#1 A Home As An Investment
TV shows give the impression that all homes drastically increase in value forever. If that’s true then it must be OK to overpay for your house.
Not so fast. This is only true in the largest, fastest growing U.S cities. Growth in the Syracuse area is much slower. The benefit is that the homes are more reasonably priced for buyers. Buy a home because you want to live in it, not as part of an investment strategy.
#2 Too Much House
When you buy a home you’ll get a monthly mortgage, but don’t forget about taxes, insurance and PMI (if you put down less than 20%). Do you have a lawn mower? A snowblower? Tools?
Expenses add up fast and as the size of a house increases so does the upkeep required to maintain it, in both time and money. Ask yourself if you need a 2600 sqft home or if you can be happy with 1900 sqft instead?
#3 Who Is Paying For This?
Driveways need to be repaved, furnaces die, roofs leak. Maintenance of the home is your responsibility and you’ll need money set aside to pay for it. A good rule of thumb is to plan to spend 2-3% of your homes cost on routine annual maintenance.
#4 Flood Zones
According to FEMA, as of 2016 at least 2400 homes in Onondaga county are in a flood zone. These homes require flood insurance. The Insurance is not expensive but it is an added cost, and if you ever have to use it… it’s because your house flooded!
Contact the town’s administrator for more info or search the the FEMA database: https://msc.fema.gov/portal/search
#5 Fixer Uppers AKA Money Pits
Whether you hire contractors or do it yourself…
It WILL cost much more than you expect. It WILL take much longer than you expect.
There are many new expenses with any home and you will likely choose a few projects to make the home “yours.” Adding the remodel of a home to your “to do” list is not recommended for first-time homebuyers.
#6 Ignore Aesthetics
Ugly carpet might have beautiful hardwoods underneath, outdated furnishings won’t be staying with the home and a fresh coat of paint and some new trim can often transform a house for less than $2000.
You don’t want to miss out on a home because you were quick to judge online photos. Spend time looking at houses in person, even ones you know don’t like. Open houses are a great way to do this and better refine your deal breakers.
#7 Hire A Home Inspector
Home inspectors are trained and experienced to uncover hard to find problems.
A home inspection usually pays for itself by uncovering defects that the buyer can then negotiate with the seller and save money or have the defect repaired.
Approximately 15% of home buyers don’t hire an inspector when buying a house. Don’t be one of them!
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