Home sales didn’t dip during the 2020 pandemic. They didn’t even slow. In fact, they increased over the year. During the third quarter of 2020, sales of these properties went up over 10 percent more than the same time in 2019. With an increase in available homes and low-interest rates, it doesn’t seem like the bubble will burst. Thus, it’s a good time to look into the purchase of your own home.
However, you can’t go into it without some research. That leads to buying the wrong home that was too expensive from the start. Research is required to find the place you and your family will deem your castle. To help, here are a few items to look for when buying a home.
What Loans They Accept
Offers are sometimes rejected because of the way you intend to pay for the house. Conversely, some properties only focus on a certain type of financing. For instance, those available from a company like SoCal VA Homes mostly accept financing from VA loans for their Temecula real estate.
When you shop for a place you need to examine more than the number of rooms. Look at the fine print as well to discover the financing options. On top of this, organize your finances ahead of time to determine the types of loans you’re pre-qualified for. With that knowledge in hand, you can narrow your search.
Length Of Time On The Market
You can find a good deal on a home if you look at the length of time it has been on the market. A listing that’s a few days old tends to get the most responses in the form of showings and offers. Those that have been on the market for a month or more have lost their luster.
There are several reasons it ends up not selling. The area is not convenient or has higher crime rates. The property itself could be so different that it doesn’t fit into the neighborhood. The main condition that keeps a home from being sold is its price.
The longer it lingers the greater the chance its owner will decide to reduce the price. This is when you can swoop in and make an offer. Don’t go so low that it’s declined. Stay within the confines of the price reduction. This increases your ability to receive a positive acceptance.
HOA Fees And Property Taxes
Never consider the purchase price as the final cost. There are other items you may end up paying for. This is including any repairs or changes needed after the home inspection.
The most common of these are HOA fees and property taxes. Both can be exorbitantly high and add a good deal to your normal mortgage payment. In some regions, the New Jersey/New York area is an example, property taxes can be as high as $10,000 a year. This is a significant cost even when it’s split into 12 payments.
While lower, HOA fees are still hefty in some developments. Depending on the amenities and services, it can cost several hundred dollars each quarter. When you combine it with property taxes, your mortgage could end up being above what you can afford.
To stave off the shock, calculate monthly payments with a mortgage calculator. This online tool allows you to enter your home payment, rate of interest, and extra fees like property taxes and HOA. What the calculator returns will determine how you proceed.
The Home Inspection
Home inspections are a regulated part of real estate sales in most states. They’re done to determine the state of a property before purchase. In some situations, issues on the property can result in the sale being declined.
Don’t take the inspection report for granted. Carefully review the findings. If any issues need immediate attention, work with your agent so the current owner addresses them. If they decline, then discuss a price reduction. If that’s refused as well, then you might want to look into another home.
Buying a home has been a ritual of adulthood for decades, so take it seriously. Review the tips above and address each one as it comes up during the sale. If properly done, the result will be a comfortable home sold at a reasonable price.
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