Top 13 Things to Consider While Buying Home First Time

It might be worth buying a home because its a buyers market in Phoenix and what you’re paying in rent you could actually save money paying a mortgage and build equity. Consider these 13 things before buying a home as first-time home buyer

home inspection by RJ Palano

  1. Go to a bank and get pre-approved so you know what market to look in. Dont find the perfect house only to realize its outside your budget.
  2. I know its already been said but the absolute most important thing you can do when buying a home is get a home inspection. If you get one and he didnt seem thorough, get a different one. It may seem redundant and throwing money away but its like a fart in a whirlwind compared to a major problem. Get a good home inspection.
  3. Don’t be afraid to haggle at the bank about interest rates or compare offers from another bank, particularly if you have good credit.
  4. There is no way to know how far under list price to go. Look for similar sales in the neighborhood and see what they are going for, then shoot around there. The worst they can do is say no. They dont break your knees because you sent an offer that insulted them.
  5. Dont buy more house than you can afford. You can always pay down a mortgage faster and sale your home that is now too small down the line. Do NOT buy a home at the top-end that you can afford. Just dont. Dont even think about it. If youre pre-approved for 250k…then look around 175-180 for example. Be conservative!
  6. Be realistic about fixer-uppers. Everyone thinks they are fixer-uppers until they have to start fixing-up. Its not super magic fun time like it appears to be on the home improvement commercials and channels. Home improvement is hell and not only can it ruin your finances it can ruin your entire marriage and life. Thats a little hyperbolic but that not much! Be realistic here and then be a tad more conservative just to be safe.
  7. Dont assume the mortgage payment is the only money you have to spend to maintain your house. It will need upkeep and that costs money. Figure, AT LEAST, about two payments a year for routine maintenance. Thats just ballpark and your mileage will vary but you should plan for unexpected expenses you would have never thought of having never owned a home.rj palano realestate tips
  8. Lawns are more expensive than you think. While this is true of everything lawn care can add up fast. Whether you are paying people to do it or doing it yourself. Everyone wants a massive back yard to run fifty dogs, some cows, and half the school through but then no one wants the shed full of lawn mowers and things necessary to maintain it. Lawns are also an investment in time. Some people enjoy this, some people have to pay other people to enjoy it for them. Decide which one you are and then budget because your lawn is your service to your whole community.
  9. Pools are basically a pit in your yard that you pour money and water in.
  10. Be frank and honest with your realtor about what you like and do not like about some the houses. Do not walk into the first house and make an offer. Look at more houses.
  11. Dont decide to buy or not buy based on cosmetic things. Most mortgages are 30 years. Don’t rule a house out because some second-hand couch you happen to own right now wont look good in the living room. That’s just an example…but think long term about what your needs are and how the house is going to fit into that. Buying is NOT like leasing. You cant just wait it out until the lease is up in 6 months and skip along on your merry way none the wiser. Be mindful of that.
  12. If you still want to buy, please Get a home inspection and find an excellent inspector. Do not use the realtor’s – I speak from experience. Check everything to know what you are getting. Make sure that you position your budget to have cash on hand for your next property, cover costs on this one, and enter into the process as if this is a business deal. It is! No emotion. Always be positioned to walk away.
  13. Closing will be stressful. It always is. That’s just how it is.

Anyways, good luck. Owning your own house castle is very rewarding.

 

 

 

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#buy-house, #home, #homebuyers, #realestate, #rj-palano

Buyer’s Market & Seller’s Market – What Does It Mean?

This is good to know for agents, buyers, sellers, and investors. And anyone else who breathes air.

As a Realtor who’s been practicing for nearly ten years, I have probably heard it a thousand times: “Oh, well, we’re in a buyer’s market” or “We’re in a seller’s market.”

So which one is correct? Well, both. Let me explain.

The real estate market is very LOCAL. How local? Extremely. You have to take it further than trying to evaluate the market on a state level, on a city level, even on a neighborhood or subdivision level.

So what makes a seller’s market? This is when the supply of homes is low, and the demand for homes is above-average. It’s actually defined as being when we go for six months having less than a six month supply of homes. A buyer’s market is when the supply of homes is high, and the demand is low. So why does that matter? It’s basic supply/demand theory. You have a lot of people selling homes, but only a couple of people who want to buy, so the many sellers are generally motivated to negotiate more to attract those couple of buyers, since they want/need to sell.

Okay, now for an example of just how close you have to look at the specific area in which you want to buy, in order to determine what kind of market it is. I live in the New Orleans Metro area, and it’s generally a seller’s market here. However, because of the Biggert-Waters Flood Insurance Reform Act, there has been the potential for enormous flood insurance rate hikes. That’s caused many people to stop buying in areas that are in high-risk flood zones (anything other than flood zones C, B, or X) because they don’t want to get hit with enormous rate hikes later this year. In one neighborhood, the number of homes for sale peaked at 58, a record high. That subdivision is in a buyer’s market, while subdivisions nearby that are not in a flood zone, are generally experiencing a seller’s market.

Let’s keep going and zoom in just a little closer. There’s one subdivision I’m aware of that has some of the most expensive homes in the city. It’s generally a buyer’s market, because there just aren’t that many people who can afford that much house right now. HOWEVER, there is on street in there that happens to be the main boulevard, where homes rarely come up for sale. When one does, it’s snatched up almost immediately. So the rest of the subdivision can be in something of a buyer’s market, while the main street has it’s own little seller’s market happening. Must be nice for those folks! The same thing might be seen in subdivisions where one street is on the lake or other, similar situations. In the same breath, it’s important to note that you might see a buyer’s market on a street where it’s the only street that backs up to soccer fields, or a highway, etc.

So what’s the point of all this? Take the news reports on the national real estate market with a grain of salt. It’s sort of like saying, “It’s sunny in the U.S. today.” Well, sure, in Detroit it’s sunny, but in New Orleans, it’s raining. Look closely when buying or renting. Have your agent closely examine the comparable sales and determine if there’s anything that may affect the local market where you’re buying one way or the other, and act accordingly.

#buyers-market, #homes, #housing, #housing-market, #investing, #realestate, #sellers-market