Want to make sure you make informed decisions about your next home purchase? Listed below are some tips that will help you “buy smart” while you’re looking for the perfect home. Some invaluable resources to help you with this list are an experienced real estate agent, a qualified mortgage broker, and well-researched books on real estate and home buying.
1. Understand the Purchasing Process
Before you begin the home buying process, understand what goes into making an offer, contingencies, appraisals, mortgage financing, and the different aspects of earnest money. Be sure to review the documents you will be signing.
2. Does This Make Financial Sense?
If you’re buying the home as an investment property, make sure that you know what kind of return you’ll be getting. Try to aim for a 5% rate of return.
If you’re buying the home as a personal residence, ask yourself how long you plan to stay there. If you would own it less than five years, it may make more financial sense to continue renting until you’re ready for a more long-term residence. And because owning a home is a long-term commitment, make sure you buy a house that you could really love for years to come.
3. Shop Smart
We all want a good deal. But don’t get your heart set on a foreclosure or short sale through a courthouse auction or distress sale. Those can be complicated and may fall through the cracks. Instead of wasting energy, resources and time, it may be best to stick with conventional MLS listings.
4. Home Owners Association (HOA) Condition
This is one of those items that most buyers do not even know to review. The finances and operations of an HOA are becoming a huge risk issue nowadays. If you do not understand and review them, you may get a surprise in the form of sharply higher fees or special assessments in the years to come. Meet with a knowledgeable person to help you decipher them. The goal is to avoid a community where the association is in really bad shape.
5. Home Inspection/Fix Up Costs
Having a home inspection is one of the most important things you can do as a buyer. During the inspection you should be putting together a list of what needs to be repaired and replaced. Then you can take your list to a home improvement store to get a feel for the total costs to bring the property up to the standards you desire. This should help you negotiate any seller’s credits and/or terminate the deal if the costs are too much.
6. Title Insurance, Title Issues, and Lot Lines
This is another purchasing task that few people review. And while the risk of an issue is very low, the potential losses are huge. Taking fifteen minutes to review your title abstract/history and the plat or a survey of the parcel, then walk the property. It could save you endless headaches and financial stress down the road.
These are just a few of the things you should consider before buying a home. If you have any questions, or are ready to get started, give me a call and let me help you buy your first East Texas home!
Re/Max Legacy – Kerissa Payne, Owner
2808 S Main St, Suite M
Lindale, TX 75771