fee, stamp duty, attorney’s fee, and the cost for preparing the Agreement for sale as well as mortgage costs. Mortgage costs also include commitment fee, registration fee and Attorney’s fee.

There are several mortgage institutions, visit most if not all and determine the one/s that best suits your needs, be sure to asks questions and get documentations and names of the Representative that you spoke with, so that in the event that you should return then you will see a familiar face who is already aware of your business. Having decided on your mortgage institution, pre-qualify your self so that as soon as you have found a property the processing will go much faster.

After these steps, you will be absolutely sure of the price house that you can afford and you would already have familiarized yourself with the real Estate Industry so now you can start looking for your ideal property. Call or visit Real Estate companies or websites. Be sure to shop around (but in this process if you spot a good deal don’t let it pass you by).

You can choose to work with just one Realtor if you find that person is reputable, reliable, efficient and understands your needs (you can check with the Real Estate Board to find out whether the Realtor is licensed and also to know the company that he/she is affiliated with). Explain your needs and your reasons for these needs to your Realtor so he/she knows exactly what you are looking for. Develop a positive relationship with your Realtor so that he/she will go the extra mile for you. Keep in mind that the Realtor is a professional in this business and may be able to give you expert advice throughout the sale process in-order for you to have an easier and faster closure.

Upon purchasing, recheck boundaries with your surveyor especially with lots. Remember its better to be sure than sorry. I am sure you wouldn’t want to buy a lot with a view and after the sale you find that the lot you bought is really the lot beside the one you loved and been looking forward to build on and worst yet the lot is located in a gully with no view, sounds terrible but it happens.

Personally, I would like Home buyers to take this into consideration when purchasing Real Estate. Every seller wants the best price for their property but it’s up to you the purchasers to determine the price you are willing to pay. Sometimes your offer may be less than the asking price or even the market value in the Valuation report and on the other hand your offer can be more. The point is that the real Market value is what the willing buyer is willing to spend based on the demand for that property. A buyer should know whether paying more or less for a property is in accordance his needs.

Kedeisha Tapper is a licensed Real Estate Associate with D.C. Tavares & Finson Realty Company Limited, and an active member of the Realtors Association of Jamaica. She may be contacted directly using the form below.