Search Realty Corp., Brokerage, a real estate company, has revealed various factors that come into play when a potential home buyer starts looking more closely at the real estate market. The company is pointing out that all potential buyers should be aware of the costs involved in buying a home in order to determine whether or not it’s a viable option.
More people are becoming aware of the benefits of buying a home as opposed to renting, but this is often easier said than done. Understanding the costs involved in buying and owning a home is a vital part of the process, especially for those potential purchasers who are trying to evaluate if homeownership is an affordable option.
The problem is that some people see the listing price and assume that covers the total cost, forgetting to factor in such things as insurance, down payments, and the actual costs involved with moving to the new home as this can mean purchasing major appliances and new furnishings. Another thing that is often overlooked is the need to be responsible for the upkeep of the home. A renter is able to call the landlord or homeowner to fix any problems without incurring any costs themselves so it can come as a shock to discover the true expense of owning a home.
There are some major decisions that need to be made before considering a home purchase, and the first is to determine the property value of homes that look interesting. It’s best for the potential buyer to compare the prices of similar sized homes recently sold within the same neighborhood. This will allow the potential home buyer to see if the price is fair or if it’s way too high. There’s always the chance it might be a bargain.
The next major decision is to compare various mortgage loan types and review the required down payments in relation to the amount of money available. Down payments are based on the percentage of the value of the property and also by the type of mortgage selected and typically range from between 3% to 20% of the property’s value.
Other additional costs include the closing costs and the costs of actually moving into the property through hiring a moving company like United Van Lines or simply renting a truck. One cost may be able to be minimized, and that’s the budget for maintenance and repairs. Buying a home that is in good order or using a home inspection company can help estimate the typical costs for major and minor repairs. Once all these numbers have been assessed then it’s much easier for a potential home buyer to ascertain whether or not they can afford the property.