Buying your first home can be an exciting time. You’ve been planning, saving for your down-payment/closing costs and you’ve met with your Loan Officer. But the one thing the loan officer won’t cover for you are the hidden costs that can occur after you buy the home.
Check out the hidden costs that may surprise you
If you’re thinking about buying your first home, that pesky down payment has probably kept you awake more than a few nights. We get it—while a pre-approval is crucial for determining your buying power, it’s the down payment that shows you mean business.
But saving up is hard. In a study conducted by NerdWallet, 44% of respondents said a lack of a down payment was the roadblock keeping them from buying a home.
Making things even worse? Your well-meaning friends and family have probably given you at least one piece of well-meaning, but ill-informed advice, leaving you in more of a blind panic than you need to be.
We’re not saying that saving for a down payment will be a cake walk, but separating fact from fiction can go a long way. Here’s the truth you need to know.
We will never forget… Those who have gone before, not in search of glory, but to preserve a fragile peace… those who bravely forge a path towards freedom.
Overall this is a good checklist to follow. Note: You may want to do #4 before moving in and #5 doesn’t apply to most of our newer neighborhoods
Every home sale starts with a real estate purchase agreement a legally binding contract signed by home buyers and sellers that confirms that they agree upon a certain purchase price, closing date, and other terms. While the forms and wording vary across the country, there are certain words common to all contract that you will want to have down. Why? Because they spell out crucial info such as how much money you are paying, when you pay it and under what conditions you can back out of the deal.
Here are seven terms you are likely to come across in a real estate purchase agreement, and why you need to check these provisions carefully before you sign on the dotted line.
MLS Sales Outperform non-MLS Sales in Frenzy Market
Supply Under $200K Down 36% Over Last Year
Greater Phoenix ended the 1st Quarter 13% lower in supply, which was not helped
by a 2% decline in new listings entering the market. All price ranges are below last
year’s level of supply with the exception of the $1M+ market, which is up 1.5%. On
the opposite end of the spectrum, supply under $200K is down 36% from last year
and all prices in between are down 10%. Buyer competition is typically at its strongest
at this time of year and is expected to begin tapering off seasonally in May or
Despite the highly competitive, fast appreciating environment in the $100K-$200K
market, more sellers decided not to list their home on the MLS and many chose to
sell to an investor instead. This is ironic considering MLS sales in that price range sell
for 12% more per square foot on average compared to normal non-MLS sales, which
could equate to a $12,000-$22,000 gap. Additionally, the annual average sales price
per square foot rose faster for MLS sales in this range at 7.9% while non-MLS sales
rose only 6.0% over the last year.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC