First Time Home Buyers

Measure twice sell once

Posted on by Teresa Boardman

The measurements in our MLS are not exact. Those same measurements are fed to a zillion other websites. We expect them to be close but sometimes they are way off.

Room measurements are usually rounded and expressed in whole numbers which is alright for most uses. When it is time to buy flooring the measurements will need to be more accurate.

Houses are not easy to measure. We start with the foundation and then do some math to get the total square footage. Then we need to figure the finished square footage.  Each of those measurements is important when determining the value of a house.

My own home shows up in tax records as being 30% smaller than it is. That is why I don’t assume that the Realtor’s measurements are wrong and the tax assessors are right.

I find houses that mysteriously gain a few hundred square feet. Sometimes it is because part of the basement was finished or unfinished space was added or whoever got the measurements either accidentally or intentionally got them wrong.

Often home buyers will bring rulers to the inspection and take new measurements. Several years ago I had some clients who did that and then backed out of the purchase when a few hundred square feet went missing. For them, it was more about the honesty of the seller than it was about the size of the house.

Most of the houses that are on the market today were not measured. The measurements from the last time they were on the market were used instead. Appraisals usually include measurements and they are accurate to the point where I wouldn’t waste my time arguing with an appraiser. 🙂

I keep four types of measuring devices in my car and I am not afraid to use them or lend them to my clients to use while house hunting.

Buyers agents during a sellers market

Posted on by Teresa Boardman

I recently talked to a home buyer who has worked with a couple of agents this year. When choosing the right buyer’s agent experience is very important but it is also important to choose an agent who has time for you.

Houses are on the market for a very short time. Your agent will need to show you homes on short notice. If that agent is already working with several buyers who have a similar timeline for when they want to buy a house it could end badly.

Your agent will need to work very hard for you. That agent will need to be able to help you make an offer within deadlines imposed by home sellers. Your agent should have experience with the type of housing you wish to buy and the area where you are looking.

In the current market working with home buyers is very challenging for home buyers and their agents. Choose your agent wisely, do not choose the busiest agent.

Ask the agent what his/her limit is on how many buyers they can work with at once and how many they are currently working with.

If the agent doesn’t have a limit that too should be a red flag.

You can pay too much

Posted on by Teresa Boardman

No one else is going to tell you this so I am going to have to do it. It is quite possible to pay too much for a house. Both by paying more than the house is worth and more than you can afford to pay for housing.

First-time homebuyers who pay too much for their first house may have to wait longer to “move-up” to larger houses. Sometimes people believe they will stay in the same house forever but plans can change because of a job, marriage, death, or divorce.

Home prices are still climbing but many of us remember the great recession. Prices stalled and then went down.  People had a hard time coming up with the money they needed to fill the gap between the money they got for the sale of their house and the amount they owed on the mortgage.

Going over budget on a home purchase can also lead to trouble. There are people who are house poor. They don’t have much disposable income because of their large house payments.

Just keep in mind that owning a home is a long-term commitment and it will have an impact on your life and maybe on the lives of others if you have a family.

There is a good chance that neither your lender nor your real estate agent will try and talk you out of spending too much. It is up to you.

Don’t wait for the weekend

Posted on by Teresa Boardman

Now that the days are a little longer it is easier to view houses in the early evening. If you are interested in buying a house that

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is on the market it might not be on the market when the weekend rolls around.  Don’t wait for the open house. The vast majority of homes that are on the market are never held open.

Houses can often be shown during the week, after work, before work, or during lunch hour. People who have jobs that don’t have rigid hours have an advantage.

Consider asking your employer for some flexibility if you are house-hunting this spring.

If interested don’t wait for an open house

Putting your best offer forward

 

Don’t give up

Posted on by Teresa Boardman

I read an article about Millenials who are giving up on homeownership. I remember feeling that way myself back when interest

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rates were in the double digits. Houses were less expensive back then but those mortgage payments were killer.

Wages have not gone up as much as houses have and housing is more expensive than it was when I was a first-time homebuyer. We wanted a house very badly. We never gave up and eventually, we were able to buy a house.

We got some help though. We were able to get down payment and closing cost assistance. That is why I have a link over the right to a resource for various grants and loans for cash-strapped home buyers.  There is money out there and the site will help you find it. Click here to see if you are eligible. I have worked with numerous clients over the years who have used the programs on the site.

Also, ask your lender about programs for first-time homebuyers.

Don’t give up.