When you buy a new home it is emotionally much like buying a new car. They both are larger ticket items and can make for a very exciting time in your life. However, buying property is typically one of the larger purchases that you will make during your lifetime so it is important that you don’t overlook the critical steps before you write up any offers. Here are some common things that get overlooked that you want to be sure you consider.
“People focus so much on mortgage payments and closing costs,” says Brendon DeSimone, author of “Next Generation Real Estate. “What they don’t realize, until after the fact, is that there are expenses like oil or propane and landscaping that are built into home ownership.”
Buyers should budget for all expenses that go into maintaining the home. Sometimes operating costs can be shared by the seller which can help you budget. Finance experts also suggest that you put aside approximately 1% of the home’s value annually for repairs and maintenance.
Failing to Consider Resale Value
Today’s homeowner does not tend to stay in their home for as long as they used to. When you are purchasing your next home it is wise to consult with your realtor for current and past trends and comps. This can aid you in predicting how the home will appreciate in years to come. The home may fit your needs well today, but your situation may change and you will want to be sure you can sell if you need to.
Not Researching the Neighborhood
Making sure that the neighborhood is great for schools, services and close to your place of work are important. However, going above and beyond is recommended. Visit the area during different times of the day. Also, it is a wise idea to talk to neighbors and get a sense for the community.
Failing to Research the Homeowners Association
“Never close on a home without doing serious due diligence on the homeowners association,” says DeSimone. Many HOAs are supportive, but there have been cases when homeowners have not agreed on select issues. Also, you will want to know if there are a lot of delinquent homeowners because “if there is an upcoming assessment, or there are delinquent homeowners, the HOA and you will have to cough up the money to cover it,” DeSimone says.