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Tips and Thoughts on Buying a New Home –
The Sampson County Version
We are beginning the second half of what was just recently the beginning of a new year! The national news has given us little reason to be optimistic about the housing market focusing a great deal of effort on the foreclosure market, inflated home prices, the realignment of the lending industry and more. Now, we have stepped into another level of turmoil by the collapse of California-based Indymac Bank. The FBI fraud investigation is ongoing to determine whether false information was given, including bad appraisals and bad underwriting – and all these combine to create the second-largest bank failure in US history.
How does this translate to our local market? Sampson County housing market, for the most part, is still steady and strong. With the media frenzy of overpriced homes, we must remember that these reports are more specific to vacation areas including California and Florida. Excellent values are available across our local market – we have enjoyed a relatively steady appreciation and our home prices are well below surrounding areas of the beach communities and Raleigh – Triangle market. Loan programs have been restructured and potential buyers may be required to have a higher down payment. It is critical for buyers to be aware of the consequences their credit scores and work history.
Although our market has slowed a bit, we are experiencing a tremendous amount of activity. Inventory is high and rates are low. Now is the best time to begin! Speak with a lender, get finances in order, do whatever credit repair that may be necessary and contact a REALTOR® to begin your search for a home. An experienced REALTOR® can guide you through the process and be ready to help in many ways – from choosing a lender, locating a home and helping you throughout the closing process.
These tips, modified from the National Association of REALTORS®, are provided to help in your search of a new home. Happy Hunting!
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that uch difference in price, and a good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.
4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
Provided by
Ann E. Naylor
Naylor Realty
Published In August edition Showcase of Homes
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