First-Time Home Buyer Concerns
May 29, 2019
As a first-time home buyer, what are the issues you need to pay attention to when house hunting for a new home? You can spot some problem areas yourself, but others may not be evident at all without doing research and asking questions about the location of the homes for sale that you might be interested in.
What Is This Real Estate Market Like?
Are the homes where you are searching for real estate moving fast? Do they sell quickly once they hit the market or do they linger on the MLS listings for a long period of time? And why are these homes selling or not selling at the pace they currently are?
These are important things to know-the area may have a reputation for certain kinds of problems that make it difficult for people who know the area well to commit to buying a home there. Or the opposite may be true-there may be a good reason why homes enter and leave the housing market very fast in a given locale.
Are There Environmental Factors That May Affect My Choice to Buy?
An area that is known for flooding, forest fires, earthquakes, or other issues may still be an active and healthy housing market but if you are new to the area and don’t know about these things, you may find a home with a price tag that looks like a steal. And there may be a very good reason for that price tag. FHA home loans do permit purchases of homes in areas that may be known for natural disasters, but proper insurance coverages will be required.
Ask questions and do some homework about the local history where natural disasters and other problems are concerned. You’ll be glad you did.
Ask direct questions of the seller. “When was the last time you had a flood in the area” and “How many wildfires have threatened this area in the last five to ten years” are good, straightforward questions. Pay attention to how the seller answers and beware of anything that sounds defensive, evasive, or otherwise not as direct an answer as the question requires.
Ask the Seller How Long They Owned The Home and Why They Are Selling
If you are in the market for a home as a new house hunter, but don’t want to buy a flipped house, asking the seller questions about how long they have owned the home and why the home is up for sale can tell you a lot about the seller’s track record. A house flipper and a legit homeowner are not the same thing.
Ask a Realtor About Properties in the Area
If you have your eye on a home you want to buy but you aren’t sure you will commit to that particular sale, ask a realtor about comparable properties in the area and make sure you know what your other options are before committing to or walking away from the property. Knowing your options can never hurt.
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Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
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What Is This Real Estate Market Like?
Are the homes where you are searching for real estate moving fast? Do they sell quickly once they hit the market or do they linger on the MLS listings for a long period of time? And why are these homes selling or not selling at the pace they currently are?
These are important things to know-the area may have a reputation for certain kinds of problems that make it difficult for people who know the area well to commit to buying a home there. Or the opposite may be true-there may be a good reason why homes enter and leave the housing market very fast in a given locale.
Are There Environmental Factors That May Affect My Choice to Buy?
An area that is known for flooding, forest fires, earthquakes, or other issues may still be an active and healthy housing market but if you are new to the area and don’t know about these things, you may find a home with a price tag that looks like a steal. And there may be a very good reason for that price tag. FHA home loans do permit purchases of homes in areas that may be known for natural disasters, but proper insurance coverages will be required.
Ask questions and do some homework about the local history where natural disasters and other problems are concerned. You’ll be glad you did.
Ask direct questions of the seller. “When was the last time you had a flood in the area” and “How many wildfires have threatened this area in the last five to ten years” are good, straightforward questions. Pay attention to how the seller answers and beware of anything that sounds defensive, evasive, or otherwise not as direct an answer as the question requires.
Ask the Seller How Long They Owned The Home and Why They Are Selling
If you are in the market for a home as a new house hunter, but don’t want to buy a flipped house, asking the seller questions about how long they have owned the home and why the home is up for sale can tell you a lot about the seller’s track record. A house flipper and a legit homeowner are not the same thing.
Ask a Realtor About Properties in the Area
If you have your eye on a home you want to buy but you aren’t sure you will commit to that particular sale, ask a realtor about comparable properties in the area and make sure you know what your other options are before committing to or walking away from the property. Knowing your options can never hurt.
------------------------------
RELATED VIDEOS:
Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
Analyzing Your Debt Ratio
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