By Ray the Realtor Kutylo
Signal Contributing Writer
Buying a home is usually the largest financial transaction a person ever makes.
If you want to buy, but fear gets in the way, there are some simple steps you can take to reduce and conquer your fear and be confident that you are making a sound decision to buy. With some help from Investopedia, here are the top five reasons you may be holding off on buying a home and, more importantly, some ways to address the concerns.
No. 1: Loss in property value. In California, home prices go up in value, but they can also go down if affected by disasters such as earthquakes, fires or major economic downturns. Neighborhoods can gradually decline, newly built homes can make older neighborhoods less attractive or an unpleasant development (prison, landfill, highway, etc.) could be built nearby.
But you can take precautions, like buying in a low-crime area where the homes are well-kept, primarily owner-occupied and with high-quality schools nearby.
No. 2 Overwhelming maintenance costs. All homes have costs to maintain, and some homes become literal money pits. There are a couple of things to keep in mind when choosing a home. First among them is to buy a home that has been well-maintained.
While homes with deferred maintenance can come with a lower purchase price, the costs to upgrade or repair can be considerable. If the home is older, look for recent upgrades and replacements to major components like the roof, plumbing, electrical, and air conditioning systems. You
Once you have your offer accepted and early in the escrow, hire a professional and experienced home inspector. You and your Realtor should be there for the inspection.
No. 3 Buyer’s remorse. Everybody has a fear about “buying the wrong house.”
The first and foremost is to know your priorities, and write them down. Consult with all of the decision-makers on and share the list with your Realtor.
Identify your price range with a trusted Lender and stay well within your budget. Buying a home nearly always involves compromises, but keep in mind your goals, dreams and must-haves. That said, don’t be afraid to walk away from a house because there are always other homes that will come on the market.
No. 4 Unable to afford your mortgage. Many people wonder how they will afford their mortgage if they lose their job, especially if their homeownership costs exceed what they are paying for rent now.
To deal with a potential loss of income, have a significant, If not large emergency fund as a reserve, and insurance for “just in case.”
Before you start the home-buying process, set up a budget so that you know what your obligations are versus the money you take home every month.
No. 5: Tricky mortgages. If you plan on owning a particular home for a limited number of years and then selling a buying another home, perhaps other loan products, such as a lower interest 30 due on five or seven loan, is for you.
Or if an initial low interest loan that adjusts periodically will be something you need in order to qualify for a larger home now, with the expectation that your job will have significant pay increases that you can count on.
Ray “the Realtor” Kutylo is the team leader of the SCV Home Team at Keller Williams VIP Properties. The Team brings experienced and professional service, commitment and value to every transaction, whether you are a home buyer or seller. Ray can be reached at (661) 312-9461 or by email at [email protected]. The views expressed are his own and not necessarily those of The Signal. CA DRE 00918855