Tips to Avoid Buying a Money Pit

Buying your first house is a big milestone, not only do you have a place to call your own but there comes with it a sense of accomplishment.  For most people it is the single biggest purchase you will ever make.  It goes without saying that you want everything to work out.  However we have all heard stories of home buying gone wrong and homeowners being stuck with thousands of dollars in repair costs.  How can you avoid that happening to you?  Here are some tips to avoid buying a money pit.

Get Pre-Qualified

Finding out what you can afford before you start house hunting it will save you time and heartache.  Instead of checking out a bunch of properties beyond your reach you know exactly what you have to work with.  Take a look at your credit score and make any fixes that you might need to.

Buy New

Not all pre-owned homes come with a ton of repair issues but many will need some type of work done.  Buying a newly constructed home allows you to avoid all of that.  In case where there are new subdivisions being built you can even choose counters, floors and paint colors before the house is constructed.  New houses come with a warranty so if there are issues then the responsibility lies with the builder or warranty company to fix it.

Get a Home Inspection

This point cannot be stressed enough, NEVER buy a home without an inspection.  Homeowners want top dollar for their property and may gloss over the flaws in their house to get a quick sale, in some cases they may be completely unaware of issues.  Having an inspection isn’t foolproof but it does arm you with the information you need to put in an offer based on the value of the house and not wishful thinking.  Here are some more reasons why you need a home inspection.

Consider Your Career and Future Needs

Not only do you need to consider whether your job is secure but is there any possibility of being relocated in the future.  The last thing you need is to be stuck with a mortgage on your home and having to pay rent in another city for months on end.

House hunting is exciting this is an important step in your life but you also need to temper your expectations so you don’t end up with financial ruin later on.  Be ready to be flexible with your choices and understand what you absolutely must have in a house.  Be prepared to put in some sweat equity to make your house your own.  Most importantly be prepared to choose your home carefully and take all the steps necessary to make sure you don’t get a money pit.

Can You Sell Your Home Without a Realtor

Selling a house can be one of the most stressful things a person ever has to do. It can be made worse if you pick the wrong realtor to do the job for you. Whilst a realtor will take a lot of the day to day hassle away including advertising your property and showing it off they can charge quite a surprising amount of money for what is basically a very simple job. Having bought and sold a number of properties over the years I’ve begun to question if a realtor provides value for money?

The Value of Your Property

So where do I start if I want to sell my house without using a professional realtor? There are some obvious things that need to be done. I need to ensure the house is neat and tidy and presented in the best manner possible. Damp spots painted over, leaking drain pipe fixed and the dog hairs vacuumed up for starters. However the key first major step is to try and figure out how much my property is worth. This isn’t difficult; a simple online review of property prices and local newspapers gave me a very good idea as to what houses in my area and of my type were actually being sold for. In some areas, actual sale prices are a matter of public record and can be looked up.

Pricing Your House

Having got my house to a presentable state and having figured out what I think is a fair price, the next step is to advertise the house. Firstly a trip to a printer will give you a “for sale” sign. The next step is to get the house up online. There are numerous websites that will host your listing for a reasonable fee. There is no need for a professional photographer, a good mobile phone can take really top class photos. Before you upload your pictures however make sure you’ve looked at lots of other listings to see what kind of photos would appeal or repel a prospective buyer.

Put Together an Open House

As part of my advert I recommend you also organise an open house and print off a very simple brochure with details and measurements of the house and some background on the area itself as well. The main benefit of the open day is that you can organise all of your viewings on the one day and not be running around trying to fit them in around your life. Once that open day is done you may need to be flexible for any follow up viewings from serious potential purchasers.

After that, it’s a matter of letting the bidding begin. Don’t be too greedy; prospective buyers will go elsewhere if the price is too high. Remember as well that a cash buyer can close quicker and with more certainty then one in a chain. Selling without a realtor will stress you out a bit but there is no doubt the money you save can be put to a far better purpose.