Dormant for the last five years, economic indicators suggest that the housing market is poised for a turnaround. Home prices hover around historic lows and mortgage rates remain attractive at 3.75 percent for a 30 year loan. Permits for new home construction have also increased, indicating renewed interest in the market.
Judging by these reports, it is the right time to get off the sidelines and become a homeowner. Making the leap from perennial house hunter to property owner can be a daunting decision. Preparation is crucial to making a stress-free home purchase.
Do you plan to live in the house Contractors Near Me Hiring or do you intend to rent it out?
Determine your motivation for wanting a residential property. There are insurance and tax implications for owner-occupied homes that do not apply to rentals, depending on state and local regulations. It may even be possible to find a property that can generate rental income while the owner lives in a different part such as in multi-unit complexes.
How much mortgage can you afford?
Set your financial house in order and pre-qualify for a mortgage. This way, your home-buying budget is predetermined. It will help to streamline your options in a housing market where good values abound. For real estate to be a good investment, buy at the right price. Review the comparable market analysis to determine a fair price for the home.
What features do you require in the home? What amenities would you or your family need?
When it comes to residential real estate, location is always a major consideration. Location will influence price and future value of the home. For families with school-age children, location will also determine your school district, access to playgrounds and medical facilities.
Will you prefer a strictly regulated community or one that is more laid back?
Homes in deed restricted developments tend to hold their value because there is some cooperation among residents guided by common rules. However, there will be additional costs involved in communities with homeowner associations. These costs should be disclosed prior to closing so that buyers can make an informed decision.
How does the neighborhood look in general?
While house hunters are often advised to check out curb appeal, it turns out that the curb appeal of the neighbors’ homes should be given greater consideration. Home buyers can change anything in the home after the sale is finalized but the neighbors’ yards will always be off-limits. Visit the neighborhood at different times of the day to get a better sense of what the community is really like.
Are you up to investing some elbow Types Of Contracts In Project Management grease to spiff up the property?
Homes that are being sold “as is” may require more work than a new home owner is willing and able to put in. While some renovations may be cosmetic, others may require major work and professional help. New homes with builder’s warranties would be the best option for those averse to renovations.
Residential real estate can still be a good investment. Buyers need to eschew the hype and focus the buying decision on their personal requirements.
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