There are many reasons why now is a good time to buy a house. Just to mention a few; interest rates are still at historic lows and there is time left to take advantage of the Home Buyers Tax Credit on that new Smith Mountain Lake home. But as you are looking for a home, there are a few things you should remember amid the excitement of the hunt! If you are in need of a House Hunting 101 refresher course, take notes!
Lesson #1: Don't look at homes that are outside of your price range! This may seem like a no brainer, but from the current foreclosure rate, it would seem it bears repeating! When property values were high and mortgages easy to come by, there were many home owners who bought more house than they could really afford. This left many with no wiggle room in their budget for surprise expenses such as an increase in property taxes. Add to that a drop in property values and you begin to see why the housing bubble burst.
The simple way to avoid this pitfall is to not look at homes that are beyond your price range. You have to remember you are not just paying an extra $7000 on a home; you will also be paying interest on that $7000 for the next 30 years! A good real estate agent won't send you listings that are completely out of your price zone. If by some chance you do end up with such a listing, RESIST THE URGE TO CHECK IT OUT! It will only cause heartache, because the homes in your range may seem unsatisfying once you have seen what you can't have.
Lesson #2: Avoid thinking you are Ty Pennington when you are not! We all have talents. If your talent lies somewhere other than being a handyman, do not buy a "fixer upper" that needs major renovations. Well, that is unless you are going to pay someone else to do the work. It is very tempting to try and take on a home that is priced low and needs a lot of work.
Sometimes the issue is having time to do the repairs more than IF you can do them. Take a real inventory of what the home needs and consider the time, talent and cash it will take to make it the home you want it to be. Don't forget to factor in the expense of living somewhere else while the work is being completed.
We will share a more of House Hunting 101 Smith Mountain Lake in the next post. If you have questions about buying a home in Franklin County, Virginia call Vicki Millehan! Her team can help you find the right place to call home! And if you haven't had a chance to check out Smith Mountain Lake, come for a visit, if you like it then move here!
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