I’ve devoted a career to helping people find that perfect house and turning it into the home they deserve. Throughout my career, I have seen highs and lows from people who plan everything out and have no problems with their adventures in purchasing a home to people who don’t plan anything and don’t realize what they’re getting themselves into. I always make sure to advise my customers on the best route they should take. Everyone will buy a home at some point, but is it time for you? Below are 8 things to consider and tips for buying a home in today’s market.
1. Don't buy if you can stay put.
Buying a house isn't for everyone. Assess your current situation. Are you 23 years old and want a house just to get out of your parents house? Maybe you can stay put a few more years and really save up. Are you thinking about moving to another State for personal reasons? Maybe staying put and planning more you may realize you don’t need to move.
2. Make sure you can really afford the home.
You will be spending a lot of time here. Gone are the days, except in a booming real estate market, of buying a "starter home" and planning on moving out in three to four years. The reason for this is the high transaction cost where you may actually end up losing money in the long run. Prepare your investment because buying a home is, for most people, the biggest transaction of your life.
3. Evaluate your current job state.
Jobs fluctuate. Are you currently at a job where you expect to remain for the next 5,10, or 20 years? No one can predict how long a job will last; even CEO's get fired. However, plan ahead and see your family situation and what your job is. If you are an employee at Wal-Mart, you can probably get another similar paying job if you wanted to move. If you are the vice president of a company, losing the job and taking a pay cut will probably inhibit you from affording the lifestyle you had built up.
4. Check your loan qualifications before you begin your search.
A lot of people want to jump right in to looking for houses. Who wouldn’t, it’s an exciting time and there is a ton of real estate for sale. You are about to make one of the biggest investments in your life. It is very time consuming to look at houses. If you look at 25 houses and 20 of them are out of your budget, that time spent looking is just a dream at the moment. Make sure you have a proper loan.
5. Be realistic with what you can afford
Be sure to get pre-approved, meaning a lender has looked at your entire financial background and has shown you what you can afford. Even if you get pre-qualified for a loan and can afford the huge down payment, make sure you analyze your life style and will be able to make the monthly payments. Be sure to account for extra expenses outside home ownership such as car repairs, getting mugged, etc.
6. Do your research!
There can be a lot of hidden charges involved if you jump into your search without looking deeper at your options. There are benefits to renting versus owning a property. When it comes to renting, you don’t build your equity, but you aren’t responsible for a mortgage payment, property taxes, homeowner-association dues, repairs, and maintenance. Make sure you understand these fees that go with owning a house and are prepared to pay them.
7. What is your family situation?
Are you a newlywed looking to start a family? Make sure you know what schools are in the area and if they are the type of schools you are looking for. Even if you aren’t planning on having kids any time soon, having good schools in the surrounding neighborhood can affect the value of your house by as much as 20%.
8. Most importantly, plan for the future
While looking at a house, you may enjoy the location/features of the house, but that might not mean others will. Think about the future when you may want to put it back on the market and re-sell it whether that be 5, 10, 30 year down the line. If some of those features that originally attracted you are farfetched, it may be harder to convince others to buy it. You want your selling experience to be as smooth as your buying experience is.
Located at 501 Stokes Road in Medford, NJ, Michelle Basmajian can be reached by phone at 609-636-0044 or via email with the convenient form located on her website at http://www.michellesgreathomes.com.
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