Home Buyer Tips ~ #10 - Owning A Home is a GREAT Investment...But....
And finally....Home Buyer Tip #10 of the Top 10 Tips To Take the Stress Out of Homebuying:
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.
Once again, we all wish we had a crystal ball, But, alas, we don't. Homes appreciate at different rates, in different areas of the country...as well as different neighborhoods within the same city! And the amount your home increases in value can also change from year to year.
A financial payback is more likely than not, but it usually takes several years to see a significant increase in value...even in a prosperous economy.
If you've enjoyed your home over the years, felt safe and comfortable and have created many lasting memories, then you should be very proud of all you've done to get there!
Home Buyer Tips ~ #9 - Unless It Was Love At First Sight....
Home Buyer Tip #9 of the Top 10 Tips To Take the Stress Out of Homebuying:
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits! Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
From beginning to end, the process of finding and buying a house could take from 2-3 months. And unless you fall in love at first sight (although it has happened), you may cross 10-30 thresholds before your lips curve into that little smile and your eyes sparkle ~ you've found the one!
You'll negotiate the price and inspection issues, wait impatiently for the call that your final loan has been approved, and hold your breath until the day the title transfers into your name.
And then you'll have the keys to your new house! As you open the door, you may feel a tad of a let down...kind of like Christmas morning after all the presents are opened. There is so much planning and prepping to lead up to the big day...and here it is. Now what???
Now you crack open a bottle of your favorite beverage and toast yourself for a job well done! You have gone from house-hunter to homeowner - CONGRATULATIONS!!
Home Buyer Tips ~ #8 - Take care of the little things, so they don't become BIG things
Home Buyer Tip #8 of the Top 10 Tips To Take the Stress Out of Homebuying:
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
One of the first things I've noticed, with every house I've ever owned, is the amount of time I spend at the hardware store. Twenty years ago, it was Forest City, then Builder's Square, then...hmmm...I forget which was next. But now it's The Home Depot!
Once you have the keys to your dream house in your hot little hand, the first thing you'll do is go to the hardware store and buy new locks. Then curtains, if the house doesn't have them. You don't want everyone
driving by and watching as you're removing wallpaper and painting and such.
And don't forget the "you might want to take care of these someday" list your home inspector gave you. No, you don't have to do everything the week you move in, but please do create a "Home Maintenance" budget. I even had a special bank account set up!
You see, it's easy to let certain tasks slide after you've set up housekeeping, but they can come back to haunt you once it's your turn to sell. Because now your future buyer has their home inspector in tow, and as you know the transaction will go much more smoothly...and you'll save tons of money...if there aren't a lot of maintenance items to take care of at the last minute.
So you might want to place a Piggy Bank next to the "Honey Do" jar on the kitchen counter...just in case!
Home Buyer Tips ~ #7 - Be a good little Scout....Be Prepared!
Here's Home Buyer Tip #7 of the Top 10 Tips To Take the Stress Out of Homebuying:
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
I'm going to focus on the mortgage part of this tip. Getting homeowner's insurance and knowing your exact move-in timetable are definitely important, but in the end, it all comes down to $$$.
In today's market, sellers are more cautious than ever when it comes to the offer they accept on their home. The mortgage crisis has made everyone leary, and it is in your best interest to be as prepared as possible.
Once an offer is accepted, the seller's home is taken off the market - the status is changed from "Active" to "Contingent" or "Pending". Contingent will keep it visible in most MLS searches (usually waiting for the home inspection to be completed & repair issues ironed out, and sometimes still allowing showings to other buyers), but Pending means the sale is in the home stretch (no pun intended!) - waiting for the final mortgage and title work to be completed - and is removed from the market. No more showings "just in case" the deal falls through.
My point is this: If a seller accepts your offer, the inspection goes well and now everyone's waiting on your financing...and you can not get a mortgage to buy that house...the seller has just lost valuable market time. They have to put their house back in the MLS, and prices may have fallen in the 2-3 weeks it has been "Pending", waiting for your financing...that now isn't going to come.
Visit a lender (or 2 or 3) before you even begin your home search and get pre-approved.Then when you and your realtor find the perfect home, your offer will be that much stronger!
Home Buyer Tips ~ #6 - Location, Location, Location!
And now for Home Buyer Tip #6 of the Top 10 Tips To Take the Stress Out of Homebuying:
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
I realize the title has become a cliche when it comes to talking about buying real estate. But one of the most important homebuyer tips is almost the polar opposite of my forest and trees advice in tip #4. This time I want you to take a gigantic step back, and really look at the forest!
Is your dream home located next to an interstate? "Close to the highway" may be convenient for you to get to work in the morning, but do you want to be able to hear everyone else getting to work in the morning...on your day off when you can sleep in??
Is your dream home located near an airport or directly under the flight path? My Dad's house, the house I grew up in, is so close to the airport that I remember jumping up from the couch to adjust the volume on the TV. Over and over and over again...it was just about the only exercise I got as a kid. Ok, so I've just dated myself....yes, that was before remote controls!!
Is your dream home located alongside railroad tracks? Last year I had two buyer clients - one said "I love the sound of trains!" and the other would go to Google Maps before every showing to make sure the house in question was no where near the trains.
Not to mention neighborhood bars, shopping malls and water treatment plants. Everyone has their own comfort level...what they will and will not tolerate. Almost every time I've considered buying a house in the past 22 years, I would park my car nearby at all hours of the day and night...for several days prior to writing my offer. I would sit at 10pm on a Friday, and at 7am on a Sunday. Some people like church bells, I happen to like to sleep in. And what about the 3 barking dogs each on either side of my most recent dream house. Yes, I found out about my many four-legged neighbors after I signed on all the dotted lines. Remember, I said "almost every time". Would I have still bought my house? I really don't know...maybe, maybe not. I do like dogs, but besides reading, sleep is one of my favorite hobbies. : )
So before you sign on all those dotted lines, look at the whole neighborhood...not just the gorgeous remodeled kitchen and finished basement.
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"The Golden Rule"...it's that simple! It's what I teach my children, how I live my life and how I conduct my business.
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