Jim Valentine on Real Estate
So, you are ready to buy a house but are getting pulled in many directions. Big builders are offering big contributions to help you buy your rate down, i.e. – $20-25,000.
You still pay retail for the home, so they have their comps, but your interest rate is lower, so your payment is lower. Resale owners have window coverings in place along with front and back landscaping. When you add up those costs you may find those items worth a lot more than the $25,000 carrot dangling in front of you.
Some people like a new home for the comfort of having a builder’s warranty, just like buying a new car. It works for some, but not all. If you are relying on a builder’s warranty, be sure to read it for there is no such thing as a builder’s warranty unless it is in writing.
Despite common public belief to the contrary, there is no legal standard for a builder’s warranty. Understand what it is you are getting before you buy. When buying a resale home, you can buy a home warranty insurance policy that will cover the systems of the home and give you a general feeling of comfort.
When you find a home or homes that you like don’t compromise on your ideals and standards. Remember that you can adjust your situation in time as opportunities present themselves. You can get an adjustable-rate mortgage now instead of buying rates down.
As rates go down your payment will too. If you get a high rate and rates drop, you can refinance. Sure, it will cost you to do that, but not as much as paying $25,000 to buy the rate down today.
Quality always sells. If you buy a quality home now, there will always be demand for it when you are ready to sell. If you compromise with quality, features, size, location or any other component that adds to value, you also have to compromise your price when you go to sell it in the future. There are things that you can do to make it easier to sell at that time, i.e. – upgrade features, add on to the home, etc., but you can’t change the location, neighborhood, etc. Buy what you want and enjoy it. You pay more for quality, but you get more in the long run and, in the case of a home, during the course of your ownership.
Barring unforeseen circumstances, your home purchase is not short term. You will be in it for years, and things will change with the economies of the region, state, nation and world during that time. Trends will change, business will come and go, all affecting property values.
However, your pleasure derived from owning and living in the home you really wanted will always be there and satisfy you every day that you and your family live there. It is what we call the “emotional return on the investment.” Your investment isn’t always about money. In times like these it is important to remember that.
To buy in this market, be very clear about what you want in a home and in your home ownership experience. Then work to find the properties to match that list of wants/needs. When you find them be sure to look at the buying circumstance from many angles to see how it will work for and fit you now and into the future.
Keep your goals clear in your mind, think of them often, and keep working. The end win of buying the best home for you is really worth the effort. You aren’t buying for anyone but you. Everyone will have an idea of what you should do, parents, cousins, boss, co-workers, etc.
They are looking at your circumstance through their eyes and their filters. Only you know what you truly want and can do. Listen to their input, but in the end to what is best for you and your family.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com