Buying a new home or land to build on can be a rather daunting task. So many things to consider: location, affordability, functionality, aesthetics, and more. It is a process that should be carefully thought out and planned and with a knowledgeable professional.
So many times as a Realtor I get a call saying, “I want to go see that house and make an offer.” That is music to my ears, of course, but it isn’t really that simple. I always hesitate when I get this type of call because there is so much to consider prior to doing so.
Yes, with a knowledgeable professional it can be easier, but there are a few things you should know before you do so.
- Pre-approval with a qualified lender- This is really important for a number of reasons. Knowing what price range you can both afford and qualify for will dictate what you can or can’t buy. That house you love might be more than you can afford or maybe you’re settling for less than what you qualify for.
Just as important as the price range is, the loan type and knowing how much money you will need for a down payment and closing costs are just as important. Submitting an offer with a Pre-approval letter has a lot of bearing on a seller’s decision to accept your offer. This makes the process easier and gives the seller assurance that entering into a contract with you has a high probability of reaching the closing table. - Making a list of the “must-haves” and “would likes” makes finding the perfect home more efficient. Know what you can live with and what you can’t live without. For example, 3 bedrooms is a must or 2 car garage would be nice but a single car would be okay.
Don’t forget things that are often overlooked like, the bathroom must have a tub, sufficient cabinet space, pantry size, sizable closets, and convenience, etc. Knowing these things can help pinpoint the perfect home and save you time and money looking at homes that are not a good fit. - Getting into a Homeowner’s Association or Not is very important to consider because with a Homeowner’s Association comes deed restrictions, monthly fees and do’s and don’t’s. Some people love them and some people want nothing to do with them. It is a personal preference, regardless it is something that has a lot of weight on your decision.
For example; you may have pets and desire a fenced-in yard, but some associations don’t allow fences. Boats, Rv’s and company vehicles are big factors in choosing whether the Homeowner’s Association is a good fit. Let’s not forget the monthly dues. Knowing the deed restrictions and monthly fees before writing an offer is a must. - Utilities that are available can also play a big factor. Some rural areas are limited with services available such as high-speed internet, cell service, cable TV and public water. It’s good to know which utility companies service the address and if your desired needs are being met. It can be quite costly and inconvenient to change cellphone carriers. I have seen a large increase of people who work from home and things like high-speed internet and cell phone service are crucial.
- Property taxes vary and are another factor that should be considered. Generally speaking, City municipalities tend to have higher property taxes. It’s important to know how much they are because property taxes affect your monthly payment and must be factored into your budget.
- Homeowner’s insurance is another cost that will need to be factored in and will also affect the monthly payment. Here are a few things that affect the insurability of a home and the premium. Age and condition of the roof, location, flood elevations, previous sinkholes or environmental conditions, pools, trampolines, large dogs and security systems.
Once you have these few things in place and know exactly what you want, the process will be less daunting, and you can enjoy an exciting experience. Having an experienced Realtor guiding you through the process will help you tremendously and will assure that your purchasing process is a memorable one.
Renters, don’t sell yourself short. So often I find people looking for rental properties who think they are not qualified to buy or that they don’t have enough money saved for a down payment or closing costs.
There are several programs and loans now available that make home buying affordable. You just might just be surprised.
Countless times I have found renters a home buying program that gets them into ownership for less or about the same as first month’s rent, last and security deposits, with monthly payments less than rent. Discussing your situation with a knowledgable Realtor to discover your options may be a game-changer!
Happy Home Buying!
Disclaimer: I am a licensed Florida Realtor with Sellstate Next Generation Realty Ocala, FL.
