The last time the housing market was in a slump like this was 1974. Even then, it lasted only a year. The current market has been in a steady decline since 2005.
So what does this mean for those in the market for a new home? Frankly, it doesn’t get any better. However, even in these conditions, it pays to be aware of your surroundings and make the most of every situation. The following checklist will ensure you get the most bang for your buck.
- Check your Credit Score
- Check your Finances
- Visit Homes after Dark
- Work with an Agent you trust
- Inspect before buying
- Don’t Rush
A good credit score will go a long ways toward qualifying for the best loans. You are entitled to a free report from all 3 credit agencies (Transunion, Equifax, Experian) once a year. To get your free report, visit www.annualcreditreport.com.
Make sure you’re in good financial condition to buy a home. This means paying off credit card debt, car notes, even student loans. The idea is to be sure that you have plenty of cash left over each month to pay the mortgage. Use a mortgage calculator to figure out just how much you can afford.
Don’t be fooled by breezy homes on lazy Sunday afternoons. House-shopping in the daytime is not a good representation of what you’re purchasing, since many of your potential neighbors are out enjoying their weekend. Come back at night and take notice of things like street lights, unoccupied properties, street parking, noise, etc.
This one is all about instinct. Your agent should clearly understand what you’re looking for, and be willing to spend as much time as needed to find the perfect home to suit your needs. If your agent never seems to have the time, or also represents the seller – move on.
Hire a licensed inspector to assess the home from top to bottom. Check for foundation issues, pests, roof leaks, electrical issues, plumbing problems, etc. It is important to have a head start on upcoming maintenance costs before signing on the dotted line.
The housing market will not turn on a dime. Take your time and wait for a home that you feel good about. You should never feel forced to make a quick decision, if that is the case – it’s probably a bad deal to begin with. Simply move on the next great home around the corner.
Loading ...