Don’t just focus on the sales price!
As a home buyer, it’s easy to primarily focus on a home’s sale price. Yet it’s important to make sure you consider other factors such as your own credit. When you pay off outstanding loans and reduce debt before beginning the process of looking for a new home, you can significantly impact the interest rate you will pay and whether you qualify for a loan.
Mortgages themselves commonly involve additional costs you may forget to account for, such as mortgage insurance. Other notable expenses include the property size, location, and condition of the home. These are some of the factors which determine property taxes and maintenance expenses for the upkeep of your home. While a home in good condition may have few repair costs at first, any home is a sufficiently large and complex structure and repairs are inevitable.
Focusing too much on the sale price of a home can also lead you to make an unwise decision based on your personal needs. You may become so focused on jumping on a good deal that you overlook whether a home is right for you. If you have a growing family, consider the need for more space in the near future. In contrast, be aware that a large home for a good price may be larger than you can reasonably use.
You may want to have your real estate agent show you homes within your specified price range without telling you each individual property’s list price. This can help you make an unbiased assessment of the home and help you avoid a hasty decision for or against a property simply because of price.
When it comes time to negotiate and close a deal, keep in mind the closing costs and the cost of moving into a new home. These additional expenses might include renting a van, hiring movers, buying new furniture, replacing old items, and limited repairs to rooms like the kitchen or bathroom.
If you are looking to purchase a new home and have questions about additional costs that might come up in the process, send us a message! Our team of agents is happy to connect with you and map out any potential expenses.