As a first time homebuyer you are faced with many uncertainties about your future investment property. Gardner Realtors can help you to understand the process and provide knowledge and experience to give you peace of mind. If you are pre-qualified give us a call today so we can help you and Welcome you Home. Keep in mind being a homeowner isn't just taking a leap of faith and making an investment. It's a life style that you can control. Before you decide on buying a home know these 23 things.
Location vs. Square footage- Being close to the action of uptown often equates to less square footage. If your looking for a home to grow in and expand your family space is the place. What's your priority?
Commit without doubt- Homes can be expensive and require unexpected repairs due to mother nature or a latent defect. Neighborhoods may have HOA fees. Taxes may rise as the surrounding area improves. Home Insurance coverage may require additional coverage for flood or wind depending on the location. Be aware of all cost associated with homeownership.
DIY and save thousands- If you have the skills and time there are numerous projects you can do to improve your homes worth without hiring a costly contractor to do it. Knocking out load bearing walls can make your home come crashing down on you. Know your strengths and weakness and hire if necessary.
Down payment=Equity. Think of equity as being that much closer to owning your home with less debt.
School Districts influence home values- If your moving to an area for better schools, home prices may rise. However, often these areas have a better resale value as well.
Know your boundaries and easements- Have your property land surveyed for accuracy so as not to encroach on your neighbors property. As well be aware of easements attached to properties. Is there a cable box, fire hydrate, or other utility box located on your property? If so, this is an easement in gross and the utility company must have access at all times.
Neighborhood building plans- The city may be clearing a park, or adding a street, lights, sidewalks to improve the surrounding area. These may increase the amenities for your area, while also adding a special assessment tax to you.
Save for improvements- Use the 1% rule. If your home is $300,000 you will spend roughly $3,000 annually for maintenance and repairs. Some years may require more if a new roof is needed, while others years may be much less as items such as hot water heater have been recently installed.
Review the homes disclosure and have an inspection done- If any items on a property disclosure have been a pervious issue inspect the items carefully, and inquire with your home inspector for anything that seems amiss, or may require maintenance down the road. If recent work has been done, ask about any warranties or guarantees from the company that are transferable with the home.
Negotiate- If a home inspection has flaws use it to your advantage to have the seller repair the item or ask to reduce the price allowing you save money and repair the item after the purchase of the home.
Real Estate is an investment- Like all investments it has its own risk. You can be stuck flipping houses hoping for a high return but mother nature swipes it away before you get that opportunity to sell or the economic market crashes as we experienced in 2008 causing foreclosure to decrease property values in your own neighborhood. You can minimize your risk. Let a Gardner Realtor Agent assist you and tell you how.
There is always a Trade Off- You absolutely must give a little to get a little! If your wanting a home with high-end appliances, granite countertops, walk-in closets, and custom built cabinets the sticker price comes with it. Are you willing to give up higher education as a full-time student to work so you can afford your new home? Or would you rather live within or below your means to have more personal and financial freedom? What sacrifice are you willing to make?
Read All documents before signing and closing- If your are uncertain about the paper work of any documents have an attorney explain them to you. While most Agents and Bank/Mortgage Representatives can explain various forms in simple terms for you to understand, neither is equipped to give you legal advice. Always read the closing documents, disclosures, and CC&R's (conditions, covenants and restrictions) before signing.
Get Pre-Qualified before falling in love with a house- At Gardner Realtors, we are here to assist you to find that dream home you can afford without breaking your bank or heart. FHA (Federal Housing Authority) offers first time homebuyer programs with good credit loans with 3.5% down payment.If your military the Department of Veteran Affairs offers loans come with zero down. There are two ways to secure a loan: Mortgage Broker or Lender. Opt for the Mortgage Broker.
Save money for a down payment- This provides you with leverage to make an offer, use towards equity, or opt for a higher price point within reach.
Sound advice- Don't spend every dollar you qualify for to purchase your dream home. Looking at homes in a lower price range can produce incredible results allowing you with more money in your pocket for upgrades you want and lower mortgage payments.
Check out non-profit Organizations for Smart funding- As a first time home buyer there are many nonprofit organizations in your community that will assist you with funding. To name a few in the Gulfport/Biloxi area: Ms.Home Corporation,Down payment assistance program,Mortgage Credit Certificate, Housing Assistance for Teachers (HAT) and HOYO (Home of your own). These programs will advice you whether you should continue to rent or can afford to own a home.
Caveat Emptor- "Buyer Beware." Be careful of purchasing real properties (especially flips). Not all renovations or investors use quality material or hire licensed professionals to do the work. If a home has recently had a new roof, ask who the contractor was and do your own research. What is contractors reputation, do they stand behind their work? Look them up on the Better Business Bureau for customer reviews.
It's all about the strategy in a bidding war- I recommend an unconventional strategy to first time buyers to make a comfortable offer on a home with the contingency of paying $1,000 over the competition offer up to an affordable amount for any home they have their heart set on. Example: If your pre-qualified for a $250,000, the home is selling for $210,000, and the competitive offer is $208,000. Offering a contingency for the $1,000 over the competitor will bring your amount for $209,000 without spending every dollar while securing the home you want.
Offer as close to the asking price- It is offensive to sellers to get a low-ball offer. Often sellers are working with an Agent whom has evaluated the comparison of homes in the area in which the asking price is based. Although, sometimes low-balling works in a buyers market, making an serious offer as close to the selling price shows good intentions and your interest.
Drive by and examine exterior- While the interior of a home is one of the most important aspects, don't forget the exterior. Are there cracks in the foundation, tree roots coming up along the walk path, or numerous plants growing a jungle? Landscaping can be just as expensive as upgrading the interior of a home. First time homebuyers should also drive-by the home they like after it rains to check for areas that hold standing water.
Decisions, Decisions- Should you pay a higher price point for the home? There are no crystal balls to predict what can happen. You might opt for a fixer upper, that turns out to be money pit, or a great investment. Or, you might pay extra to get the lake view you dreamed of that floods. Only you have the ultimate choice- At Gardner Realtors, We're here to help you make the best choice for You!