Today’s housing market is very different than 30 years ago. Homeowners are not staying in their homes as long as those of previous generations did before. Today’s world is fast paced and things are always changing, people move around jobs more, want to spend more time with their kids and as a result they value flexibility more and more. When life happens, things change. That is why it is very important for home buyer’s to understand the re-sale value of the property that they have their eyes on.
When considering a home, the best practice is to look for something that has a wide range of appeal, rather than a unique home that might only net a niche demographic. It is always best to discuss market patterns with your real estate agent. A real estate agent should know the market and where it is headed, whether it be a seller’s market, buyer’s market, short-sale market etc…Buying a home should not only feel right but it should be a practical as well.
Focusing on the wrong expenses.
The two expenses that home buyers stress over the most are mortgage payments and closing costs. Don’t fall into this trap as there can be many more expenses that you will have to deal with down the road to homeownership. For example, if you want a pool in your home than your electricity bill will be much more costly than a home that doesn’t have a pool. Sometimes the HOA fee can be absurd and you might not realize it at first, but when you start paying it monthly it can get not only frustrating but very expensive. A good thing to do before purchasing a home is to ask the seller for a list of monthly and yearly expenses that they have to make so you can better understand all the costs that will go into a particular home.
Before purchasing a home, make sure you know all the restrictions on a certain home. If you are looking at a home and have a vision where you want to add on or remove parts of the home you will need to know all of the zoning laws. Another common restriction on certain homes are parking restrictions. Sometimes you will have to park down the street! Restrictions are often overlooked and they can really put a gray cloud over your head when you have to deal with it. Make sure to go over all the restrictions in terms of remodeling and any other restrictions that might make you take a second look at a home.
Previous work done
A common mistake for some home buyers is overlooking previous work that had been done on a property. While everything might look fine now, you can find yourself handing over some serious cash for a potential repair problem that you never expected. Make sure to look into every bit of repairs or renovations that went into the home and double your efforts to make sure that it was properly inspected and that it passed the inspection as well.
The HOA Fees
We mentioned HOA fees in a previous passage but it is widely overlooked that we need to mention it again and give it its own passage. This really just comes down to proper due diligence. Never ever…ever close on your home without doing proper due diligence. Typically HOA’s making your living conditions much easier but occasionally you’ll run into some unexpected drama and chaos. There have even been instances of potential fines being put forth by the HOA. And if you don’t want to live in a community with an HOA, make sure you find out if there is one before signing an agreement.
Have you surveyed the neighborhood that you are considering moving into? If not, it is best to do that before putting forth an offer. Make sure you look at crime rates, schools in the area, time to commute, access to freeways etc. These all seem straightforward enough but you would be surprised by the type of information that gets overlooked because of excitement over a home. Again, discuss these things with your agent. They should know this type of information and if they don’t then they definitely have the tools to look it up. Owning a home is one of the most expensive assets that many people will have during their lifetime. Make sure what you are getting is EXACTLY what you want.
Real estate transactions can make you go through a long and rigorous process but remember it is best practice to review, review and review again. When it comes to one of the biggest financial decisions of your life, there is no such thing as information overload. Be sure the house you want is the house you get.
Whether you are interested in buying, selling, re-locating or investing talk to Realty Executives Dillon Real Estate Experts to see how we can help you with your real estate goals.
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