The real estate sector in India witnessed an 11-year high in residential housing sales during the first half of 2024 , reflecting a strong demand and aspiration for homeownership.

While this is a promising outlook, it is important to prepare thoroughly and make informed decisions to successfully navigate homeownership. A detailed home purchase checklist can serve as your guide, helping you tackle every phase of the process with confidence and avoid common mistakes.

Here are the essential elements to include in your home purchase checklist:

1. Determine Your Budget and Consider Home Loan Options

Your budget should not just be about numbers; it’s about aligning your financial capacity with your long-term goals. Start by analysing your current income, monthly expenses, and savings to determine how much you can comfortably afford without overburdening yourself. You’ll also need to account for property taxes, maintenance, utility bills, and unexpected repairs to get an accurate picture of your budget.

Once you have calculated your maximum budget, you can explore financing options like home loans. Check the eligibility criteria, interest rates, and repayment tenures offered by different lenders to find the best offers. You can use online calculators to estimate your EMIs and ensure they fit into your financial plan. Make sure to get clarity on associated fees and charges such as processing fees to get a clearer picture of the overall loan cost. If you’re unsure, consulting financial advisors or reputed lending companies can also help you choose loan solutions tailored to your needs. A realistic budget is the foundation for every decision ahead, so take your time with this step.

2. Research Locations Thoroughly

The location can significantly affect your home-buying experience. Begin by listing your priorities, such as proximity to work, good schools, public transportation, and local amenities like parks and hospitals. Also, consider future growth prospects, as areas with upcoming commercial developments often see a rise in property values.

Consider visiting your preferred neighbourhoods at different times of day to assess traffic, noise levels, and safety. You can also talk to locals to get insights into community life and check property appreciation rates in the area.

Moreover, consulting a real estate expert familiar with the local market can help you find hidden gems or avoid overrated regions. With the right research, you can tick finding a location that meets both your immediate needs and long-term goals off of your home purchase checklist.

3. Identify Your Must-Haves and Deal Breakers

Every buyer has a vision for their ideal home, but there are certain aspects that require compromises. Dividing your home purchase checklist into must-haves and deal breakers can help you be more flexible and make smarter decisions.

For example, must-haves could include the number of bedrooms, natural lighting, or a spacious kitchen. Deal-breakers might include lack of parking or poor ventilation. You must consider both your current lifestyle and your future needs to create such a house purchase checklist.

For instance, if you plan to expand your family, it is best to look for extra bedrooms or kid-friendly neighbourhoods. The key is to be practical about what is essential versus what is desirable. While a pool or modern fixtures may seem appealing, it is best to not let them overshadow fundamental aspects like structural integrity or resale potential.

Sharing this house purchase checklist with your real estate agent ensures they focus on properties that truly align with your needs. A clear understanding of your priorities prevents emotional decision-making.

4. Hire a Reliable Real Estate Agent

Good real estate agents are not just middlemen – they work as allies, advisors, and negotiators in the home-buying process. Look for agents with a proven track record in your target area. You can ask for recommendations from friends or family, or check online reviews and testimonials.

During your initial meetings, assess their communication style and responsiveness. A skilled agent should take the time to understand your preferences and budget before suggesting properties. They should also be transparent about their fees and have a clear strategy for finding the best deals.

Agents are particularly valuable when it comes to documentation and negotiations. They can spot red flags in contracts and ensure your interests are protected. Partnering with an experienced agent saves time, reduces stress, and helps you stick to your house purchase checklist.

5. Inspect the Property Thoroughly

No matter how perfect a property looks, an inspection is non-negotiable. You can hire a licenced home inspector to assess the condition of the house – from its foundation to its roofing – if you prefer not to do so yourself. They typically check for structural issues, plumbing problems, electrical hazards, and potential pest infestations.

If possible, accompany the inspector during the assessment to ask questions and understand the findings. If major issues are uncovered, use the inspection report to negotiate a lower price or request repairs from the seller.

For new properties, verify that the builder has adhered to relevant safety codes and secured necessary approvals. This will help ensure that you’re investing in a safe and reliable home.

6. Review Legal Documents Carefully

The legal aspect of buying a house can be complex, but it is crucial to ensure your investment is secure. Verify the ownership of the property by requesting title deeds, encumbrance certificates, and sale agreements. Make sure the seller has the legal authority to sell the property and that there are no disputes or outstanding loans tied to it.

You must never rush through the agreement of sale. Pay close attention to the clauses regarding payment timelines, penalties, and possession dates before you sign the deal.

You can consult a property lawyer to review these documents, as they specialise in identifying potential issues like incomplete approvals or discrepancies in ownership. If you are purchasing an apartment, ensure the developer provides the Completion Certificate (CC) and Occupancy Certificate (OC). The CC certifies that the building adheres to the approved plan, while the OC ensures it is safe for occupation. Without these documents, you risk facing penalties or even eviction under the Real Estate (Regulation and Development) Act (RERA) 2016. Confirm that the builder is registered with RERA, as this law protects homebuyers from fraudulent practices and unnecessary delays.

7. Assess Additional Costs

The purchase price of a house is just the tip of the iceberg. Several additional costs can strain your budget if not accounted for in advance in your house-buying checklist, such as registration fees, stamp duty, legal fees, property taxes, and broker commissions.

If you’re purchasing a property in a gated community or housing society, expect maintenance charges for shared facilities. Additionally, budget for utility connections like electricity, water, and gas, especially if the property is newly constructed. Renovation and furnishing expenses should also be factored into your calculations.

Requesting a breakdown of costs from your real estate agent or builder can help avoid surprises. With a structured financial plan and the right home loan from a reputed lending institution, you can manage these expenses with greater ease.

8. Consider Resale Value and Market Trends

While making a home purchase checklist, it's important to think about a property’s resale value. Properties in well-connected areas with high demand tend to appreciate faster, making them a better long-term investment. If you look at historical price trends in the neighbourhood and research upcoming developments (like metro stations or malls), you can better assess the future value.

Consider the condition of the property as well to assess its resale value, as well-maintained homes are easier to sell. In volatile markets, consider timing your purchase to get the best deal. Buying during a buyer’s market, when inventory is high, can help secure a better price.

Additionally, you must also evaluate how your home’s unique features, like eco-friendly amenities or architectural styles, contribute to its desirability. An investment that is at par with market trends and buyer preferences can serve you well in the long run. Hence, you must include resale values and market trends on your home buying checklist to make informed decisions and maximise your property’s value.

9. Negotiate and Finalise the Deal Wisely

Negotiation is a skill that can save you a substantial amount of money. Once you have found your ideal property, do not rush to accept the asking price. Instead, research the market value of similar properties in the area to determine a fair offer.

You can use inspection reports or any required repairs to negotiate a lower price. If the selling party is motivated, they may agree to reduce the property’s price or include additional perks, such as furniture or appliances. Highlighting specific issues, such as older wiring, can strengthen your position as sellers may prefer to close a deal rather than undertake updates or repairs themselves.

Be polite but firm during negotiations, and know your maximum budget to avoid over-committing as you cross items off your checklist. Once both parties agree on the price, carefully review the final agreement. Ensure all the terms discussed, including payment timelines and possession details, are stated clearly. This way, you can close the deal confidently and smoothly without straining your finances.

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Conclusion

Each step of buying a house, from budgeting to finalising the deal, requires careful thought and due diligence. Creating a detailed "home-buying checklist" ensures that your experience is both rewarding and stress-free. Always remember to focus on critical details such as legal clarity, market trends, and the appeal of the location, while also keeping an eye on your desired aesthetics.

A reliable financial partner can make this process significantly easier. SMFG Grihashakti provides home loans of up to 90%* of your property’s value to help you realise your dream of homeownership. Our competitive interest rates start at

just 10%* per annum and the repayment tenure goes up to a flexible 30 years* to help keep your EMIs manageable.

Use our free, user-friendly calculators to estimate your EMIs and the maximum loan amount you may qualify for, and apply with a convenient online application process. For personalised insights, feel free to visit your nearest SMFG Grihashakti branch.