5 Things Homebuyers Should Know – and guess what? They DO!
We all know that a house is the biggest asset that the majority of Americans will ever own. But while most of us delude ourselves into thinking that we actually know something about real estate, the truth is that few of us have any idea what we’re talking about. We have compiled our biggest homebuyer must knows. Please allow us to be your partners in one of the biggest decisions you will make!
- When you buy a home, you’re making two purchases – You are buying the home, and you are buying the money to buy the home. A mortgage is not an incidental expense, it may be the most significant piece of the transaction. For every 1% rise in interest rates, home prices must fall by 10% in order for you to maintain the same monthly mortgage payment. At the end of the day, what matters is your monthly payment. This is the time to take advantage of low rates; they add much more buying power to your purchase than low prices.
- Homes are like people – they all have problems. All houses have issues; that is what the inspection is for. And inspectors are professional pessimists which is why we love them. They will note $10.00 for a burned out light bulb assuming you will call in a professional to change it. So overreaction to a inspection report will only make you miserable. Issues fall into one of two categories – either it is something you can live with …or not. Look at it logically. If the issue didn’t come up until a year after closing, what would you do? If the answer isn’t “sue the inspector”, then calm down. Sellers need to be willing to either fix a problem or credit the buyer with some money to get the job done. Buyers need to be willing to fix the problem or ask for a credit from the seller to get the job done. It is as simple as that. Some houses have more issues than others but they should only be a deal killer if one side draws a line in the sand.
- As Realtors, we are your PARTNER, not salespeople. We are focused on helping you find a great property, not selling you something. Finding a home is like hiring someone, we are going to do a lot of interviews. But you are our partner in this relationship, so you need to be present, cooperative and know and respect boundaries. We are the A Team and we are notoriously responsive and reliable BUT we have other clients and a life outside of Real Estate. We get up early, start working and by 5:30, we are ready for a glass of wine and dinner. Of course we know that both parties need to have a clear understanding of communication expectations so let us know how you like to be communicated with and how – text, email, phone, etc. (not sure what etc. means). BUT if we find a hot property for you (buyer) or a hot buyer (seller), you need to drop everything and start gunning the engines!
- HGTV is Fantasy Land – The only reality in reality TV is that it is not real. Hundreds of hours edited down to a 50 minute show is fantasy.
- Keep “resale” in the back of your mind – You may not think so now, but maybe, at some point you’re going to resell your home/condo and will want to maximize what you eventually get. When you’re buying your home, you’re probably not thinking of the day that you will have to sell it but you will be thanking yourself one day if you remember three little things … location, location, location! The caveat to this is that “location, location, location” tends to change over the years so just be happy.