Searching for the right home can bring out stress and indecision in all of us. You found the home you love, but it’s a little more than you were hoping to spend. The location is perfect, but you’re not sure about the pink and green bedrooms. So how do you know if you’re ready to make an offer? Answer the following questions to give you more certainty.
Does it fit my budget?
With the increased cost of housing over the past decade, it doesn’t take much for one to become “house poor”. If you haven’t heard of the term before, it’s when people spend a large portion of their income on their home, and have only a small portion left to live on. Sure, they may be able to budget their bills and groceries, but if major expenses haven’t been accounted for, credit becomes the most viable resource.
So how do you know if it’s a manageable payment for you? Early in your research, determine what price point you’d like to spend. Visit a mortgage specialists’ or lender’s website to work out your average monthly payment based on the posted 5 year rates. Then, practice your new payments. Whatever is in excess to what you’re currently paying simply set that amount into a separate account. You’ll likely find these savings to be extra helpful to cover the cost of a property inspection and/or legal fees later. If the additional expense is easily manageable, then you’re probably ready to write an offer within that price range.
Is the property listed for more than it’s worth?
We’ve seen many people over the years owe more on their home than it’s currently worth. This is quite devastating as it leaves a homeowner without options if they want to move. Hire a professional realtor whom you can trust, and who will show you comparable properties to ensure the property is listed for market value. If it’s a fair asking price and you feel it’s the right home, then it makes sense to make an offer.
How is the location?
We’ve said it before that the one thing you cannot change about a property is the location. Ask yourself the following questions: How is our commute to work, school, shopping etc? Is the neighborhood safe and a good fit for my family? How are the neighbors? If you feel good about these answers then it’ll likely a good location for you to consider.
How much work is needed?
Before starting your property search it’s a good idea to determine how much time and money you’re willing to put into a property. Many couples admit that major renovation projects nearly ruined their marriage. It’s inconvenient and often difficult to live through home improvements. Before making an offer, carefully assess the property’s condition, and estimate how much time and money you’re willing to invest. Give yourself at least an extra 15% margin for unexpected costs to show up.
What’s your gut telling you?
Can you envision yourself in the home? Are you excited about the possibility ahead? Does it feel right? Trust these instincts. If it feels like it’s the right home, then it likely is. If you’re going back and forth, feeling uncertain, then you may want to take a little more time to think it through before making an offer.
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate, LIKE our Jason Rustand Team Facebook page, call us direct at 780-980-2828, email firstname.lastname@example.org or visit WeSellLeduc.com