Dean DeMagistris' Blog
For homebuyers who want to do everything possible to discover their dream residences, it generally is a good idea to attend open houses. These events make it simple to analyze residences and determine whether they match or surpass your expectations.
Ultimately, there are many reasons to attend an open house, and these include:
1. You can get a first-hand look at a home.
A home listing often provides a great starting point for homebuyers. However, a listing alone fails to empower buyers with the information that they need to fully analyze a house.
By attending an open house, you can get an up-close look at a residence. An open house allows you to walk around a home and view each section of a residence at your convenience. Plus, an open house usually is stress-free, and if you don't like a residence after the event, you can simply continue your search for your dream home.
2. You can receive comprehensive home insights.
During an open house, you can gain home insights that you may struggle to obtain in a home listing. Therefore, homebuyers may want to prepare a list of questions before they attend an open house to ensure they can obtain deep insights into a home's condition.
Moreover, an open house may help you determine whether there is substantial or minimal interest in a residence. If an open house is attended by dozens of potential buyers, you may need to act quickly to submit an offer to secure this residence. Comparatively, if you are the only person to attend an open house, you may be better equipped than ever before to negotiate a home's price with a seller.
3. You can envision what life might be like if you purchase a residence.
When it comes to deciding whether a home is right for you, attending an open house is paramount. In fact, an open house enables you to envision what life may be like if you purchase a residence. And if you feel comfortable with a home after you attend an open house, you can always submit an offer to help transform your homeownership dream into a reality.
If you plan to attend open houses in the foreseeable future, there is no reason to attend these events alone. Fortunately, real estate agents are available who can help you prepare for open houses and ensure you can discover your dream residence.
A real estate agent is a housing market expert who can teach you everything you need to know about buying a home. This housing market professional first will learn about your homebuying goals and craft a personalized homebuying strategy. Then, a real estate agent will keep you up to date about open houses, offer homebuying insights and do everything possible to help you find a home that you can enjoy for years to come.
Reach out to a real estate agent today. By doing so, you can start attending open houses and boost the likelihood of a successful homebuying experience.
Buying your first home is a big decision; one that involves a lengthy process of saving money, building credit, and planning the next phase of your life. However, owning a home comes with one major payoff: home equity.
Simply put, home equity is the amount of your home that you’ve paid off. However, it does get more complicated when we bring in factors like the market value of your home and how it shifts over the years.
In this article, we’ll discuss home equity and what it means for you as a homeowner. This way, you’ll have a better idea of what to expect when you finally make that last payment on your home or when you decide to sell.
Home equity and market value
As I mentioned earlier, home equity is more than just the amount you’ve paid toward your mortgage. Like most markets, the housing market shifts over time.
Most homes slowly increase in value over time. In the real estate world, this increase in value is called appreciation.
However, that doesn’t mean that your home is simply going to increase in value indefinitely until you decide to sell. As you will find out (if you haven’t yet already), owning a home can be expensive. Houses age and require upgrades. If you fail to keep up with the maintenance of your home, its value can diminish.
How to build equity
The most important thing you can do to build equity is to make on-time payments to your mortgage. Making extra mortgage payments will help you build equity even faster.
One method of paying extra on your mortgage that many people are adopting is to make bi-weekly payments. Twenty-six bi-weekly payments comes out to 13 full payments per year, the equivalent of making one full extra monthly payment.
The second method of building equity is something that you have less control over: appreciation. However, if you stick to a maintenance schedule for your home and keep it in good repair, you’ll most likely benefit from appreciation over the lifespan of your mortgage.
What can I use home equity for?
The most common way to use home equity is as a down payment or full payment on your next home. First-time buyers who don’t have a 20% down payment saved often buy a starter home and then later upgrade as their family grows and their needs change. In the years that they own their first home, they build enough equity to make a full down payment on their second home, avoiding fees like mortgage insurance.
Many homeowners planning on retiring in the near future use their equity toward their retirement home, often turning a profit in the process. If you plan on downgrading for retirement and have fully paid off your mortgage, you can often use your equity to pay for your next home in cash.
A home inspection is a valuable opportunity for a property buyer. If a homebuyer knows how to plan for an inspection, he or she should have no trouble getting the most out of this opportunity.
Now, let's take a look at three tips to help you get ready for a home inspection.
1. Hire an Expert Home Inspector
Not all home inspectors are created equal. And if you make a poor home inspector selection, you risk missing out on potential problems that may result in costly, time-intensive home repairs down the line.
When it comes to finding the right home inspector, it pays to be diligent. As such, it is crucial to allocate time and resources to conduct an extensive search for an expert house inspector. Because if you have a qualified home inspector at your side, you can get the support you need to perform an in-depth property evaluation.
Ask a home inspector for client referrals before you make your final decision. That way, you can find out what past clients have to say about a home inspector and determine if this professional is the right choice for you.
2. Attend Your Home Inspection
Although you are not required to attend your home inspection, it generally is a good idea to walk through a property with a professional inspector. By doing so, you may be able to gain insights that won't necessarily appear in your house inspection report.
You may want to take notes during your home inspection as well. If you remain diligent throughout your home inspection, you can understand a house's strengths and weaknesses. And as a result, you'll be better equipped than ever before to decide whether to move forward with a home purchase.
3. Ask Questions
There is no need to leave anything to chance, especially when you buy a house. Thus, if you have concerns or questions during a home inspection, address them immediately.
Remember, a home inspector is happy to respond to any of your property concerns or questions. He or she can provide honest, unbiased responses to your queries and help you make an informed decision about a house purchase.
As you prepare for a home inspection, you may want to consult with a real estate agent too. This housing market professional can offer recommendations and suggestions to help you get ready for a home inspection and put you in touch with the top home inspectors in your area. Plus, a real estate agent will help you review a house inspection report so you can determine whether to proceed with a home purchase.
For those who want to get the most out of a house inspection, you may want to prepare as much as possible. Thanks to the aforementioned tips, you can streamline the home inspection preparation process. Then, you can enter a home inspection with a plan in hand and use this evaluation to decide if a house will be able to serve you well both now and in the future.
Buying a home is one of the most expensive undertakings that you’ll ever have in your lifetime. You probably have spent months upon months saving for a downpayment in order to make your home purchase. The problem is that after they believe their savings are complete, many buyers discover unexpected costs that go along with buying a home, making the entire process even more stressful. You should be prepared for many different kinds of costs that go beyond the sticker price of a home. Below, many of those surprising costs are laid out in detail.
Closing costs can be anywhere from 2-7% of the purchase price of a home. Closing costs cover quite a bit including:
- Inspection fees
- Title insurance
- Property taxes
- Mortgage insurance
- Underwriting fees
- Recording fees
- Loan origination fees
Depending upon the type of loan you get or your specific circumstances, your closing costs could be even more. Keep in mind that you won’t find out your specific closing cost amounts until the purchase of the home is well underway. You can talk to your realtor and lender ahead of time to be prepared for your own situation.
Closing costs are also negotiable, so don’t forget to ask questions. Certain administrative fees, for example, are often unnecessary and can be waived.
If you have a low appraisal on your home, you may need even more cash on hand. In order to meet loan and home value requirements, lenders won’t approve a loan for an amount that’s higher than the home is appraised for. In this case, if you still want the home, you’ll be left to come up with the difference in cash. Otherwise, you could be forced to walk away from the deal and lose some money in the process. This is one of those home purchase emergencies that you should simply be aware of. It can be an emotional experience to get a low appraisal on a home, but remember that there are sensible ways to deal with this dilemma.
Many buyers forget in the excitement of buying a home just how much it will cost to move. Whether you hire a moving company or do it yourself, moving can be expensive. You’ll need a truck, packing supplies and a way to pay (or simply thank) the people who help you to move.
The Things You Need For Your Home
Your home won’t come with everything that you need. You may have to buy a refrigerator, have some repairs done, or simply get furnishings for the home. Don’t strap your budget so thin that you won’t be able to buy a sofa until six months after moving into the home.
If you recently submitted an offer on a house and received a "Yes" from the seller, you likely will need to schedule a home inspection in the next few days or weeks. Ultimately, an inspection can make or break a house sale, so you'll want to plan for this evaluation accordingly.
Fortunately, there are several steps that a homebuyer can follow to plan for an inspection, and these are:
1. Find an Expert Home Inspector
All home inspectors are not created equal. And if you make a poor selection, you risk missing out on potential home problems that could prove to be costly and time-intensive down the line.
Before you schedule a home inspection, evaluate the home inspectors in your area. That way, you can find an expert home inspector who will go above and beyond the call of duty to assess a residence.
Reach out to a variety of home inspectors and ask for client referrals. Then, you can contact home inspectors' past clients to better understand whether a home inspector can match or exceed your expectations.
Furthermore, a real estate agent can help you find a qualified home inspector. In addition to helping you buy a home, this housing market professional can put you in touch with top-rated home inspectors in your city or town.
2. Make a Home Inspection Checklist
When it comes to preparing for a home inspection, it usually pays to be diligent. Thus, you'll want to put together a checklist beforehand to ensure that you know exactly which areas of a house that you want to examine.
A home inspection checklist may emphasize looking at a house's roof, heating and cooling system and much more. Also, it may be worthwhile to include questions to ask a home inspector in your checklist. This will ensure that you can receive comprehensive support from a home inspector throughout your house evaluation.
3. Consider the Best- and Worst-Case Home Inspection Scenarios
Although you'd like to believe that a home that you want to buy is in perfect or near-perfect condition, an inspection may reveal a wide range of problems. However, if you prepare for the best- and worst-case home inspection situations, you can increase the likelihood of staying calm, cool and collected in even the most stressful post-home inspection scenario.
If a home inspection reveals that there are no major issues with a house, you're likely good to go with your home purchase. Next, a home appraisal may need to be completed, and you'll be on your way to finalizing your transaction.
Conversely, if various problems are discovered during a home inspection, you may need to reconsider your home purchase. In this scenario, you may want to ask a seller to perform home repairs or request a price reduction. Or, you can always walk away from a home purchase as well.
If you need extra help preparing for a home inspection, you can always reach out to a real estate agent too. In fact, with a real estate agent at your side, you can get the assistance that you need to conduct a successful home inspection.