I hope you had a wonderful Holidays with a fresh start on your way to fulfill your dreams and plans in the 2017
For many people who rent a place to live, building wealth and pursuing the American Dream starts with home ownership. Planning to pay down the mortgage and moving on to the next property usually follows the first purchase. For college students and recent graduates, this can start as early as right after graduation. In this starter home, typically there is more space than the rental place, there are more amenities, and even a potential for future rental income if desired. This is all possible because, for a renter, part of the monthly rent payment goes toward the upkeep of the property, mortgage payment, property manager’s fee, etc. In the end, the property owner has to make a profit as well; it all comes out of the tenant’s pocket
. To top if off, owning your home helps building wealth by leveraging the down payment (as low as 5% for a starter home) to control and own future price appreciation.
As you start shopping for your first house, you have the option of new or existing, resale, houses. Newer houses are usually located a bit farther in the outlying communities and are somewhat more expensive than an existing houses. There are more choices and options in a newer house, but you have to pay a higher price.
If you decide to look for an existing house, here are a few pointers to help you deal with the sellers better. As you go for on a house showing often it is best to keep a poker face when you’re dealing with the other party. It’s not in your best interest to be totally candid with the seller and the listing agent when you’re considering a home. Here a few things that are better left unsaid.
This is at the top end of our budget.
Don’t let the listing agent (seller’s agent) know that a home is at the top of your budget. You want to keep all the bargaining chips you can, and letting the seller know your budget can hurt you when it comes time to negotiate.
I hate the paint, or furniture, or cabinets, or any of the decorations.
No matter how hideous the wallpaper in the kitchen is, take extra care not to insult the seller’s taste. If they’re considering multiple offers, you don’t want to be the buyer that offended the seller!
We can’t wait to renovate.
Customization is one of the big perks of homeownership, but it’s best to keep your renovation plans quiet for the moment. The seller may have a lot of memories in the home, and may not appreciate your plans to immediately tear down some walls.
Often in an existing house, you may have to make some compromises on space, functionality, or amenities. You may have to look past some cosmetic repairable items. Many of these cosmetic items can be upgraded gradually, but many times some functionality cannot be fixed; such adding an extra bedroom or bathroom, or addition of a garage due to space constraints.
Invest in your future and use your 2016 tax refund as part of your down payment, pay off your debts, increase your credit score and enhance your purchasing power. It will yield plenty, much more than those new pair of shoes or the new car.
Wish you a prosperous 2017.
Cheers!