Red Flags To Notice When Purchasing a Home

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If you’re a first-time homebuyer, you obviously won’t be too experienced with what to expect. Purchasing a home is s tricky, long and complicated process. You’ll probably need all the help and advice you can get. With that being said, when you’re looking to purchase a home, there are a variety of things that you should be looking out for that will act as warning signs. Here are a few of the most common red flags to pay attention to when going house hunting.

Insects/Pests

So you’ve just walked through your very first showing and you feel pretty confident about the house. It’s large enough to accommodate your growing family, it’s close to work and it simply feels right. However, you’d noticed several insects, from roaches to house centipedes. Who cares, it’s only a few insects, right? They’ll die out and you won’t have to worry about them, right? Wrong. Admittedly, it could have been a coincidence that there were a few pesky insects in the house, but you should certainly do your due diligence and follow up on the matter if you decide to go through with purchasing the house. What may seem like a few harmless bugs could lead to a serious infestation. These infestations are incredibly dangerous, as they can lead to thousands of dollars in repairs and, depending on the pests, health hazards.

Fresh Paint

So you’ve walked through another house and it seems perfect! You’d noticed that the current owners had buckets of paint in random rooms throughout the house, but it didn’t seem as they’d painted entire rooms, only small portions. No big deal, right? Wrong. While it may seem harmless at first, it very well could be a sign of a much larger problem. If you see buckets of paint lying about the house and only small portions of the house being painted, the owners could be trying to hide something. Make sure to address the situation.

Poor Neighborhood

When purchasing a home, you cannot solely focus on the home itself; you must also look at the surrounding neighborhood. If you decide to purchase the house, you will be a part of that neighborhood. Do your research on your neighbors and see who exactly is living around you. Don’t just look at who you’re living with, look at how they are living. If the neighborhood seems run down and dangerous, you may not want to move in at all. It could make things difficult to sell the house in the future.

Real Estate Myths Debunked

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Whether you’re trying to sell your home or looking for a home to buy, there is a great deal of misinformation out there. It’s important to learn the truth, because believing in one of these myths could force you to commit a costly mistake.
Sell Your Home for More Than it’s Worth
This is a common myth and it could actually hurt the sale of your home. Some people believe that setting an asking price above the home’s market value can help you sell your home for the price you really want. While it’s true that buyers try to negotiate the final price, trying to sell for too much can chase away potential buyers.
Buyers Do Better Without an Agent
The idea behind this myth is that the real estate agent’s fee will be spared. This is a false assumption. Real estate agents working for the buyer and seller share a percentage of the sale. In a case where the buyer isn’t working with an agent, the seller’s agent gets the full share.
Sellers Don’t Need a Real Estate Agent
While technically true, trying to sell your home won’t save you much money. The buyer will expect a discount from a seller working without an agent, so the money you save on the agent’s commission will be lost to the buyer. Additionally, you’ll have to be able to do everything an agent can do from listing the property online to handling the closing.
Sellers Should Remodel Their Kitchen and Bath
This is frequently recommended, but it may actually be bad advice. Buyers may have their own plans for the kitchen and bath, so putting in the work ahead of time could negatively impact a sale. Especially if they don’t share your tastes, they may prefer to look for a home that hasn’t been updated recently.
Sellers Can Expect to Earn Back What They Spend on Renovations
While it will be noticed, if the roof is in bad shape or the air conditioning doesn’t work, fixing these big ticket items won’t help you raise the value of your home. Buyers may feel it’s your responsibility to repair these things before putting the home on the market, so they usually won’t be willing to pay more for an updated home. However, if you don’t fix these things, you may actually lose value in your home.
There are more myths flourishing in the real estate industry, so always check to be sure something is true. If you don’t do enough research, you may find that it cost you money instead of helping you save. Always direct questions to a qualified and experienced real estate agent to avoid making devastating mistakes.

Renting Vs. Owning: What’s The Difference?

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Many people are torn between the prospect of owning a home versus the carefree lifestyle of simply renting. The pros and cons of both renting and owning have been laid out below in a simple and concise manner.
Upfront Costs

When calculating the upfront cost of renting a home or an apartment, the figures are relatively affordable. Renting only requires a light contract with first and last months rent along with a security deposit in order to successfully obtain said property. Alternatively, homeownership tends to be very heavy in regards to upfront costs. When going through the process of purchasing a home, a person is usually required to pay a certain percentage of the mortgage immediately including any and all closing costs.
Fluctuating Monthly Expenses

One advantage of owning a home is that the monthly mortgage payment is set by the bank who issued the mortgage. Depending on the type of interest rate that was negotiated, the monthly mortgage payment can remain steady for many months depending on how housing costs rise and fall. Alternatively, when paying rent to a landlord, the rent can be increased at the whim of a landlord but only if they follow proper legal regulations regarding rent increases. If someone is renting without a contract, the renter is at the complete mercy of the landlord in regards to the monthly rental rate.
Repairs and Renovations

A homeowner is financially and physically responsible for all repairs to the home. The bright side to this is that they also have the freedom to redesign, redecorate, or renovate the home as much as they desire. A person who rents isn’t usually afforded the same privilege. Landlords may impose strict rules in the rental contract regarding changes to the home or apartment, preventing the renter from painting, remodeling, or redecorating. On the other hand, renters aren’t responsible for any repairs and can usually apply for replacement appliances and fixtures if covered by the rental agreement.
Relocating

When renting a home or an apartment, deciding to pick up and move to a different city or state is relatively simple. A person can sublet the remainder of their lease to a third party and skip town before their rental contract has expired. On the other hand, a homeowner doesn’t have that same luxury. A homeowner must first prepare their home to be sold and ensure it has enough equity to be marketable. This could take months or years to accomplish.
Choosing whether to become a homeowner versus remaining a renter really depends on the type of lifestyle you live and whether you prefer security or freedom.