What type of concerns should a new home buyer have?

What type of concerns should a new home buyer have?

My mom is a Realtor and I’m looking into buying a house. I know a lot about it but I wanted to ask this for more experienced buyers to give me advice to see if there is anything else I should consider.

Thanks in advance!

Answer #1

If your mom is a realtor than she probably knows more than most of us but since you are asking us I’ll toss in my $.02..

One rule of thumb that makes sense to me is not to buy a house that you plan on staying in less than 7 years. If you will stay less than 7 years the costs associated with buying, financing, and selling will probably eat up any equity and tax savings you earn so you are probably better renting for shorter stays. Of course 7 years is a rule of thumb; you can run some numbers looking at the costs and benefits of owning; the break even point might come sooner or later for you personally. e.g. someone in the top tax bracket will get more benefit from the deduction for interest and points than someone with a more modest income..

There is a lot of truth in the saying that the three most important things in real estate are location, location, and location. Homes in desirable locations are likely to appreciate more in an up market and depreciate less in a down one.

Be realistic about what you can afford. Don’t assume that just because you can get a loan you can afford a house. I know a couple who make about $160/year who are looking for a house. Their bank pre-qualified them for a loan up to $550K. IMHO they would be nuts to buy that much house.

It is a scary time to buy becuase of the mortage crisis and the shaky economy. I’ve never been a believer in trying to time the market. If now is the right time to buy for you than go for it instead of waiting and hoping to get a better deal in the future. Prices and rates are unpredictable and could go either way. Every time I’ve tried to time the real estate or stock market it did the opposite of what all the “experts” predicted and I lost money.

Answer #2

Drive/walk the subdivision and stop and chat with anyone you see out. Go knock on the neighbors doors and talk to them, a Realtor or seller can’t say certain things, but a neighbor can! Come back at various times of day to see what changes for the better or worse. Also, once you are in the neighborhood, say hi to strangers, remember your neighbors names and talk to them when you see them or wave at least. Pick up trash whether it’s yours or not. What’s right/wrong with the world starts with you and I…

Answer #3

Look out for your type of loan. Right now we are seeing tons of homebuyers suffering for the ARM’s and Balloon mortgages that are shooting their payments up to unreasonable levels.

Right now in California, nobody is buying. Everyone is waiting for the bottom to drop a bit further. However, now is a good time to go fishing for houses that people couldn’t afford to keep.

Answer #4

Above all, before you sign on the dotted line, have the home inspected by a professional home inspector. It might cost you $300.00 dollars but it will give you a detailed look at all of the systems in the home. It will also give you an idea of what to fix or improve while you own the home to increase the value for when you choose to sell. It will also save you if the home has problems, and many times you can write into the purchase offer for the home that the seller must fix those same items.

That more than anything else is the most important thing to do.

Answer #5

What will the market be like when it’s time to sell. ‘Cause right now it’s awful.

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