WHAT TO CONSIDER BEFORE BUYING YOUR DREAM HOUSE -- PART 3

WHAT BUYERS ARE THINKING BEFORE BUYING

By Stephanie Woods

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!

 Your referral is our highest compliment. Remember to "LIKE" us on https://www.facebook.com/Stephanie.Woods.Team and follow us on Twitter @prescottreo. #PrescottValleyRealEstate

WHAT TO CONSIDER BEFORE BUYING YOUR DREAM HOME -- PART 2

WHAT BUYERS ARE THINKING BEFORE BUYING

By Stephanie Woods

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.

HOW FAR DO I WANT TO COMMUTE--When you purchase a home, you're buying shelter, a lifestyle, a community....and a commute. Before you write an offer, you might want to make a "dry run" from the property to your office during commuting hours to see if you can stomach the experience and the cost. If gassing up twice a week and jacking up your blood pressure twice a day isn't your style, think again before moving too far from your workplace.

     WHAT CAN WE AFFORD INCLUDING TAXES AND INSURANCE--See what you can afford. Use Bankrate’s  mortgage calculator to see what your payment would be.  Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use this Real Estate's home affordability calculator. To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy. For an idea of what you'll pay in taxes, Zillow publishes property-tax information for homes all over the country.

    

WHAT ARE SCHOOLS, SHOPPING CRIME LIKE IN THIS AREA--- Buy in a district with good schools. In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

 

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!

 Your referral is our highest compliment. Remember to "LIKE" us on https://www.facebook.com/Stephanie.Woods.Team and follow us on Twitter @prescottreo. #PrescottValleyRealEstate