SPECIAL SECTION:
Real Estate
WHAT FIRST-TIME
HOMEBUYERS
SHOULD KNOW
8. 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 sell your home, rather than
being forced to sell it due to job relocation or financial distress, will
be the biggest determinant of whether you will see a solid profit from
your investment.”
9. SELLING:
Will renovating always increase my resale value?
Make conscious decisions when renovating your home. While
newer will entice potential buyers, be cognizant of what rooms you
update and how you do it. While updated kitchens will increase
the value of your home, be sure to appeal to a wide range of tastes.
A good place to start is with the appliances. Realtor.com states that
homes with stainless steel appliances sell 15 percent faster than those
without. Updated bathrooms are easier to satisfy a wider range of
buyers’ desires for luxury, but be sure to keep the colors neutral.
Last year was a great year for new homebuyers.
According to the National Association of Realtors, about
35 percent of the homebuying market was made up of
first-time buyers. Yet, each year is not created equally in
the mortgage industry and real estate market. Changes
happen frequently and it is often hard to keep up. If
you’re looking to break into real estate for the first time,
here are some insights into how to navigate the market.
Saving. Step number one for a first-time homebuyer
should always be saving. Take a look at your current
finances. It’s recommended that your mortgage
payment not exceed 30 percent of your gross monthly
income. See where you can cut back spending to put
away a little extra out of your paycheck every month
for your new home. Not only can this cash go toward
a down payment, but most likely you’ll need furniture,
appliances, and decorations to furnish your new home.
Don’t just calculate the amount of money needed for a
down payment. Keep in mind the unforeseen expenses
such as home repairs, agent fees and closing costs. You
can never save too much!
1. Mortgage. Applying for a mortgage can be an
intimidating process, but if you prepare accordingly,
you’ll be happy with the outcome. According to
LendingTree.com, mortgage lenders are allowing
higher debt levels for borrowers with lower down
payments (as little as 3 percent on a conventional
mortgage loan). You may not need the typical 20
percent down that was required of homebuyers a
few decades ago. If your debt-to-income ratio is high,
you may not have to worry. Mortgage companies
Continued on next page >
10. SELLING:
Don’t spend earnest money!
Many sellers make the mistake of depositing and spending earnest
money before closing day. If the transaction doesn’t go through or
the buyer pulls out due to repair issues, it is up to the seller to return
Continued on next page >
WEST ALLEGHENY
❘
SUMMER 2019
29