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If you’re looking to buy a home, you’re in luck because buying conditions couldn’t get much better. This is definitely a buyer’s market, and if you have your financing in order, you are in a position to get more house for your money than at any other time in history. And, if you’re a first time home owner, or haven’t had your own home for at least three years, you probably qualify for the government’s $8,000 tax credit as long as you buy before April 30, 2010.
With the tax credit, builder incentives, and low interest rates, who wouldn’t want to purchase a home right now? Well, even if you’re thinking about purchasing a home, there are a few things you need to think about while you are out looking for the right one for you.
For instance, say that you are in the position to buy what was formerly a home priced at $350,000 for around $175,000. That sounds crazy, but there are places where that’s happening. That is a steal at any level, and if you snatched that house up, who would blame you. These deals won’t last forever, and even if you lock in your mortgage at a nice low interest rate, you’ll still have to deal with property taxes; getting the best price is essential. Those are based on the assessed value of your home, and it is quite possible that within 5 years or so the assessed value of your home could jump back to that $550,000 level. So, you would now be assuming a house at a low mortgage with quite the punitive property tax. You might be able to swing it, but be prepared for it.
Second, a pricier house means pricier maintenance and utility costs. Many large houses have lots of open spaces, and in winter, especially in cold climates, you have to heat all of that. Even if the house was insulated well, the price of your monthly utilities might shock you. The larger the house, the greater chance there will be something break and you will have to address those things sooner or later. If you’re handy, no problem; if you’re not, you might have to save some money for a few months to take care of some issues.
If you purchase a foreclosed home you’re considered lucky if the the family that was forced to leave didn’t trash the place on their way out. This will mean you should be getting a house that is pretty safe and secure. However, if they did trash the house, add at least $35,000 in your mind to whatever someone offers you the house for, because that’s probably the minimum you’ll need to make any repairs to floors or replace any that was stolen. That’s the minimum; remember, you’re possibly buying a luxury home, so these repairs or replacements could run you as high as $100,000 to get it all corrected. However, if you’re careful and smart, you could end up with the house of your dreams.
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Great points to remember. Some buyers only focus on the purchase price, but you have to consider all the associated costs of the home before making a decision. Also, some communities require a monthly association fee. Buyers should consider whether they will be able to meet this yearly obligation.
.-= Bruce Dietz´s last blog ..Fantastic townhome in great West Augusta location =-.
You are absolutly right Bruce. By the way I am still waiting on your information for the link in our Housing Directory.
Agree with you 100%. Now is great time to buy new property in Spain. There is a huge range of properties to choose from. Most areas on the Costas have a supply of key ready projects that have never been lived in. The community charges are definitely worth checking out. Many developers will offer discounts to get them off their books, though we feel they are not as generous at the moment as they could be!
I agree with Bruce. Buyers need to remember there is more than just purchase price. The smaller costs can add up quickly.
.-= Matt@New Homes Atlanta´s last blog ..Details on New Tax Credit Extension =-.
Utility prices are often the biggest expense my clients tend to over look. On an older home of 2500sq ft or more they could spend over $400 a month just on electric during a central Texas summer. This is usually something I make sure every new home buyer is aware of ahead of time.
Another point to consider is how much will it cost to get the home to your liking. How much will new carpet cost, new paint job, landscaping?
It can a very good deal to buy a foreclosed home if you can or have a friend who can help you to really control the house. The normal is that the owner has not take care or done any reparations on the house the last years so it can cost you a lot of money to repair everything.
This definitely is a buyers market and they should be educated on the benefits of investing in a house. Apart from the purchase price, buyers are very keen on the utility prices and the overall operating expenses they have to shell out.
.-= Tulsa Real Estate´s last blog ..Feng Shui Tips for buying a home =-.
It is also extremely important if buying a foreclosed new home to investigate the health of the HOA and amenities. Sometimes that “great” purchase ends up not being at all what you thought. . .Do your research so your aren’t caught off guard.
.-= Carol Flammer´s last blog ..Glen Lake Apartments is a Popular Venue for Local Meet-Ups =-.
You are absolutely right. The hidden costs while buying your house or constructing it build up so much. But most people often don’t realize until they are caught off-guard and then leave their work unfinished. So, research is the key here…
.-= Lydia @ glueless laminate flooring´s last blog ..About Us =-.
Great home buying tips. Yes, the credit crunch is making it tougher on prospective buyers, but I’m seeing sales warm up here in Long Beach, California. Time will tell if we’re finally out of this tailspin. On another note, I like the sense of community I’m finding here. This is definitely one for my bookmarks.
BTW, vist my WordPress blog for my business here: Long Beach Air Conditioning
.-= John´s last blog ..Choosing Long Beach Air Conditioners =-.
This is just one good examples of giving tips to home buyers. When buying a house, we must consider the hidden cost before we decide to purchase a certain property. Glad to know that this post really informs everyone. Keep it up!
.-= Orem Utah Homes´s last blog ..Previewing February’s New Home Sales: The numbers declined! =-.
There are usually substantial clean up and maintenance costs involved with purchasing a foreclosure, however that is not the situation in all foreclosures. I have seen foreclosures in all ranges. Some are nice, some are nasty. Every situation is different.
.-= Desert Mountain Scottsdale AZ´s last blog ..Living Large In Desert Mountain Scottsdale =-.
Just ran across this post and I think that was an excellent point about the tax assessment on your home could jump back up with the market turn around. I hadn’t thought about that, but something to consider when scooping up the deal of a lifetime, when all of a sudden your taxes take a dramatic climb. Good Tip!
Having dealt with my fair share of foreclosures (by helping out a friend who is a realtor), I can say that I’ve seen some homes in the most awful conditions. It sad because a perfectly beautiful house gets damaged to the point that very few home owners would want to try to fix up.
Good information. Today’s tax assessment don’t necessarily reflect today’s market conditions. Buyer Beware!!