As a potential homebuyer, it's natural to feel overwhelmed by the constant reports of a struggling real estate market. However, what you may not know is that many of the same people predicting doom and gloom are also finding success in this industry. The key is knowing the secrets to making smart investments in today's economy. And with these tips, you'll be well on your way to buying real estate with confidence.
One important factor to consider when researching a particular area is its crime statistics over time. While safety should always be a top priority, a neighborhood with a slightly higher crime rate that has been decreasing over the years can actually be a smart investment. This trend suggests that the area is becoming safer and will likely continue to do so.
If you're thinking of buying a home, start saving now. Many people begin discussing homeownership long before they actually make a purchase. This is the perfect time to start setting aside money for a down payment, typically around 20% of the home's cost.
For those with families or plans for one in the future, it's important to look for homes with enough space to comfortably accommodate everyone. Safety should also be a top priority, especially if the home has a pool or stairs. Purchasing a home from someone who has raised their own children there can provide peace of mind about its safety for your own kids.
Unlike renting, buying a home with a fixed interest rate means your monthly payment will remain the same for the duration of your loan, whether it's 15 or 30 years. This makes your financing more manageable and predictable.
When considering a potential property, be sure to thoroughly check any additions or renovations that have been made to ensure they are up to code. If they are not, you could be responsible for bringing them up to standard. This is often found in lower income areas and when the homeowner has completed the work themselves.
If you're interested in negotiating a better price for a home, pay attention to how long it has been on the market. Typically, the longer a home has been listed, the more willing the homeowner will be to negotiate.
To speed up the buying process, consider asking the seller for credit to cover necessary repairs on the property. This takes the responsibility off the seller and allows you to move into your new home sooner. Alternatively, if you have extra funds, you could also accept the property as-is and handle the repairs yourself.
If you have experienced a foreclosure in the past, there are options available for you to become a homeowner once again. Mortgage companies like Fannie Mae and Freddie Mac may be willing to back another home loan for you in as little as three years, depending on the circumstances surrounding your previous foreclosure.
In conclusion, while the economy may be struggling and there are risky real estate investments out there, there are still opportunities to make smart purchases. By understanding the current market and following these tips, you can confidently find your piece of the real estate pie.