Chris Farkas

If there ever was one thing that dissuades people from purchasing a home it would be the necessity to perform a multitude of repairs. After all, who wants to purchase a home and then invest tons of money into repairing the property as well as making the requisite time commitment that such repair work would entail? Now, while this situation may sound dreadful on the surface it is actually a great opportunity for an industrious person.

If you think this is an idealized description of the situation, then look at it this way: say the average market value of a similar home in the area is $250,000. The home you are considering purchasing is valued at $190,000 due to extensive repair work that is required. So, before making a decision as to whether or not this home is a viable investment purchase it may be wise to examine what the cost of the repairs will be. If the repair work will cost $30,000 then this is not a negative…it is a huge positive! If you do not believe so then simply do the math: $190k plus $30k equals $220K. Remember, the value of the home after repairs will be in the neighborhood of $250K. So, even with $30k in repair work you will end up with acquiring the home at a $30k discount! This is to say nothing of the equity appreciation the home will eventually accrue.

Of course, no one wants to purchase a home that is falling apart, but if the required repairs can be overcome by the equity one can acquire then this is far from a bad real estate investment venture.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

Many people who wish to sell their home have to face the question of when is the right time of the year to do so. The truth is that there is no clear answer to this question because the answer depends on too many factors and all of them are of a subjective nature. People who are looking to buy a home do so based on many factors. Are they being relocated due to a job transfer? Have they been waiting for their home to sell? The only clear trend is that during spring and summer the number of homes sold is higher.

There are, however, other factors to consider. Do you want to sell in a busy market or a slow market? A busy market means there will be a lot more competition. If you feel that you home may not position well to stand heavy competition then it would be better to wait till the market slows down a bit. If, on the other hand, you position your home so that it is competitive in the market then time of year is less of a consideration.

While seasonal trends are important they not the most important thing. The most compelling factor in selling a home are your own needs. There has to be a reason why you are selling your home and there is probably a deadline by which you have to have done so. Focus on those rather than on the time of the year. Also pay attention to current market conditions. You may not be able to wait for early spring for the market to get busy, so do not damage your position by waiting for months.

Apart from current market conditions you should also understand where the market is going. This involves a bit of research to figure out future trends from past ones. Though you cannot accurately predict the future of the market you can get a reasonably close picture. Talk to your real estate agent. They have the expertise you need to help make a well-informed decision. If the market is beginning to slow down and turn into a buyer's market then obviously you are better off the sooner you sell your home. Waiting in a slowing market will only lower the market value of your home. If your home is in an area of rising property values, price your home to reflect the direction of the market. Again, talk to your real estate agent for advice and guidance.

There are many factors to consider when selling your home. The time of year is less important than making sure your home is priced correctly and marketed properly.

Remember that you only need one buyer!

Chris is a Realtor with EXIT Realty Associates
www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com

Five First Time Home Buyer Mistakes

Buying a home for the first time is an exciting process. At the same time, it is one that is filled with many steps and details. Deciding which home and which mortgage are decisions that have lasting consequences. As you embark upon your home-buying excursion we suggest you keep in mind these common mistakes of first time homebuyers.

#1 Purchasing a home too fast. Perhaps it’s the excitement of buying your first home. Or maybe it’s a fear that the “perfect” home will be purchased by someone else. Whatever the reason, many first time homebuyers make the mistake of rushing through the home purchasing process. They tend to spend too little time searching for the right home. Often first time homebuyers end up dissatisfied with the home they’ve purchased. Keep your options open and continue to search for new homes that come on the market.

#2 Buying too much home. Another mistake made by first time homebuyers is purchasing a home that’s right at, or even a little beyond, their limits. Many times this leaves the new homeowner with little or no disposable income. What good is a large home if you are unable to furnish it? None at all! Purchasing a smaller home and leaving yourself some wiggle room is much better than eating up your monthly income with a large mortgage payment.

#3 Holding out for the dream home. First time homebuyers might pass up several houses they like because they believe that there is a better house out there for them – one that is complete with everything they want and need. In the meantime, houses that have most of the items they are looking for are being taken off the market by other buyers. If a significant period of time passes, market prices could go up and the first time homebuyer ends up paying more for a home than expected. Even worse, the buyer ends up so worn out from house shopping that he, or she, ends up settling.

#4 Not getting pre-approved for a mortgage. A pre-approval will do wonders for the first time homebuyer’s shopping experience. Being pre-approved for a mortgage lets you know what you can afford and what your payments will be. Some first time homebuyers, not realizing the importance of this, forgo pre-approval to get a head start on home shopping. What’s the worst that could happen? You could find a home you absolutely love and fail to obtain financing for it. Also, being pre-qualified is NOT the same as being pre-approved. We have seen many families not get their dream home because they were just pre-qualified.

#5 Not comparing mortgages. Shopping around for a mortgage is just as important as shopping around for the home. Many first time homebuyers do not realize that mortgages from different lenders have different costs and different terms. There are so many factors of that can vary from one lender to the next. It only makes sense to shop around for the best deal.

Be informed of the steps that you must take and the decisions you must make as a first time homebuyer. Information and education are the best tools to equip you during the process of purchasing your first home.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com