7 Critical Factors Every Home Buyer Should Know
If you are considering buying a home in the near future, there
are several critical factors which you should be aware of. By and large,
the current market is a buyer's market. That does not mean; however,
that most buyers will be able to simply sweep in and pick up a sweet
deal for just pennies on the dollar. If you really want to take
advantage of the current market, you need to make sure you go in fully
1. First, you need to make sure you recognize that when it comes to real
estate a few months ago, or in some cases, a few weeks ago might as well
have been two years ago. Dynamics within the industry are rapidly
changing and you simply cannot rely on how the market looked even six
months ago. What someone was asking for their house a few months ago is
not relevant. You need to make sure that you update yourself on the
current market within the local area where you will be buying.
2. In addition, if you have previously purchased a home you need to make
sure that you do not fall into the trap of thinking that what you paid
for your last home is relevant. This is because it is not. You do need
to make sure that you give some thought to the difference between the
amount you will be selling your current home for and what it will cost
you to purchase a new home. These are definitely much more realistic
numbers and will give you a better idea of what you can afford and more
importantly what you cannot afford.
3. A few years ago the market was rife with people who were gung-ho
about selling their home on their own. For many people, the idea of
selling their home on their own meant being able to save the commission.
If you already own a home that you will be selling in order to fund the
purchase of your next home, it is critical that you understand that now
is not the right market to try to go it alone. Yes, you might save the
commission, but your home might also sit on the market for a year or
longer. There is far more inventory on the current market than there was
even two years ago and it is much more difficult to sell a home today.
Save yourself the hassle, trouble and time and hire a professional who
can help you to get the attention you need to sell your home.
4. Make sure you are aware of the current interest rates. At the current
time, any interest rate that is between 6 and 7 is a good number. If you
can get an interest rate in that range, grab it and run and be happy for
5. You should also understand that there really is a big difference
between working with a mortgage professional. While there are any number
of people out there right now hustling trying to help find loans for
buyers, when you are making an important financial decision such as
buying a home you will need to make sure that you are working with
someone you can trust. It really can make a big difference in the long
6. You also need to give some thought to how long you plan to be in your
next home before you actually commit to buying it. If you do not plan on
staying in a home for at least the next five to seven years then you
need to seriously think about waiting to buy. In the event that the
market continues to drop somewhat over the next year and you buy a home
today, you could be set to experience a depreciation in the value of the
home you buy. That is not necessarily a problem unless you plan to sell
it in the next couple of years. If you are in it for the long haul,
overall, it will not make that much difference to you. If you plan to
sell in less than one or two years; however, it could be a big problem.
7. Finally, recognize that despite the dire numbers and predictions,
there really never has been a better time to buy a home; provided that
you are ready. If you are in it with a long-term commitment in mind and
you are financially ready, there are some great deals available. Over
the course of time you will likely find that you will be glad you made
the decision to purchase.