IN Penn Hills Summer 2017 | Page 22

S P E C I A L S E C T I O N : R E A L E S TAT E costs (about 3-5 percent of the cost of your home) and the potential of paying private mortgage insurance (PMI) if you are unable to put 20 percent down on your home. 4. BUYING: Protect yourself! It’s easy to get wrapped up in signing papers and lose sight of what you are agreeing to when buying a home. Fortunately, contingency clauses can protect you from losing what is yours. An example is a mortgage-financing contingency; if you lose your job or your loan falls through, you’ll get your “earnest money” back in full. Otherwise, you may be obligated to follow through with purchasing a house you can no longer afford. 1. BUYING: Getting an inspection can save you money in the long run. Inspection fees can range from $300 to $500, prompting some to think they can save money by avoiding an inspection. In almost all instances, this is false. Many issues in a home can go unseen by the untrained eye. If an inspector reveals defects not disclosed by the seller, you are able to negotiate a new offer or rescind altogether. Without an inspection, these potentially costly issues would ultimately fall on the buyer’s shoulders. 2. BUYING: Is buying always the better option over renting? This is a debate often discussed within the real estate market and the answer depends on a variety of variables including location, financials and length of time in the home. In general, it is advised to purchase a home if you plan to spend more than two years there. Not sure how long you’ll be in your home? Find the break-even point between renting and buying to help guide your decision. 5. BUYING: Enjoy the view? It’s obvious that homes with a view can sell big. In fact, Realtor.com states that homes with a view of the city sell the fastest, with an average of 83 days on the market, while homes with an ocean view sit for 98 days (mostly due to the elevated price of oceanfront property). If you are in love with a home that has a view, be sure it is there to stay. Although you may see rolling hills through your living room window now, who’s to say a real estate developer won’t see that same space as the perfect opportunity to build more homes? Check with your local municipality for land use regulations to make sure your view will remain. 6. BUYING/SELLING: Get a second opinion. 3. BUYING: Be sure you can afford more than just the mortgage. Getting preapproved for a mortgage gives the buyer a sense of how much house he or she can afford, but don’t presume this figure to be your only monthly payment. Keep in mind costs that may not be as evident, such as utility bills, taxes, homeowners association dues, mortgage insurance and money needed to furnish your home. On top of that, consider closing 20 724.942.0940 TO ADVERTISE | Penn Hills When you have lived in your home for years, it’s easy to overlook problems that potential buyers may spot right away. Have a relative or trusted friend come over to spot any small fixes that you can make prior to putting your home on the market to make sure it’s in optimal condition for selling. When considering buying a home, it’s also helpful to have someone who would not be buying the home go with you to take a look. He/she will be able to point out potential issues that you may not see when trying to make such an important decision. 7. SELLING: Ignore the housing market. Don’t waste your time watching the housing market for the best time to sell. According to Investopedia, “it doesn’t matter what your home is worth at any given moment except the moment when you sell it. Being able to choose when you