Market Place Real Estate - Home Buyer's Tools

10 reasons to buy a home Many people – especially singles and young couples who are just starting their careers – have mixed feelings about purchasing a house. They worry about getting tied down and taking on a lot of debt.

Here are 10 compelling reasons why anybody who can afford it should consider buying a home:

1) House prices tend to rise over time, so a house is one of the best investments you can make. Home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.

2) You’ll pay less tax. You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it and how long you’ve held the mortgage. As a rule, the newer the mortgage, the greater the amount of interest you pay each month and the bigger the tax break. Therefore, recent buyers with young mortgages tend to get the greatest benefit.

3) You’ll be buying a piece of real property rather than putting money in a landlord’s pocket each month. The real cost of renting is higher than the monthly payment. There is also an opportunity cost equal to the amount you would gain by using the money to purchase a home instead. Even if the house you purchased did not appreciate in price, you would be able to sell it and recoup some of the money you put into it.

4) Interest rates are still historically low. This makes it relatively inexpensive to take out a mortgage. The lower the interest rate, the less you actually pay for your house and the sooner you can pay the mortgage off. Our loan calculator can show you how different interest rates affect the total cost of your mortgage and the time it takes to retire it.

5) You’ll be able to use the equity in your home for low-cost loans for other purposes. You can access the paid-up equity you accumulate in your home in the form of a home equity loan or a home equity line of credit. Because they are secured, home equity loans and lines of credit generally carry a lower interest rate than other types of consumer loans, such as auto loans. The interest on them is generally tax-deductible, as well.

6) You’ll have the stability and emotional security of owning your own home. No more worrying about dictatorial or negligent landlords, rent increases or the possibility your building will be sold and redeveloped or turned into a condo. You’ll be able to live in your house as long as you like, fix your monthly payments for as long as 30 years and you’ll be in charge.

7) You’ll be able to redecorate and renovate any way you like, any time you like. Rules about the paint colors you can use will be a thing of the past. And you’ll be able to tear out walls, install a powder room and make any other improvements you want. Best of all, if you decide to sell, you’ll recoup at least part of the cost of the improvements.

8) You can have a garden. This is one of the big pluses of ownership – a little piece of land you can call your own, where you can grow tomatoes or roses, barbeque, and play with your kids and pets.

9) You’ll be able to put down roots in a community. When you’re a homeowner, you’ll get to know your neighbors, participate in street sales, meet potential baby-sitters and play Saturday-morning touch football in the park. Renters tend to live more insular lives.

10) You’ll have a greater voice in community affairs. Local homeowners generally have more clout – individually and through ratepayer’s associations – when it comes to development proposals, school issues, changes to traffic control and routing and the like. Because renters tend to be more transient than homeowners, they have less influence on policymakers.

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Step 1: Make the Decision to buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2: Seek Professional Guidance
We'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.

Choosing an Agent
The Agent You Decide to Work With Should be Internet Savvy have an excellent website that is easy to navigate and has plenty of free consumer information. It should be tied to a newsletter and other real estate related information that you can access without paying a dime.

VIP Buyer Profile Program - house hunting service of daily or weekly emails to you of the homes that fit your criteria. Meet with your agent describe your wants and needs enter that information into the computer along with general area or location. You should receive emails updates to all new listing that match your entries.

Someone You Trust - you must feel comfortable with your agent trust what they say know that they are working for you. Have them draw up a buyer agency agreement where they are contractually responsible to you and not working for the seller. Your buyer agent can give you the insider information that you need to make an informed decision on your purchase.

Willingness to Work on Your Terms - are you interested in working with someone who doesn?t have the time to devout to you or your little house? Someone who is so full of themselves, that they can't see your needs or is more intent on impressing you than helping you. An agent who will prepare a CMA on the homes you are considering before letting you make an offer will research tax and ownership purchase records to show the value.

Performance Guarantees - your agent should back up all claims and promises with written contractual performance guarantees. Promises to save you money an example would be. Performance Guarantee "Save you $5,000 on your purchase or pay you $1,000 at closing." Your agents should always backup what they say in writing.

Your Real Estate agent doesn't necessarily need to be your best friend but must be the professional to help guide you through the purchase and sale process. You may be working together for 2 to 4 months so pick someone you like to be around.

Step 3: Get Pre-Approved
There are actually two home buying steps rolled into one here, but there so closely related I've listed them together. Our next step to buying a home will be choosing a mortgage lender and getting pre-approved. Pre-approval will help you immensely during the home buying process. For one thing, it will show sellers that you are serious about buying their home (and financially capable). This can make a big difference in whether or not they accept your offer.

Get Pre-Approved NOW!!

Step 4: House Hunting
Let's review our home buying steps up to this point. You've got your finances in order, been pre-approved for a certain type of mortgage, found a good agent, and narrowed your search to a few select neighborhoods. Excellent! You're ready for one of the most exciting steps to buying a home -- the house hunting process. Here are some tips to help make your experience a good one.

The home buying process can be an emotional roller coaster, especially if it's your first time. This is especially true for the actual house hunting process when emotions run high.
House Hunting Tips
House Hunting Tip #1 - Bring a Friend Along Do you have a friend or family member with strong opinions on everything? You know the one. Well, bring them along during your house hunting trips! This gives you an objective ally who can help you identify the pros and cons of each house. Chances are, they'll also be able to spot aspects of a house you might have missed otherwise.

House Hunting Tip #2 - Take Pictures of Each Home
Take pictures of every house you visit, and then categorize them in folders by house address. This will help you recall the details of each house later on (when the details tend to blur together).
br> Tip #3 - Compare the House to Your Budget
Have you heard the expression "house poor"? House poor is what happens when people spend too much money and take on more of a mortgage loan than they can comfortably afford. Think of it this way. If you have to work longer hours and scrape by each month just to afford a house ... is it really worth it? Keep your finances in mind, no matter how beautiful a house may be.

House Hunting Tip #4 - Consider the Commute
So you've found a home you like, and it's well within your price range. The next thing to consider is the location. How far is the home from work? Does it have easy access to the major roadways you need? How long is your daily commute going to be?
Its easy to be so enamored with a home that you forget about the drive time. But if you commute every day, drive time is a quality-of-life issue you can't afford to dismiss. Try driving to or from the house during rush hour. That will give you a good idea of what you'll face every day.

Tip #5 - Avoid Snap Decisions
Buying a home will probably be the biggest financial decision of your life. So it deserves careful consideration each step of the way. Even in a hot market where homes sell quickly, you have to make wise decisions based on research.
Remember, there will always be another house to come along. So even if you miss one due to your cautious approach, another home will be right around the corner. Keep these tips in mind while house hunting and you will have a much better experience.

Step 5: Know The Market
Our knowledge of the local market is an essential factor in the house search. We'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration. As we tour houses, we'll let you know when the asking price has negotiating room and when the house is "priced to sell". Our unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.

Step 6: Making An Offer

We're confident we'll find your dream house. When we do, we'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 45 days from the offer date (generally dependent on the turn around time of your mortgage financing).

Step 7: Negotiate The Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 8: Get A Loan

During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. We'll gather the necessary property information your lender will need to close the loan.

Step 9: Close The Deal

You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. We will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates we believe to be low.

Step 10: Move In

Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.

Top 10 Reasons Why You Should Buy a House

Step 1: Make the Decision to

Step 2: Seek Professional Guidance

Step 3: Get Pre-Approved

Step 4: House Hunting

Step 5: Know The Market

Step 6: Making An Offer

Step 7: Negotiate The Deal

Step 8: Get A Loan

Step 9: Close The Deal

Step 10: Move In

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