WHAT BUYERS ARE THINKING BEFORE BUYING
Here at the Stephanie Woods Team we would like to share some ideas a buyer should consider before buying your dream home. In this 4 part series our hope is to help your home buying experience become an educated and exciting one!
When to invest in a house, how do you know when you're ready to own a home?
Home ownership means you no longer pay monthly rent for the roof over your head. You can do what you want with your house (within reason). When you leave, you can sell it to recoup the purchase price and earn a profit too.
So before going any further, consider whether your lifestyle and finances make home buying a smart move.
1. WHAT CAN WE AFFORD—Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. If you can't put down the usual 20 percent, you may still qualify for a loan. There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.
2. HOME INSPECTORS-- Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.
3. DO YOUR HOMEWORK BEFORE BIDDING-- Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.
Here at The Stephanie Woods Team we would love to help you buy your dream home! Call us at 928-237-4455 and one of our qualified licensed agents will happily show you some spectacular properties!
Interested in selling your home? List with The Stephanie Woods Team! We will come to your home and give a free consultation on your property! Call 928-237-4435 and we will set up an appointment that is convenient for you!
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