Cathy Lomasney's Blog
The cost of buying a house extends beyond a seller's initial asking price. In fact, there are many "hidden" costs that buyers need to consider as they decide whether to purchase a house, such as:
1. Closing Costs
There are various closing costs that a buyer may encounter before he or she finalizes a house purchase, including survey, appraisal and wire transfer fees. As such, it generally is a good idea to prepare for these costs prior to launching a house search. Because if you prepare for closing costs, you can ensure that you have the finances available to cover these expenses when you are ready to complete a house purchase.
Oftentimes, it helps to meet with banks and credit unions prior to starting a home search. These financial institutions can help you get pre-approved for a mortgage and teach you about home closing costs. Best of all, after you get a mortgage, you can start your home search with the financing you need to secure your ideal residence.
2. Property Taxes
Property taxes usually are assessed twice a year, and they vary based on state and county. However, if you learn about property taxes, you can map out your homebuying budget accordingly.
Real estate property tax information is part of the public record. Thus, you can access information about property taxes related to a particular home before you purchase it. And once you have this information at your disposal, you can use it to determine whether to move forward with a house purchase or continue your search for your dream home.
Utility bills vary based on the size of a home, its location and other factors. If you devote time and resources to estimate your utility expenses, you may be better equipped than ever before to make an informed home purchase.
To assess your potential utility costs, you may want to consult with a seller's agent. This professional may be able to provide you with insights into the current homeowner's utility expenses to help you budget appropriately.
It never hurts to hire a real estate agent to help you navigate the homebuying journey, too. A real estate agent can offer expert insights into closing costs, property taxes and other homebuying fees, as well as help you quickly discover your dream residence.
Let's not forget about the comprehensive homebuying guidance that a real estate agent can provide, either. For instance, if you are unsure about whether to submit an offer to purchase a house, a real estate agent can offer recommendations and tips to help you make the best-possible decision. Or, if you have concerns or questions at any point during the homebuying journey, a real estate agent is ready to respond to them.
For those who want to buy a house, it helps to learn about all of the potential costs associated with a home purchase. If you start budgeting for a home purchase today, you could accelerate your quest to find and buy your ideal residence.
Home appraisals are an important part of the buying and selling process. Lenders use appraisals to make sure that the home is worth what the borrower is paying. A home’s appraisal value is based on a number of factors, all of which we’ll discuss in this post.
Whether you’re a buyer, seller, or are just learning about the process of buying a home so you’ll be better equipped in the future, this article is for you.
How is a home appraisal different from an inspection?
While home appraisals and inspections are performed by licensed or certified professionals, they have to different functions. An inspection ensures the safety of a home, as well as whether or not it will need repairs in the immediate or near future.
Appraisals, on the other hand, aim to value a home based on its property value, the size of the property, and the location of the property. The condition of the home is a factor in valuing a home, which is why some people confused appraisals with inspections.
Who pays for appraisals?
Like most closing costs, a home appraisal is a burden that falls on the buyer. Typically, the lender you choose will work with will actually order the appraisal. The cost, which usually amounts to a few hundred dollars, can be added to your closing fees. You can find the cost for an appraisal listed on the Closing Disclosure document provided by your chosen lender.
Which factors determine the home’s value?
To appraise the house itself, appraisers will look at the condition of the home. They’ll also weigh the features of the home in their valuation--things like the number of bedrooms and bathrooms, for example.
However, the two key characteristics of a home that contribute to its value are its age and size.
Which external factors contribute to the home’s value?
As you might suspect, the location of your home matters greatly when it comes to appraisals. Homes are appraised based off of average prices for their neighborhood and region.
Other location factors include how accessible the home is, if it’s located on a waterfront, and whether it has desirable views.
When does a home get appraised?
While your experience may vary based on your specific circumstances, most appraisals occur after a buyer has signed a purchase contract. One this is done, the lender will take the steps necessary to order and process the appraisal.
How long is the home appraisal process?
Once the buyer has signed a purchase contract, the appraisal is usually completed and processed within 7 days. The appraisal report will be sent to the lender. This report contains the appraised value of the home. Buyers are entitled to a copy of this report, and should keep one for their own records.
Buying a house should be a worry-free experience. Yet problems may come up that prevent a property buyer from achieving the optimal results. Lucky for you, we're here to help you quickly identify and address various homebuying hurdles.
Now, let's take a look at three tips to help you minimize stress as you navigate the homebuying journey.
1. Plan for the Best- and Worst-Case Scenarios
An informed homebuyer should have no trouble enjoying a worry-free property buying experience. In fact, this buyer will understand the best- and worst-case scenarios and know exactly what to do – even in a stressful homebuying situation.
In the best-case scenario, a homebuyer will instantly find his or her dream house, submit an offer to purchase this residence and receive an immediate "Yes" from a seller. Then, this buyer can finalize a home purchase and move into his or her new residence.
On the other hand, the worst-case scenario likely will force a homebuyer to miss out on the opportunity to acquire his or her ideal residence. This scenario may involve a failure to agree to terms with a seller due to many potential homebuying problems.
Homebuyers will want to do everything they can to avoid the worst-case scenario. Fortunately, if you learn about the housing market, you can gain the insights you need to plan ahead for the property buying journey. And as a result, you can increase the likelihood of finding and buying your dream house in no time at all.
2. Get a Mortgage
Let's face it – purchasing a home is your dream, but you probably don't have the necessary finances to buy a house on your own. Therefore, you may need to get home financing before you can make your homeownership dream come true.
Applying for a mortgage may seem stressful, but lenders are happy to help you in any way they can. If you consult with multiple banks and credit unions, you can review a variety of home financing options.
Don't hesitate to ask questions as you complete a mortgage application too. If you address your mortgage concerns and questions with a home financing professional, you can alleviate the stress commonly associated with applying for a mortgage.
3. Work with a Real Estate Agent
A real estate agent is a homebuying expert who can respond to any concerns or questions that you may have. If you collaborate with a real estate agent, you can get the help you need to minimize stress at each stage of the property buying journey.
Typically, a real estate agent will learn about you and your homebuying goals and help you plan accordingly. He or she will keep you up to date about available houses in your preferred cities and towns and set up home showings. And if you find a house that you want to purchase, a real estate agent will help you submit a competitive property buying proposal.
Remove stress from the homebuying journey – use the aforementioned tips, and you can reap the benefits of a worry-free homebuying experience.
One of the perks of moving out of an apartment into a home is having your very own outdoor space. Depending on how close to the city you live, you may not get much of a yard with your home. If you’re looking for that perfect outdoor space to dwell in, read on for some tips on buying a house with a yard. If you check the yard out, you could save yourself from facing problems further down the road.
Are The Trees In Good Condition?
While mature trees in a yard are a sure fire way to have privacy and shade, the trees must be safe. You want any trees in your yard to be healthy. Otherwise, during a storm, you may have an issue with falling trees. If you have a lot of trees in your yard, it may be a good idea to hire an arborist who can tell you if the trees are safe. Tree removal can be costly, so you’ll need to plan for this expense if your yard has many trees.
How Safe The Outdoor Living Areas?
You should check out any outdoor living areas the yard has. If the home comes with a patio, or gazebo the soundness of the structures should be checked. Any cement should be free of cracks or crumble.
The Layout Of The Lot
There is more to a yard than the size of a property. You should keep in mind where the home is situated on the lot. Is the front yard more prominent than the backyard? Is the home on a slope? Is there a chance water will pool near the foundation of the house? All of these questions are important for the long-term health of the property.
How Much Yard Are You Willing To Care For?
You need to know how large of a yard you’re actually willing to care for. For many buyers, a small yard is just enough. Other buyers aim to care for a large lawn the many flowerbeds. The larger the yard, the more possibilities you have. If you are willing to take the extra time and incur the additional expense that a large yard will cost, it could be a good feature to look for. Yard size may also narrow down your home search considerably.
Buying a home with a yard can be a great decision, all you need is to understand your own preferences and ability to care for properties of different sizes.
Looking to buy a house in the next few months? Ultimately, a cautious approach to purchasing a residence may prove to be ideal, and perhaps it is easy to understand why.
There are many reasons to err on the side of caution as you search for your dream house, including:
1. You don't want to pay too much for a house.
Although acquiring your dream house may seem priceless, it is important to remember that the costs to purchase a residence can add up quickly. As such, if you're not careful, you risk overspending on a house.
Lucky for you, there are many simple ways to avoid the temptation to bid too much on a residence.
First, analyze the housing market closely and search for patterns and trends. If you discover an abundance of houses is available, you may be operating in a "buyer's" market. As a result, you may be better equipped than ever before to acquire a top-notch residence at a budget-friendly price.
Don't forget to get pre-approved for a mortgage prior to starting your home search too. That way, you can enter the housing market with a mortgage – and budget – in hand.
2. You want to find a house that you can enjoy for years to come.
A home is one of the biggest purchases that an individual will make in his or her lifetime. Thus, it is important to allocate the necessary time and resources to assess a house before you submit an offer on it.
Of course, a home showing is a must prior to the submission of a home offer. A home showing allows you to walk around a residence and envision what life might be like if you purchase this home.
After you submit an offer on a house, you'll likely have the opportunity to complete a property inspection before you finalize your home sale. This inspection is important, as it enables you to learn about any "hidden" problems that may have gone unnoticed during an initial home showing.
If you feel comfortable with a residence after an inspection, you can move forward with a home sale. Or, if you aren't comfortable with a house at this point, you can always submit a counter-proposal or remove your offer entirely.
3. You want your home to retain its long-term value.
Let's face it – buying a home is a tough decision. And if you need extra help determining whether a home purchase is a viable long-term decision, it may be a good idea to consult with a real estate agent.
Typically, a real estate agent can respond to any of your homebuying concerns and questions, at any time. He or she is happy to help you explore high-quality houses, and by doing so, will enable you to take the guesswork out of discovering a residence that will retain its value.
Err on the side of caution as you proceed along the homebuying journey, and you should have no trouble purchasing a residence that matches or surpasses your expectations.