Should you take the leap into home ownership?

There are many people sitting on the fence wondering if and when they should try to buy a home.  The last 3 years has been pretty scary with the high unemployment rate and soft market.  We all know someone for whom the American Dream and become a nightmare.  So why would I want to buy a home in the Treasure Valley?

The first is that the prices are very low.  Most of my buyers are getting very good deals and paying less on their mortgages then they are in rent.   I am getting people into comfortable starter homes for about $600/month with mortgage, insurance and taxes.  The rental values of the homes are around $900/month.

The second would be that you are paying your mortgage not the landlords.  I am a landlord as well as a real estate agent.  My taxes are double what a homeowners would be since I do not get a property tax exemption.   I need to pass that to my tenant to break even.  Your landlord is probably not getting rich.  I bought when the market was higher and lose a little every month on my 5 units.

Third the house is yours and you don’t have to ask anyone if you can have pets, paint, etc….

my pet

Forth I still believe in the American Dream of home ownership.  We take great pride in owning our own home.

Fifth mortgage rates are very low.  You still can get mortgages with very little down.  Call me and I will send you to a good loan officer with many products.

Sixth I think the market has hit bottom.  I could be wrong but houses under $125,000 that are nice are getting multiple offers and the sold price is often higher then the asking price.  This is a sign of turning market.

Well there seem to be a lot of reasons to buy a house.  But the question would be is home ownership right for me?  Why shouldn’t I buy a home?

First if your job isn’t stable or you think you might have to move in the next couple of years (and you don’t want to be a landlord) home ownership might not be right for you.

Second you have lousy credit and cant even manage your cell phone bill…You have things in collection.  Your debt to income ration is very high.

Third  you want someone else to take care of the repairs.

Forth you never have any money left over at the end of the month.

What if I am not sure what I want to do?

The first step would be to contact a Realtor (like me) or a loan officer.  We can explore the market and whether you qualify for a loan.  Then you can weigh your options with more knowledge.

The second step would be to discuss it with your significant other and some friends.  This is an important decision and you need to weigh the options.

If you decide to proceed your Real estate agent and your loan officer (unless you have cash or can find an owner carry)  form the start of your team.  We are professionals.  Other real estate agents hate me for this but I do not recommend signing the buyers representation agreement until I am sure that this is the agent I want to work for.  I usually have my buyers sign one when we are ready to bid on a house.  Others might want it signed sooner.  If you are in the low end of the market (under   $100K) be prepared to bid fast and be competitive.  (the market has changed).

Buying a home is an exciting but somewhat stressful time.  Home ownership is not for everyone but it the right choice for many people My greatest pleasure as an agent is handing my buyers the key to their first home.


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