Owning a home is something that everyone should aim to achieve. It has several major benefits that people who rent homes do not find. According to Ezarik, M. (2005), there are six major benefits. First, there are tax deductions. Real estate taxes paid for a first home as well as a vacation home are completely deductible for purposes of income tax. Two, homes are seen as a safe and steady investment, with their values rising while their debt drops. Three, the share of property that is owned actually rises over time. And what’s more, buying a first home usually leads to buying an even better second home. Four, there is increased borrowing power, in that equity can be used to obtain a line of credit or to secure a loan. Five, bought homes provide stability. Renters usually have no idea of what they will be paying in a few years’ time, while in contrast, home owners with fixed-rate mortgages basically have the same payment for even up to 30 years.Â And six, buying a home gives a person freedom that is impossible to find in a rental house, like being able to choose what color to paint on the walls as well as not getting fined for getting scratches on the walls. In order to successfully purchase a good home, and not regret the decision afterwards, there are several things that the potential home owner, or owners, should know and do.
First, the potential home owners should know if the time is right for them to buy a house and move. According to Vitt (2004), there are four factors that influence this choice. First of all, there are personal factors, in that moving challenges people’s feelings of being in control, security and identity. It taxes their emotional and physical stamina as well. Secondly, there are social factors, in that moving disrupts everything that is socially familiar concerning a person’s life. It can make one grieve about leaving their family members, neighbors and even friends. Third, there are tangible factors, as Moving rearranges everything that is physically familiar in a person’s life. And fourth, there are money factors, as moving could mean financial uncertainty unless a person has planned in advance and has the resources. One should therefore be financially, emotionally and physically ready to move. Irwin (2009) also supports this topic. He says that the best time to buy a home is when it is the holidays specifically the winter holiday as people usually focuses on other things like buying gifts. Another perfect time is when the prices are rising, since one will likely ride that wave to much higher equity values. Vitt adds that there are six essentials of a proper, strategic decision. One, the person should decide among priorities. Two, one should assess their financial picture, of the present and future. Three, one should adjust their priorities. Four, one should set goals. Five, one should turn these goals into a specific action plan. And six, one should adjust and reset these goals and plans as is necessary.
Second, planning is very important. Persinger (2007) addresses this topic. He first quotes an old saying, that â€œif a man knows not where he is going, then any road shall take him there.â€ He suggests that before buying a home, a person should sit down and then evaluate the difference between their wants as well as their needs. He elaborates that one way of doing this is by getting a piece of paper, and then putting one’s wants on one side, and one’s needs on the other side.
Third, there is the choice of picking between a condo, a town house and a single-family home. According to Kimmons, a condominium is one part of a group of housing units such that each person owns their own individual unit space. All the people in the dwelling share the ownership of areas that are of common use. The walls are normally shared, but that isn’t necessary. The biggest difference between condos and single homes is the fact that that there is no individual ownership of the land. Single family residences are defined as detached homes that usually include both a front and back yard, a driveway as well as an attached carport or garage. Most townhouses or townhomes are multiple story dwellings. Handley (2009) writes in his article about the differences between condos and town houses. To him, the differences in these two types of houses are substantial as well as important. He says that condos and town houses appeal to different age groups as well as different lifestyles. Older buyers value the ease of the single-level living that is in condos. On the other hand, younger buyers prefer the privacy and the space of a town house. Handley interviews Marie and Glen Wood, who describe a condo as being more like an apartment, since it has a lower ceiling than a town house, only one parking space, lacks a basement and may not include garage parking. On the other hand, they describe a town house as offering more privacy, being more spacious and having a back yard as well as a cement patio. Bolder (2009) describes the main benefit of a single-family residence as being its re-sale value, which is normally the highest of any single family home. Bolder further says that single-family homes are the best for people who like their own space, modifying their home, maintaining their surroundings and building their house. Town houses are ideal for people who like their own space but don’t have to deal with exterior maintenance, don’t mind close neighbors and are okay with small yards. And condos are ideal for those people who don’t want to do any exterior repairs or maintenance, like amenities and do not mind having very close neighbors. This topic is therefore important as it shows what sort of house people should go for, and the factors determining it.
Fourth, once a person has identified a home that he or she wants to invest in, then they should make an offer. According to Realtors, a proposal should include both the price and the terms. And in some cases, these terms can constitute thousands of dollars in additional value for the buyers. The terms are quite important and must be carefully reviewed. Irwin (2009) also has a view on this. In his opinion, a potential house buyer should learn to negotiate with sellers in order to bring down the initial cost of the house, as the seller will almost always ask for more money than they are willing to take for these homes. The buyer should start by bidding low, or â€œlowballingâ€, though not so low as to make the seller think you are not earnest in buying the property. The lowball offer can be as low as 25 per cent, as it is usually just a test offer. If the seller gives a counteroffer, compromising between the their last offer and your initial offer may just land the deal. The compromise offer, however, is more preferable, as it’s higher than the lowball offer, but is still far lower than the amount the seller is asking for.
Finally, from the above points, we can come to the conclusion that there are many steps involved in buying a house, and most of them do not even involve the actual buying. With the above tips, however, it should be possible for a person to make the correct choice when they feel that it is time to buy a house.Â