For many years throughout the 90’s and early 2000’s, real estate went up dramatically and everyone wanted a piece of home-ownership. As with anything. What goes up Must come down. Unfortunately, the real estate bubble burst in 2008 and 2009 showed the dark side of home ownership. However, owning a home is one of the best things you can do to build wealth, and many want to own a home to have a place to settle down. Here are the top 10 mistakes new home buyers make.
Stretching to get into a house: If you can’t quite afford your house payments, this could become a problem for several reasons. First, a minor financial blip- such as a lost job- could cause you to be unable to pay and send your home into foreclosure. In addition, you may not have the money to make necessary repairs and the home could fall into disrepair and decline in value
Not understanding your mortgage: Many homeowners lost their houses to foreclosure in 2007 and 2008 when their mortgage payments jumped up exponentially and became un-affordable. This occurred for many because they had adjustable rate mortgages they didn’t understand. Make sure you completely understand the terms of your mortgage and what your monthly payments will be. Generally, the safest option is a fixed rate mortgage in which your payments stay the same for the entire term of the mortgage.
Not having an emergency fund: Homes are a wonderful thing, but they can also have problems. A leaky roof, a furnace that breaks or a flood in the basement can cost you hundreds if not thousands of dollars. If you don’t have an emergency fund, these realities of home ownership an become huge issues.
Not working with a realtor: A real estate agent is an expert in the housing market and can guide you though the entire buying process from finding a home to making an offer. If you don’t use a realtor you may miss out on seeing homes that were a better Deal. Likewise, you may make an offer that is too high or overlook something about a property that an expert would have caught.
Not researching property values: You don’t want to pay too much for a property or pay more than it is worth. Find out what similar properties are going for and make your offer in line with those.
Not getting pre-approved for a mortgage: Before you begin shopping for a house, you should go to a mortgage lender with your financial data and find out how much they are willing to lend you. Not only does this make the process quicker when you actually find a house, but you also won’t waste time and energy looking at houses that are outside of your price range.
Falling in love with the first house you see: It can be easy to get caught up in the excitement and think you have found your dream house. Still, if you don’t look around first and explore all your options, you may regret it.
Not researching the neighborhoods: Location is often the most important factor in what happens to the value of your property. Find out about the school district and what the neighborhood is like before you buy.
Misunderstanding the realities of home ownership: With home-ownership comes responsibility. Not only will you have to foot the cost of repairs yourself, but you will also be responsible for landscaping, lawn mowing, gardening and all the other things apartment-dwellers don’t have to worry about. Furthermore, you can’t just pick up and move when you have a house.
Assuming property values will always go up: For a long time, it was believed that your home was a source of instant wealth. When the real estate bubble burst in 2008 and 2009, many homeowners got a harsh wake-up call.
Author:Victoria Schweyher Phone: 908-472-5540 Dated: June 19th 2016 Views: 92 About Victoria: ...
View our latest blog posts in your RSS reader. Click here to access.
About Ellen Dell'Alba - Team Leader of the Platinum Group:
Ellen is one of the most diverse realtors among the Keller Williams Realty Agency in Monmouth & Ocean Counties. Being with the company for several years, she continues to make considerable strides in becoming the best realtor she can be. Ellen is a listing specialist, along with having certifications in ABR (Accredited Buyers Representative) and BOLD. Her strategy in helping her clients buy or sell a home is fairly simple: "I do whatever it takes to make my clients 110% satisfied, and that is my personal guarantee!"
Ellen attributes her impressive 80% property sales rate to her relentless drive and work ethic. Working around busy schedules, offering multiple open houses, hosting Broker Lunches, as well as spending a considerable amount of time and money in advertising are just some of the ways Ell en makes sure her client's listings get maximum exposure.
Ellen's view when it comes to home buying is: A home is not a home because of its room dimensions or the color of the walls. It is about how you feel when you walk through the front door, and the way you can instantly envision your life unfolding there.
Ellen resides in Ocean County, NJ with her husband and five children.
"I appreciate the opportunity to earn your business and look forward making your experience buying or selling a pleasant one. Invite me in and let me show you what your home is worth and how I can get you top dollar!" - Ellen Dell'Alba
Real estate market data for Jackson, NJ provided by Ellen Dy
"ellen was great! she sold our house within 4 days of it being listed OVER our asking price! she was always available to answer our questions! she also was very patient when it came to helping us purchase our short sale home as it took 4 months. she kept us in the loop with any and all status updates. we found our dream home! i would recommend anyone to call Ellen if they are looking to sell their house for a fair price and quickly! Thank you, Ellen!"