Here are some helpful tips for you if you may be thinking about purchasing a home in the near future:
Timing the market. People obsess over “timing the market perfect”. Everyone wants to time the market as close to possible to get a great deal, but the truth of the matter is the numbers don’t lie. In the chart below you can trace the average purchase price of all homes in Maricopa County by month over the last year. For the last 12 months you will want to look at the light beige bar on the right side of each month on the chart next to this. As you can see the prices do not fluctuate that much and in some case are up and down from month to month. Much of this has to do with the homes that sold property conditions and if they were short sales or foreclosures vice traditional sales. The best advise is to not overly obsess with trying to anticipate exactly what the real estate market is going to do from one month to the next. The better practice will be to find the home you love and pursue it. The housing markets are cyclical and go up and down, and back up again. The exact right moment to buy a home is when you find one you absolutely love and can afford.
Bigger is not better. Buying a home is competitive; everyone wants a bigger and better home than their friends and family have. Obsession with the biggest and best home on the block is common practice. Please keep in mind though that the biggest and best home on the block is the highest priced one, appreciation is much slower, and is harder to find potential buyers for if you ever want to sell. Especially in Arizona we wont even discuss the electrical bill for a gigantic home in the west valley during the summer months.
Should I get pre-qualified or pre-approved? Always request to get Pre-approved! Pre-qualified just means that a lender gave you a quick interview and ran some numbers and based on that, you should be able to qualify for a certain purchase price.Whereas the pre-approval process is when the lender actually goes through all of your financials and credit information and can determine not only how much you can qualify for but what type of rates you can qualify for.
The hidden costs. If this is your first home purchase or it has been a while since you’ve bought a home,beware that when you purchase your home there are numerous sleeper costs or hidden costs. These are all disclosed to you but canadd up quick if your not paying attention to them. Most homebuyers are concerned with their mortgage payment primarily, but before you get to your mortgage payment, you have to close on your home and there are many closing costs. You have your loan origination paid to your lender, title closing costs, property taxes, insurance, and homeowner’s association transfer fees if applicable. These costs ultimately add up to thousands of dollars so you need to know exactly what your looking at to ensure you can close on your home.
Do your research. Check out what homes are selling for in the neighborhoods and cities you are looking at. Being preapproved will help you determine if where you want to buy coincides with what amount you are preapproved for and you can adjust your search as necessary. A good rule of thumb to ensure your quality of life remains in balance is your housing costs should not exceed thirty percent of your income.
If your an active duty member of the armed forces or a veteran, there are other helpful tips you need to know about for your veterans loan. Please contact me directly for assistance at the number below. Theres also helpful information about selecting a Realtor for veterans.
Ewen Real Estate is here to assist you so take advantage of our professional real estate services. Please contact Mike Ewen (623)824-6274 or email mike@ewenrealestate.com.
