6. Assuming your first offer will be accepted. With home prices becoming more affordable, more people are looking to buy. You may encounter competition for a home you want so don’t get too discouraged if you lose out on a house.
5. Failing to budget for property taxes. Don’t forget to factor in property taxes (and the inevitable increases) into your budget. Do a little research - find out if the tax rates have gone up or down over the last few years, as well as the assessed property values. Be prepared.
4. Underestimating the cost of owning a home. Many home buyers don’t consider the cost of repairs and maintenance when they purchase a home. Things break and need to be fixed. Take a look at how well previous owners have cared for the home, as well as the age, before buying. If available, consider purchasing a Residential Service Contract (or ask your Seller to pay for it). These contracts could cover the cost of some repairs after closing. Your utility costs may go up as well so take that into consideration when budgeting. It would be wise to start a savings account for just such maintenance.
Check back later for #5.
3. Showing your true feelings about a home. Don’t let the seller’s agent know how much you love his or her listing. That gives the Seller an advantage during negotiations.
Check back later for #4.
2. Assuming foreclosures are great deals. Due to the significant decline in home values, purchasing a foreclosure may not be the best choice. The lender will still try to recoup their investment even if the home value has dropped. You must also take into consideration possible damage to the home from the previous owners, vandals, or from just sitting vacant. The price of the home, together with repair costs, may not make it such a great deal.
Check back later for #3.
1. Not knowing how much they can afford. Before you fall in love with a house you can’t afford, talk to a qualified lender and get pre-approved for a mortgage. Then you’ll know in which price range to look.
Check back tomorrow for #2!
According to the National Association of Realtors, home resales rose 10% from September. It was the highest sales level since February, 2007. This is partly attributable to the first-time buyer tax credit, which was set to expire in November but has now been extended through April 30, 2010.
According to Freddie Mac, interest rates on 30-year mortgages remain below 5%, averaging 4.83%. Interest rates on 15-year fixed rate mortgages fell to 4.32% this week. This news, together with the extension of the homebuyer’s tax credit, makes buying a home a smart decision.
All buyers in Texas should be made aware of flood risk and have their facts straight about insuring their property. Twenty-five persent of all flood claims come from areas considered to be a low or moderate risk. FEMA makes a good effort at drawing flood plain bounderies, but rising water doesn’t stop at an imaginary line. For more information about flood insurance, risk of flood, and tips for homeowners, visit Floodsmart.gov
Nine out of ten homebuyers say they want environmentally friendly homes. The “green” features homebuyers are most interested in are as follows; 90% want reduced heating & cooling costs, 73% are interested in energy efficient appliances, 70% want energy efficient lighting, 51% care about an environmentally minded community and 49% are interested in green landscaping.