Moving In: Top Tips for First Time Homebuyer
The influx of foreclosures in recent years has also placed many deals on the market. Even in light of great numbers of options, new homebuyers should be aware of some of the risks. There are negotiating points like selling price, closing-costs, hidden costs like homeowners insurance, and of course, taxes to consider when buying your first home.
Some other pitfalls include the cost of maintenance and upkeep, and pest control. The prospect of owning your own home is attractive for many people. Being mindful of the risks and benefits can greatly avoid the heartache of added costs for first-time homebuyers.
The selling price of your home is typically influenced by several factors. Among those factors, first and foremost is the appraisal value of the home. The appraisal value is not absolute, though. You can compare the appraised value to the selling price of similar homes in your area and use that information to leverage a better deal in many cases. Often, a depressed market will lead to homes closing at prices lower than appraised value.
Another point of discussion is that of closing costs. Part of the price of any home addresses the fees levied by realtors, brokers, lawyers, and sellers. When closing the deal, first-time homebuyers will certainly face no alternative but to pay some of these individuals, particularly the lawyers.
Nevertheless, the sellers will sometimes agree to absorb all closing costs, in effect providing a “discount” to the others on what the sale price of the home yields. Consideration is given to the fact that the seller will usually profit the most from the sale of the home.
First-time homebuyers should be privy to the fact that beyond the actual cost of monthly mortgage payments, most localities will mandate that the owner maintain homeowner’s insurance.
This type of insurance can be costly and will need to be factored into the first-time homebuyer’s monthly expenses. Especially concerning in regard to insurance is the fact that in areas of frequent devastating storms or floods are allowed to raise insurance rates regularly. This will cause modification of the household budget. Likewise, local taxes on property are a concern, and subject to a hike.
Every home, particularly if it is an older one, will require some upkeep. Expensive repairs can involve air conditioning, plumbing, and landscaping costs. The first-time homebuyer should set aside a portion of earnings for repair and maintenance. Pest control can also become costly, especially if termites present a problem.
First-time homebuyers are definitely presented with plenty of homes to choose from in most places. The first-time homebuyer just needs to bear in mind the opportunities to save. Price and closing costs are chances to save presented before moving in.
After the sale, the first-time homebuyer is challenged to keep up with monthly bills, and enjoy the home of their dreams.
Written by guest author Sharon Freeman about http://www.taylors.com.au, the best place to find great information about the Randwick Property Market.
*source of image: denver-realty-finder.com
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