What matters the MOST when you decide to buy your first home? Pay attention to THESE FIVE THINGS!
Buying your first home is a super-big step. Planning and preparation are critical. On top of the list of things that matter most are FIVE things discussed here. So take a look!
Five Things You Should Know:
1. Money Matters
2. Location Matters
3. Condition Matters
4. Your Team Matters
5. The Future Matters
· Money Matters
Before looking at properties, it is important to know what you can actually afford. Unless you are paying cash (and why do that when interest rates are so low?) you’ll need a loan officer or mortgage broker to help you figure out how much you can afford to mortgage. And did you know that you do not need 20% or even 10% for a down payment?
· Location Matters
Of course you will need to decide on your target neighborhood, and whether it is in the city or the suburbs. But once you decide this, you’ll need to carefully consider the precise location of any particular property of interest.
For example, you’ll find that properties on busy streets, near power lines, or adjacent to commercial areas are often attractively priced. That’s because few buyers want to live near these things if they have other options.
Even if those location issues do not bother you, remember that when you buy now for a low price (relative to nearby properties without location issues), you will most likely need to sell in the future at a discount as well.
· Condition Matters
Movies like “The Money Pit” exaggerate the cost and hassle of fixing up a home. But hyperbole aside, fixing up a home takes time and costs money. So before actually purchasing a property, it is extremely important to have a thorough inspection. This minimizes the possibility of an unexpected big expense in your first year of ownership.
A thorough home inspection will cover all major systems in the home including plumbing, electrical, HVAC, roof, and any signs of water intrusion or foundation issues. You might also consider an additional camera inspection of the fireplace and/or main sewer line. You will need to pay for these inspections before buying the house.
Most of the time when “major systems” issues are discovered during the course of the home inspection, a good real estate agent broker (real estate agents are officially called “brokers” in Illinois) will help buyers figure out the costs of those needed repairs and negotiate with the sellers a fair resolution to those added costs.
But, if based on findings of the inspection, you decide you no longer wish to buy the house, you will be out the cost of the inspections. However, the inspections will have saved you money in the long run.
· Your Team Matters
When you purchase a property, you’ll want to do it with help and guidance from experts in home values, finance, and real estate law. Your team should include a knowledgeable real estate broker who patiently listens to you and is not just in it for the sale.
You might find a property early in your search or it might take months to find it. Unlike the TV show, a great real estate broker will not limit you to three showings or put a deadline on your search.
Also, your most helpful real estate broker will be able to connect you with the other qualified experts you will need – a well-respected loan officer, an attorney who really understands the intricacies of real estate law, and a home inspector who is certified and very experienced.
Just like “it takes a village…”, it takes a team to “close” a real estate deal!
· The Future Matters
Looking toward your future is important even though no one has a crystal ball that gives you the details. Still, when buying a house you’ll want to give some thought to your future needs.
Consider this: today the average buyer stays in their home for 11 years – which is up from our previous 5-7 year average. If you want a 2 bedroom home today but plan to have children, you might want to consider whether 2 bedrooms will still work for you in 5-7 years.
Or if you really prefer to live in a specific neighborhood, but “in the meantime” are considering settling for a different one, you may want to think again. You can change many things about a property but you cannot change its location.
So if you’re considering purchasing a home in the future contact TEAM BARNETT to help you make sure that what matters most for your particular real estate needs is attended to in the best possible way.