So...you are in the market for a new home? I can help!!!
You might ask...What things should you be thinking about? Let me help you work through the things that you hope to accomplish by a move to a new home and help you find the best opportunity for your family.
Is this a good time to buy a home? There has never been a better time to buy a home! You might ask why that is. Well, there are a good number of reasons that point to this being a great time to purchase a home.
- Real Estate follows simple economic principles of supply and demand. The greater number of homes on the market, pricing responds accordingly, the fewer number of homes on the market, the more challenging it can be to find the right one! The market has been improving and there is a good balance of inventory on the ground right now.
- Historically low interest rates. Never before in history have rates been so competitive. The difference between the cost of a home and the price of a home is the price that you pay to own it. If you are financing a home, the rate is that differential. The lower the rate, the lower the mortgage payment.
- But I want to sell my home for the highest price and buy one at the lowest price. Wouldn’t we all!! However, there are economic principals in play here as well. If you sell lower, you also buy lower. If you home sells for less than you would desire, the difference in the interest rate, coupled with the opportunity to buy your new home for less, can make up that difference in most cases. We will be happy to show you what that looks like and will be happy to address that further.
How do I begin the process of determining where I want to live? Too often, the search begins for the property first, rather than the area or neighborhood that you want to be in. Yes, you live in the home, but we have worked with so many people through the course of time that wished that they had considered the geographical area and neighborhood first and the home last! You would purchase the less than perfect home in the perfect location, rather than find the perfect home in the wrong location! Location…location…location….. You define the perfect location for your life!
- Determine the geographical area that you choose to live in! That may be defined by how long of a drive do you want to go to work each day, or the school system that you would like to be zoned for.
- After you determine the geographical area, determine what type of community that you would like to be a part of. There are communities that have sidewalks, streetlights, or pools, parks, etc. Determining those things are important on the front end as that that will narrow the search area for you.
- Once you determine the area and neighborhood, then start thinking about the type of home that you would like to live in., ie one level, two story, master on main, etc. When you search for homes, look for homes that will fit how you live in your home. Don’t be consumed with the amenities as amenities can be changed! Look for floor plans that fit how you live.
How do I know how much home that I can purchase? That is a great question! It is a great idea to contact a lender and have them prequalify you for a home. Most buyers think that they can afford “x” and they are not really basing that on formal information. The reality is that we don’t buy sales prices, we purchase a home based on the cost per month. That is the difference between cost and price! Below are some general guidelines to go by and things to think about when talking with a lender. We are not a mortgage lender and the information contained here is merely information as a general guide for you to gain more information for the appropriate source!
- Remember that lenders only prequalify you based on very general guidelines. They take gross monthly income and the total debt can’t be more than 36% of that amount, in which housing can’t be more than 28% of that 36%.
- In the 36%, lenders will ONLY count minimum monthly payments on debt. A lender will not consider power, gas, food, childcare, entertainment, lifestyle choices, etc. So, once you have been prequalified, use that amount that you are qualified for and factor in how you like to live your life. From there, you will be able to determine a comfortable budget that you would like to spend for a home that allows you to live comfortably in your new home.
Should I work with a Realtor to find a home? Absolutely! Whether it is me or another real estate professional, it is invaluable to have a professional to work with you in the purchase of your new home.
- As a consumer, you are entitled to have representation in the purchase of real estate. You can easily engage a Realtor to assist you as a Buyer’s Agent in a real estate transaction.
- Purchasing a home is generally the most expensive endeavor in most people’s lives. Information is readily available via the Internet however; the real estate transaction still remains a complicated transaction. Use a professional.
- But won’t it cost me money to use a Realtor? The cost of a real estate professional is factored in the commissions paid by the person who has the home for sale. In the case of a FSBO, commissions can in most cases be negotiated.
I would be happy to meet with you and help talk through these things out for you and help you find a wonderful home for your family! Please contact me and I will be happy to schedule a time with you to discuss your needs and desires in a new home and begin the process for working with you to accomplish your goals and dreams!
Email me today! I look forward to hearing from you!