Buying a home is an important step in your life, and is something you can prepare for to help you be more successful and ready for each step in the process. And the more you know in advance of the buying process, the easier it will be and more smoothly it will go. Here are some tips to help you when you buy your next house.
Look at Market Activity
As you first start searching the market for a home to fit your needs and budget, take some time to analyze home prices and compare them to one another and also to homes that have recently sold. Not all homes are priced according to their true value, and some can be inflated based on the seller's expectations and emotions. Don't let your own emotions about a house affect how much you pay for it, as you should use real data to assess a home's price.
For example, imagine that you have found a home you want to buy that is priced at $180,000 and needs quite a bit of work. Ask your real estate broker to complete a comparative market analysis (CMA) on the home, which will compare it to recently sold homes in the area. Be sure to account for the home's needed repairs to adjust the price to compensate for the money you will need to put into it to get it up to the same condition of the homes you are comparing it to on the CMA.
You should also look at how quickly homes are selling or how long they are sitting on the market. For example, homes that are sitting on the market for quite some time can indicate a slow real estate market and may result in the prices coming down in the future. On the opposite side of the situation, when homes are selling quite fast and are only on the market for several days or weeks, this can indicate that there are a great number of buyers compared to homes, and you might experience a bidding war on a home you want.
Calculate Homeownership Costs
Just as it is essential to prepare for your home's upfront closing costs, you should also plan for your future home's potential costs to ensure you are prepared to cover them. This can include costs such as utilities, property taxes, homeowners' insurance, and property maintenance and repairs. As a homeowner, you will be responsible for replacing or repairing any appliances that break down. So, for example, if your home's water heater stops working, plan to have the money available to buy a new one.
It might be helpful to put money away into a savings account each month to save up for unexpected repairs for your home. Keep this fund separate from your family savings budget to ensure you have the funds available when the unexpected occurs.
To learn more, contact a real estate broker.
Share15 January 2020
When you decide you want to sell your home or buy a new one, you will need to hire a real estate agent to represent you. A good agent will do most of the legwork as far pricing the home, creating a listing, and advertising the home goes. However, you will need to work beside them and make decisions along the way. We've created this website to give the average home seller or buyer a little more insight into the world of real estate. Learn how to find a good agent, help them do a better job for you, and navigate the sale process in the articles presented on our pages.