We often make our best efforts in life to buy a home since it is the most valuable asset that we can purchase in our lives. We spend a lot of money in home purchasing which include agent fees, closing costs, mortgage payments and so on. Dc Fawcett says that we also put in lots of efforts and time in hiring real estate agents, researching the internet for various things, home inspecting and so on. But, truly are we all completely satisfied with our homes after we buy them? The answer to this question is a big no but why does this happen even after spending so much time, efforts and money.
Well, this happens since we take some things for granted for instance: we may not research the neighborhood of the new home ourselves since we entrust the real estate agent with that responsibility and we overlook some things. We don’t concentrate on certain aspects of the home and end up dissatisfied after buying it. In this article, Dc Fawcett Reviews the various regrets that home buyers have after they buy.
They find that the home is too big or small
People don’t plan for the future: for instance: when people get married, they purchase a single BHK house initially but when they have kids in the near future say about in 4 to 5 years, then they find that the house is too small and too cluttered. They deeply regret buying the home and feel that they could have bought something bigger. So what is needed is basic planning and if people plan to have kids, they should settle in for bigger houses. The other scenario is when people find a house too big. A single BHK is enough for two people especially if they don’t want to have kids. When they purchase a big house, they find that they don’t use most of the rooms later. Both these situations lead to regrets on the part of the home buyers.
They find the neighborhood unsuitable
People don’t often research a neighborhood by themselves and this is the reason why the end up finding the locality unsuitable later. There have been instances where people from the cities find a suburb to be unsuitable if they cannot walk with ease outdoors. Why don’t people conduct researches? This is because, they entrust the real estate agent with this responsibility and sit back. But, a real estate agent may not be honest always and his main aim may be to sell the home and he ends up overlooking such things which may seem small to him. Another reason can be that real estate agents don’t understand exactly what you are saying. So, people must go to the locality, talk to locals, visit the nearby supermarket or parks and roam around it to discover every flaw and plus.
Commuting is too much
After they buy a home which looks so beautiful and perfect in every sense, buyers realize that they have to commute too much. This means missing out on kids and their activities like school days, playing classes, homework and so on.
Dc Fawcett Reviews the Disadvantages Of Buying A Home:
In the millennial generation, many want to be proud homeowners. Equity, pleasure, satisfaction, comfort, stability, rental income, asset and so on are included in the bevy of bonuses that come along with home ownership. To know more on the advantages of home ownership, read Dc Fawcett’s article on the same. (Dc Fawcett discusses the advantages of buying a home). However, home ownership has its own cons. In this article, Dc Fawcett Reviews the disadvantages of buying a home.
Costs associated with owning a house are large
Buying a house is very expensive and you need to have proper planning for that. You have to save heavily to make down payments initially. Then you have your monthly mortgage payments. You have to pay taxes, home inspection costs, survey costs, closing costs and so on. You may have to pay accumulated homeowner’s insurance and property taxes for a couple of months initially. On top of these, you have to shell out home association dues in the beginning. Whereas, you may just have to pay a security deposit initially and then pay monthly rental payments for renting. It works out much cheaper compared to buying a home.
Much more responsibility
If you buy a home, you have a greater responsibility. You have to take care of maintenance and repair works. You have to be a part of the home owner’s association and if you belong to a multifamily home, you may have to contribute to all social and developmental activities of the home.
Moving out is tough
If you are a home owner, moving out from a locality may not be easy. You have to find someone to manage basic operations of your home in your absence. Or you have to find tenants for leasing and tenants are not easy to find at short notice because they will bargain on rent, taking advantage of this short notice duration. You may have to compromise on the rent and face a loss. If you are not going to return back and move out permanently, then you have to sell your home. Selling your home is a big job and again involves a lot of time and effort. On the other hand, as a lessee, you just have to contact your landlord or write a letter, collect your things and get ready for the move. If you are a person who travels a lot and are getting transfers often, it’s better not to go in for home ownership.
When you miss out on monthly mortgage payments and cannot do anything about it, your home is likely to go into foreclosure. Foreclosed homes are sold at a much lower rate than they were purchased. Foreclosure affects your credit rating, depresses you psychologically and results in loss of sweat equity. If you choose to sell your house by yourself, then you will have to sell at a much lower price than the market value as it is an emergency.
Dc Fawcett Reviews – Advantages Of Buying a Home:
Many people value home ownership a lot. They are proud to be the owners of a home. They take loans and save to make initial down cash payment. There are many advantages to buying a home. In this article, Dc Fawcett VREIC discusses the advantages of buying a home.
Sense of achievement in owning a home
People often feel great pleasure in buying a home. The feeling that “it is mine” is great. They can paint it, clean it and alter it the way they like. They can blow a smoke, cheer up with a drink and have their favorite dog as their companion. It is the best emotion in this world.
The prices of homes tend to appreciate. Even though the Federal reserve of United States of America tends to keep the interest rates low, inflation is likely to come about soon. In fact the housing costs inflate at a faster rate than the interest rates. When the inflation breaks out, the homes will sell at huge prices and home owners will make huge profits. The rental incomes from these homes will magnify.
Home owners have to pay property taxes and monthly mortgage payments. These get deducted from the annual taxable incomes.
Better health, immense satisfaction
This is obvious is it not? Home owners feel a high amount of pleasure and an immense amount of satisfaction. They have a higher interest in their neighbors and socialize better than rental counterparts. They feel that they are going to spend their entire life time in the home and establish good relationships. This happy life makes them more healthy and prosperous.
Have a greater sense of duty
They take higher interest in the affairs of the home like security, maintenance and so on. In a multi family home, it is often the home owners who come down to meetings and volunteer to help in resolving common issues.
Children of home owners grow up to be smarter
This is a psychological factor. Children of home owners tend to acquire better skills. When they live in their own homes from childhood, the urge to own a home when they grow up develops in their young age. They tend to acquire better skills wanting to excel in their dream profession. They also tend to excel in studies. The parents of such children also elevate their job oriented skills to a higher level since they need sufficient money to pay the mortgages. These skills get shifted to their kids also. But it may turn out to be the other way. Such children may think that they already have a home and will become lazy. But on the positive side, they tend to be active and smart.
The Problem of Pricing a Home too High – Dc Fawcett:
An ordinary seller will have some discussion with the real estate agents with regard to selecting a specific sales price. When you are having more finance at your disposal then there are more financial opportunities for you as a property owner. The seller can be in a situation wherein he can purchase an expensive property etc. But ironically, sellers who are not told anything about the sales price generally select the listing agent who tells them the highest list price.
In the real estate deal what is of great importance is the notion of the buyer who extends an offer. DC Fawcett says Pricing a home involves various nuances and you have to compare similar houses, following market trends etc. As a whole you should have a well-studied opinion.
Problem in high Pricing :
There is no such specific price tag that can be attached to your home. You should make a well-studied guess; the market will suggest the price.
The properties are sold at a price a buyer is ready to expend on and a seller is ready to accept. There are only few hurdles while pricing a home too low; the seller will get several offers to take the price to the market price. But the problem is with pricing the home too high. Agent selection should also be done prudently.
When it comes to deciding on the appropriate selling price of your property it is not simple. However, it is one of the crucial elements to determine if you require a sensible sale at an optimal value. Some sellers will be in the path of not considering the market and commence with a higher sales price. This is not the judicious choice which will cause stress to the home owner at the later stage.
Now let’s see some of the problems sellers may encounter when they overprice their property.
At present, several buyers face online search problems with regard to their home search. There are real estate sites that pave way to visitors to key their criteria. When the search results show overpriced home, you eventually come out of this.
When your property is overpriced you will be in a situation where there are incremental price slumps. However, you will not keep in pace with the market.
If there are no prospective buyers in the following months you are expending some considerable sum. You can have very well avoided this if your home had not been overpriced at the outset itself.
You need to take great care of your property so that it is ready for display. However, there is an exception when you vacate your house before placing it on the current market. The more time the home is on the market the maintenance adds up and gives stress.
So the need of the hour is to avoid overpricing your house, which can be also be done in following ways:
When an agent gives a higher number when compared to others then you have to exercise due diligence. The agent will be doing so simply to get the deal. An efficient agent will not instill wrong hope and give wrong opinion.A Competitive Market Analysis can be got from the agent.
Deposit on home purchase:
You may think that buying your dream property is as ideal as signing a contract along with the owner and eventually giving the down payment. But the actual scenario is that you have to prove that there is “earnestness” attached to the buying of the property. Well what is the earnest money deposit?
This deposit is a portion of the down payment. This shows the buyer’s interest to implement the agreements that is set forth in the contract. An escrow account will take care of the deposit. This escrow is a form of trust fund that is managed by both the parties and has effect till you close the transaction.
Now let’s see some of the important aspects of an earnest deposit:
- As soon as the purchase agreement is signed the buyer and seller will make deposit payment. This check or money order is then kept aside in an escrow which is maintained by the specific real estate brokerage. There are strict laws from the state regarding the dealing of these monies. It should be made clear that this money should never go in the hands of a broker through his business bank account.
- Just as you are careful in getting a receipt for any financial transaction it is essential to ask for a receipt, for the earnest deposit which would be provided to the real estate agent.
- With regard to the question of how much earnest amount one should pay, it has lot of variations. Having said that, different states have their legal limits for the earnest money. In case of a purchaser who can pay only less down payment he has to spend lot of earnest deposit. This is as a surety that he or she will get through a mortgage.
- Generally the experts feel that the earnest money can be somewhere between 2% to 5%. This percentage is calculated from the purchase price. But again the actual money depends on the thriving of the market.
- In case the purchasers decide on paying a large chunk as earnest deposit the lender will be interested to confirm the source of these monies.
- One important thing to be kept in mind is that the earnest deposit is not in any way an additional expenditure of purchasing a property. At the time of closing the deal it will be added with the down payment.
- Earnest deposits aren’t simply some random money paid. These sums enunciate the earnestness of the buyer and show that they are capable of carrying out their promises as per the purchase agreement. The real estate transaction conveniently commences with the earnest deposits that safeguards the seller in case the purchaser gives problems in the specific deal.
- You would be investing some money in your bank account. Similarly an earnest deposit will provide you with interest through its escrow.
Here are reasons why renting is better than buying: – Dc Fawcett Real Estate
Home ownership is one important element for every individual. Everyone dreams of owning a home. There are some people who have achieved this dream. Since time immemorial, families either involved in developing their own properties or renting it. There are some upfront expenditure involved in buying a property. So the youngsters commence their life by renting a space. DC Fawcett In the long run when they are in a financially stable condition several individuals go for buying a property.
The home ownership rates are influenced by some socioeconomic forces. However, deciding upon the appropriate time of purchasing a property is dependent on us and it requires thorough diligence and consideration. This is not same with all the markets.
Though renting may seem to be a good choice by some, let’s look at the advantages and disadvantages of both buying and renting your properties.
Pros of Buying:
The equity is enhanced with the passage of time. Also you can improve your property’s value through prudent investments. The curb appeal is also one factor that should be considered while improving the value of your home.
There are many tax benefits specifically laid for homeowners. But again every property owner is not eligible for these benefits. Homestead exemption, Federal Tax Deductions are some of the tax benefits.
You can even make your home as a source of income through renting the property. But here it is important that you adhere to the local tax laws. Renting out the whole property or part of the property must be decided.
You are provided with some choices and there is freedom in implementing these choices. However, you should ensure that you don’t violate local building codes. You can do any updates as far as you don’t break homeowners’ association rules.
Cons of Buying
When there is depreciation in the property it leads to financial loss at the time of selling the property.
There will be some uninsured maintenance costs to be carried out in your home. You are supposed to meet them.
There is the negative of huge upfront costs in case of buying a property.
Pros of Renting
When you are a renter you don’t have to expend for home maintenance costs. You needn’t pay when things such as pipe bursting happens. You just have to inform the landlord.
Unless things see a steady way renters generally opt for renting. You can easily relocate for the sake of your work.
Due to the frightening aspect of foreclosure several individuals are not inclined towards buying. But in the case of renting, the individuals need not possess a mortgage that is greater than the property’s value.
There is a fixed sum set for the lease agreement’s time period in case of renting. Generally, the landlords will inform about the increase in the rental amount beforehand itself.
Cons of Renting
There is not the benefit of equity enhancement. A standard lease agreement doesn’t give you the chance of building your equity.
- The renters do not get any federal tax benefits.
There are chances of the landlord increasing the amount of your rent when the present lease comes to an end.
These are just some of the regrets that of home buyers that Dc Fawcett Reviews here and there are many more.