Friday, March 17, 2017 / by Jason Huerkamp
We get asked many questions by buyers when they are considering buying a home. There are a few that come to mind that are really important. Lets take a look at those important questions.
How Much Home Can I Afford
There is a good chance that when you get pre-approved / pre-qualified for a home your lender will have spoken to you about the amount of the loan and what payment you will have to pay each month. Before you buy, make a list of all the things that you will need to pay over and above your mortgage payment. Here are a few items you may need to consider to add in to your monthly budget
- HOA fees
- Garden Maintenance
- House maintenance
- Property Taxes
These costs are house related, but remember you have to live too and that doesn't include your other living expenses. Buying a home and living your dream can feel daunting if you forget the lifestyle you work for and deserve. So know your figures before you buy.
How Many Homes Should I look at?
In todays hot market, you may not get to see too many homes before you make an offer. Honestly, sometimes the first home you see is the right one. If you find a home you love, make that offer straight away. Homes are in high demand in this Sellers market today and your offer may not be the only one the Seller is considering.
With access to homes on line you can view many and choose the few you want to see. That cuts the search down and the decision making is often an easier process.
How Much Will The Seller Accept?
This is a difficult question. The Seller may consider a lesser offer if the conditions in the contract are pristine. The biggest hurdle is that the Seller, if he prices his home well, will inevitably attract more than one offer in today's market. He may not need to consider a lesser offer at all. Your buyers agent will show you a comparable marketing analysis on your property choice to help you decide what offer you should put in. The offer acceptance will depend completely on the market conditions at the time. Be guided by your real estate agent and if you really want the home and the home is priced well, then pay the price.
If a home you are considering has been on the market for a while, there may be an opportunity to make a lesser offer. Once again, look at the comparable properties your real estate agent finds for you as a comparable and then make a calculated decision about the amount you offer on the home.
Is This a Good Deal?
That is a challenging question. If you are buying a home to live in and its the right home for you and your loved ones, then its a good deal. Everyone wants a bargain and if you are looking for a bargain, you may have to wait for a slow down in the market which could be at the turn of the season when the "left over" homes from the season are still on the market. Those Sellers may be willing to accept a lesser offer at that time. You really have to weigh up your options and see if you can really afford to take the chance and wait.
If you are purchasing for short term gain, then its a whole other ball game. That is a specific kind of client looking for that opportunity and that would be worth an in depth conversation and strategy to find that particular kind of home. Those opportunities are few and far between and chances are, those kind of homes generally needing remodellng.
How Long Until We Can Close?
That too is often circumstantial. Most homes can close in 30 - 45 days. If everything happens as it should and there are few challenges, you can get a clean sale closed in a short time, but most times it does lean towards the 45 day mark. That too can be discussed with your Buyers Agent ahead of time if you have a specific need, bring it to their attention right away and all parties will work to make the transaction as smooth as possible.
What Happens If I Need To Get Out of This Contract?
Each state is different in this matter and the best you can do is check with your real estate agent or an attorney. There may be penalties involved if the conditions have been met. An attorney can read through an agreement with you and discuss your options. This is a big purchase and rather go into the sale with confidence, backed by a team of professionals who are there to look after your best interests. You may want to read our article on Are You Protected By the Contingencies in Your Contract