We have all looked for the perfect house at some point.
Buyers are often caught up in the excitement.
It could be said they act more with their heart than their head.
When common issues are overlooked, the result could be a loss of thousands of dollars.
Real Estate Agents can give you very worthwhile advice during your house hunt.
This graph demonstrates the hidden and maintenance costs a homeowner is likely to incur.
These costs are likely to occur over the course of a year.
As indicated by the graph, these costs vary over different locations.
Not Considering All of the Expenses of Home Ownership
Brendon DeSimone, author of ‘Next Generation Real Estate’, advises home buyers to request a property expense statement from the seller.
Financial Experts suggest that homeowners save 1% of the home’s value each year for repairs and maintenance.Click to tweet
Hidden Expenses which should be considered:
- Possible propane or oil tanks. Sellers have asked buyers to reimburse them for remaining fuel. It could be $2000 for a 500-gallon tank that the home buyer may be asked for.
- Purchase of a lawnmower or hire of a service to mow the lawn.
- Purchase of furniture and appliances.
- Moving Expenses – Will you ask friends for help or hire a moving company?
Parking is highly valued in the city. It roughly adds about 10% to the value of the property.
Failure Taking into Account a Home’s Resale Value
It is very rare for buyers to stay in a home for decades.
It is important that you discuss current trends in the area and the prospect of selling the house for the same value in the future.
This could mean 2 years, 5 years, or 10 years from now.
Avery Boyce, a real estate professional, advises that you should consider the chance that you may want to sell in a few years.
It is important to avoid being put in a financial bind while trying to sell.
Buying a house isn’t simply acquiring a place to raise a family or starting a new chapter in your life.
It is an investment which should increase in value.
Not Checking the Neighborhood.
You will probably live here for years.
Perhaps there is something you should know before clinching the deal.
There may be a neighbor who arrives home late at night on a muffler-free motorbike.
A possible buyer was about to finalize a deal for a property in San Francisco.
He had only been at the house in the daytime.
He checked the area at night when advised by his agent and found the house covered with a cold, windy fog.
He resumed his house search in another area.
Do your homework before making an offer:
- Talk with the neighbors.
- Visit the house day and night, weekday and weekend.
- Get information from the local newspaper and neighborhood blog.
- Get an App which will inform you of crime in the area.
- Google street address – you might get information about a local business which could limit street parking spots.
Failure to Investigate the Homeowners Association
One in five Americans lives under the rule of a Homeowners Association in a private neighborhood.
DeSimone advises prospective buyers to investigate the Homeowners Association.
It is worthwhile to get permission to sit in on a meeting to ascertain what issues are being dealt with.
The Homeowners Association decide what its residents can and cannot do.
This helps to promote a certain kind of lifestyle.
The fees can amount to several hundred dollars and there are additional fees for breaching a bylaw.
The Association is responsible for the upkeep and maintenance of communal areas:
- Servicing the pool.
- Looking after lawn care.
- Making sure security lights and gates are functioning properly.
The Association and you will have to cover the costs of delinquent behavior.
Despite the hidden costs and traps, the majority of US citizens want to own a home.
It is important, however, to make the right choices.
This will provide you with a comfortable lifestyle and a good investment for the future.
Listen to the advice of the experts and do your homework.