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While your first home purchase is an exciting and stressful time, if you make a few decisions before you start to look it will make the process easier.
How long do you plan to live in the home?
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
The length of time that it will take to cover those costs depends on various economic factors at work in the Daytona Beach area. 5% appreciation per year is not unreasonable, but to earn that, you should plan to stay in your home at least 3-4 years.
How long will the home will meet your needs?
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, you could quickly outgrow the space. Therefore, those buyers should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.
How is your financial health?
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? Generally, a couple of blemishes on a credit report will still qualify you for the lowest interest rates. But, if you have more than a couple of late payments, you may have to pay a higher interest rate and fees.
Where will the money for the transaction come from?
Typically homebuyers will need some money for a down payment and closing costs. If your credit isn't stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender - and to a seller.
Have you totalled the ongoing costs of home ownership?
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in a planned community, a monthly homeowner's association fee will be required.
All of these decisions may seem intimidating, but I know the area and the market here in Daytona Beach. Contact me with concerns or questions.
Sherry Armstrong
Daytona Beach Area Buyer Specialist
386-679-3191
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