Last year saw first-time home buyers snapping up the highest market share ever recorded (according to the National Association of Realtors). After years of being pushed out of the residential market by spiraling home prices, first-timers are now coming into the market in force. Yet navigating the waters of 2011-2012 Asheboro real estate market can be tricky, especially for the first time home buyer who is faced with determining when – and what – to buy.
Considering time-tested real estate buying guidelines can relieve some of the uncertainty that goes with unpredictable economic news. When considering buying a home, here are two fundamental questions that can help with a first home-buying decision:
1 – How long do I plan to live in this home?
If the answer is one or two years, or that you can’t be certain, this may not be the right time for you to buy your first home. If you might need to relocate out of Randolph County or expect to outgrow your new home quickly, some of the principal advantages of home ownership might be cancelled out by the cost. Since there is the possibility that the last quarter of 2011’s low prices may stay stagnant for another year, the timing may not be good for you.
On the other hand, if you plan to stay in the home three or more years, this could be a terrific time for you to buy that first home. Prices are more affordable, mortgage rates remain in the low range, and it is a buyers’ market out there. In this sort of climate you have more room to negotiate a great deal on your first home. But as soon as the market picks back up this negotiating advantage may begin to disappear.
2 – How much home can I afford?
Today’s economic climate rewards conservative spending, and the housing budget is a determining component. Even if you are able to technically afford the mortgage on a large home, it is important to include reserves both for retirement and for emergency cash needs – not to mention the cost of maintaining a home. According to most experts, your mortgage payment should be no more than roughly 33% of your income. You’ll want to make sure you have cash on hand for a down payment, closing costs, and possible home repairs.
So if you plan to stay in your new home for several years and have taken a close look at the total cost of owning a home – this could be the perfect time to buy your first home!
Contact me today to start the conversation: email@example.com, or 336-953-6526.
Visit my website at http://www.WaynetteAraj.com