Still A Good Time to Buy A Home
Posted on June 19, 2008
Filed Under Life Strategy, Lifestyle |
Contrary to a lot of popular opinion, now is a good time to purchase your first home or to upsize if you can afford it. I bought my first home when I was twenty years old. I had a good job, good credit, and I could afford the home I was purchasing. The process is a little different today but the basics are still the same.Even though the Internet gives buyers general access to home listings, most first time buyers and even more experienced ones are better off using a real estate agent.
Your opening bid should be based on the sales trend of similar homes in the neighborhood you are considering. This is where an agent comes in handy - make them earn their money by doing the research and giving you the figures.
Let me warn you about the process of buying a home. A motivated buyer will usually find a home within two weeks. Intentionally slow down the process. Buying a home is one of the most complicated financial decisions you’ll make in your lifetime. But the benefits of buying a home far out way the challenges.
Getting pre-approved will take a lot of the stress out of the process and it will let you know how much home you can afford. It will also let realtors and sellers know that your offers are serious. A few months before you start house hunting, get copies of your credit report and take care of any possible problems.
Here are some good questions to consider up front. What’s the difference in asking price versus selling price in recent sales? How long are the houses in the neighborhood typically on the market?. How long has the house you’re considering been on the market?
Be prepared to go back and forth during the negotiation process until a final number is agreed upon. Remember that generally verbal offers concerning real estate are not binding, so make sure that all changes to your offer to purchase get made in writing and are initialed by all parties.
I have a lot more I could say but let me leave you with a few resources. Here is a good article for first time buyers by Wachovia: Click here.
Here is a calculator to help: Click here
Do not forget that there are always people who try to capitalize by taking advantage of others. Here is a recent article about mortgage fraud I just read today: Article link
Until next time, Jim
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