When you’re buying a home, it’s important to offer a good price to be able to land the property of your dreams. You also don’t want to overpay for the house you’re buying. If you want to know for sure that you’re paying a good price for a home, you’re going to need to do some price comparisons. Take a look at recently sold homes in your neighborhood of choice and see what the going rate is. If all of the homes are similar in the area, it will be easy to find out how much the home you’re buying is worth. There are a few ways that you can do comparisons to make it easier for you to determine the right price for the home you want to buy.
Take A Look At The Neighborhood
There are certain features that attract nearly everyone to certain neighborhoods. From the safety and friendliness of an area to the schools that are nearby, to the stores, and public transportation access, people are attracted to what makes their lives easier and more enjoyable. The bottom line is the more desirable the neighborhood, the higher the price of the homes in it.
Check Out Public Records
With the Internet, it’s pretty easy to access public records these days. You can take a look at what properties have been bought and sold for in recent times int the area of the homes that you’re looking at. You can even take a peek at some historic information to help you see if the area is up-and-coming.
Is The Neighborhood Going To Become Trendy?
Sometimes, you can find a great property for less in a neighborhood that hasn’t quite reached it’s full potential yet. If there’s a slot of new construction going on, that’s a good sign that the neighborhood is moving on up! Especially attractive features in a neighborhood are new schools, new shopping centers, or new parks.
There Is A Tipping Point To Growth
If it seems that a neighborhood is growing a bit too much, it may actually decrease the value of your home. Huge commercial developments can actually be detrimental to the value of a property. Where there’s a lot of people, there’s also a lot of noise and traffic. That’s usually not a desirable factor in a neighborhood.
Meet In The Middle
When you’re looking at the price of properties, the best bet is to meet somewhere in the middle for what is reasonable. While you don’t want to buy the highest priced home in the neighborhood, you probably don’t want to lowest price for that neighborhood either. Working with a more average number is a good option because your home helps any home lower priced than yours, while any higher priced homes help to increase the value of your home. It’s a win-win situation when you choose a property based on price and keep this strategy in mind.
You have finally found what you believe to be the perfect home. Then, something rings off in your gut. Maybe it was poor communication with the seller. Maybe a big change happened in your own life in a short period of time. All you know is that you really want to back out of the deal. You might have a lot of questions. Is this possible? Are there consequences?
The short answers to these questions are yes, and yes. There is a possibility that you could be sued by your backing out of a deal. It’s rare that buyers are actually mandated to buy a home that they don’t actually want to buy. Sellers will, however, be able to keep any money that has already been paid as a deposit after a certain point in the dealings on a home sale. Sellers may also be awarded damages in some cases.
Legally Backing Out Of The Contract
There are a few circumstances where buyers may have a legitimate right to back out of a contract on a home. If certain contingencies weren’t met, as a buyer, you’re free and clear to walk away. These circumstances include:
- Financing falls through
- You couldn’t sell your former home
- Flaws in the home have not been disclosed
- Property boundary line issues exist
- Liens are against a home’s title
- The seller does not meet the terms for improvement
- Undisclosed uses exist for the land such as a pathway
If none of these reasons apply to you and you still have reservations about buying the home, you may need to sacrifice a huge chunk of money. The way that you exit the deal will all depend upon the contracts that were signed previously.
Other Buyers Are Waiting For The Home
If you are in a tight market and decide to back out of buying a home, you could be in luck. Often, if there’s a backup offer, it’s enough to satisfy a seller that at least the home will be sold promptly. However, don’t hold you breath when it comes to getting your deposits back. If you have already “promised” to buy a home, you can kiss the deposit goodbye, unfortunately.
Always Hire A Real Estate Attorney
Whether your state requires it or not, you should always hire a real estate attorney. These professionals can help you to read each and every line of the contracts that you’re signing when buying a home. They will make suggestions as to how you can protect yourself through the process along the way. It’s a good investment to hire a lawyer when you’re buying a home.
Understanding how much your home is worth is important for a number of reasons. For one, when you go to sell your home, you’ll have an idea of how much equity that you’re working with. You may need to either refinance your home, take out a loan, or line of credit. Knowing the current market value of your home can give you a good idea of your finances and what to expect. Many people believe that their home is worth more than it actually is. In reality, your home is only worth what people will actually pay for the property in a certain time frame.
Some websites offer basic ideas of how much your home is worth. You can also use the Internet to search for comparable properties and see what has been sold, how much it has been sold for, and how much other homes that are similar to yours in the neighborhood are worth. You’ll need to be sure that the comparing properties include the same types of features as your own home in order to get a good estimate.
Consult A Realtor
Experienced realtors in your area are great resources for helping you to determine your property’s value. Many agencies offer free market value analyses, which can help you to see where your home would fall in the current real estate market. Realtors don’t get paid unless your home sells. They can use their many resources to work with you on the sale of your home and help you to price it appropriately.
Hire An Appraiser
If you want to dig a bit deeper in the pricing of your home, you’ll need to shell out a bit of cash. You could hire a certified appraiser who will dig deep into your property to determine the value. Once you find a buyer, another appraisal will happen on the property. The buyer pays for this. If you really want a good idea of how much your home is worth, hiring an appraiser beforehand is key. Keep in mind that appraisers may come up with slightly different estimates for the same home.
Know The Key Things That Affect Home Value
There are a few big factors that influence just how much your property is worth. While you may love your big kitchen, it goes a lot further than that. Factors that contribute to how much your property is worth include:
- The amount of land that you have
- The neighborhood your home is in
- The schools your home is near
- How many square feet your property is
- The condition of your home
- Any updates that have been made to the home
- The types of appliances you have
- Has the home ever been foreclosed on?
- Is your home energy efficient?
Based on all of this information, you’ll be able to get a good idea of what your home is worth. Beware of things that can cause a major financial setback on your home’s value like an urgent need for roof replacement, dated windows, or an unknown crack in the foundation. Getting an idea of what your home is worth is a great way to keep on top of your own assets whether you’re prepared to sell or just curious about numbers.
For a first-time homebuyer, it is important to realize that a home seller's acceptance of your initial offer provides no guarantees. In fact, a homebuyer will still need to complete a home inspection before a home sale is finalized.
A home inspection is a valuable opportunity to learn about any potential issues with a house. After the inspection is finished, a homebuyer has the opportunity to submit a counter-proposal, rescind a proposal or keep his or her current offer intact.
Ultimately, hiring the right home inspector can make a world of difference for a homebuyer. With an expert home inspector at your side, a homebuyer can gain insights into a house's pros and cons and determine whether a house is a viable long-term investment.
So what does it take to employ the right home inspector? Here are three tips to help a first-time homebuyer do just that.
1. Conduct an Extensive Search
Search far and wide for a home inspector – you'll be glad you did. If you allocate the necessary time and resources to locate a skilled home inspector in your area, you can boost your chances of identifying potential home problems before you complete a home purchase.
A first-time homebuyer can begin a search for an expert home inspector online. A simple web search is sure to provide plenty of results, and a homebuyer then can perform an in-depth review of local home inspectors' credentials.
Furthermore, don't hesitate to ask family members and friends for assistance. If a loved one recently sold a house and had a great experience with a home inspector, it may be worthwhile to hire this same professional to perform your home inspection.
2. Look at a Home Inspector's Background
How many years of industry experience does a home inspector have? What are past clients saying about a home inspector? And how does a home inspector approach each job? These are some of the questions that a first-time homebuyer should consider as he or she assesses a home inspector's background.
In addition, a homebuyer can always reach out to a home inspector directly to learn more about this professional's experience. A face-to-face or phone conversation with a home inspector may require only a few minutes to complete and can help a homebuyer make an informed decision.
3. Consult with a Real Estate Agent
A real estate agent can help you discover your dream house as well as put you in touch with the top home inspectors in your area. As a result, this housing market professional will ensure you can purchase a first-rate house that matches or exceeds your expectations.
If you're uncertain about whether to hire a particular home inspector, it never hurts to consult with a real estate agent. By doing so, you can gain honest, unbiased tips to determine whether a home inspector is the right person to evaluate your residence.
Employ the best home inspector prior to completing your home purchase – use these tips, and a first-time homebuyer should have no trouble hiring a superior home inspector.
There’s a lot of things to think about before buying a home--some financial, others personal. Most people tend to focus on one or the other. However, both are instrumental in choosing the right house and buying at the right time.
In this article, we’re going to talk about some of the ways you can determine if you’re ready for homeownership. We’ll discuss things like credit scores and down payments, but also important life factors like your career and future plans.
Getting your finances in order
There are a few simple things you can do right now that will help you understand if you’re financially secure enough to start looking at houses. First, you’ll want to look up your credit score.
Lenders strongly consider your credit when determining how much risk is involved in lending to you. A higher credit score can not only get you approved for a mortgage, it can lower your interest rate and make you eligible to borrow without having to pay private mortgage insurance.
The amount of money this saves seems trivial in the short term, but over the lifespan of your loan it can save you tens of thousands of dollars. So, read a free credit report and if your credit is lower than 700 start finding ways to improve your credit.
In the meantime, you’ll want to save for a down payment. While it’s possible to buy a home with a small or no down payment, it can come back to haunt you in the form of interest as you pay off your loan. Furthermore, many lenders won’t pre-approve you unless you make a down payment of a minimum amount (often 20% of the loan).
If you have a high credit score and you’ve saved for a down payment, another thing to check off your list would be proving your stable income. This can be difficult for the self-employed, contract workers, or people who have recently changed jobs.
Lenders want to see that you have a stable income history to ensure that you’ll be able to pay your mortgage each month. If you recently changed jobs or are in between jobs, it could be to your benefit to wait 3-6 months before getting pre-approved. In that time, you can continue to raise your credit and save for a down payment, further increasing your chances of getting a low-interest loan.
Preparing for homeownership
While the financial aspects of homeownership are important, so are the personal aspects. You’ll want to consider several life factors before buying a home.
First, think about your longterm goals. Do you want to live in the same area for the next 10 to 30 years? Will your career bring you to different regions or will you attend school somewhere else? These questions will help you decide if it’s a good time to buy or a better investment to save money while renting.
If you have a family (or plan on having one soon), you’ll also have to find a way to balance all of your living needs.
Finally, ask yourself if you have time for homeownership. Many people who are used to renting aren’t aware of the amount of time and money it takes to maintain a home. You’ll have more bills, you’ll have to mow your own lawn, and you’ll be responsible for maintenance of your home.