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The joys of home ownership

Jun 06, 2023 01:43PM ● By Holly Curby

Purchasing a home is much like enjoying the honeymoon phase. At first you are so excited about being a homeowner and envision all the happiness to come. Yet once the shortcomings of the home are revealed, the newness tends to wear off and suddenly experiencing the seasons of homeownership can become a daunting task.

When speaking with Carrie Gato, Big Picture Realty Incorporated team listing specialist at Keller Williams Realty, she said, “It’s important to have a trusted team of educated and informed people around you when buying a home.” Gato highlighted some of the key individuals who can help guide you every step of the way.

1. Realtor. This is the person you’ll have the most interaction with during your home buying process. They help you find the right home for your family, arrange home visits, negotiate your offer with the listing agent (sellers’ realtor), and hand hold you through the entire purchasing and closing process.

2. Mortgage Broker. Although there are a lot of built-in checks and balances to make sure that you are protected as a buyer of a home in the United States, a mortgage broker can help you work with everyone involved in the lending process in hopes of helping you get the best loan and close on time.

3. Real Estate Attorney. Not all states require that you have an attorney. In many cases, real estate attorneys work alongside your mortgage lender and can be essential for situations such as short sales. 

4. Title Company. If a real estate attorney is not required, a title company often will process the transaction for you. This involves running a title search on the property to protect you from purchasing a home with outstanding liens or mortgages against it, arrange a title insurance policy, and overall help provide services that protect you on your home buying investment.

5. Inspector. This person is crucial in checking out the physical aspects of the house and making sure that you know what you are getting into, i.e., foreseeable problems and expenses. This is a helpful step in negotiating the price, too.

6. CPA. A tax advisor can help you understand any tax implications of buying a home especially when it comes to specialized purchases such as investment properties and using gifted or business funds. 

7. Contractor. Depending on the results of the inspection, a contractor may be needed to complete any necessary work to meet requirements and/or provide fixing of physical concerns of the house to prevent further damage or expenses of such findings down the road.

With the lengthy process of buying a home, it’s no surprise that Housing Wire reports 75% of first-time millennial homebuyers admitting they’re overwhelmed by the process of simply buying a home, let alone once you get into it and all of the fixer upper things that need to be done. 

So, what are some things we can be aware of when it comes to contemplating buying a home?

1. Determine what works best for your time and current lifestyle. Moving into a newer home will most likely come at a premium cost, but there is often more predictability as to the costs involved (you shouldn’t have many major repairs for quite some time). Purchasing an older more established home (although it may align best with your budget) is sure to bring about repairs and updates in the first few years. Benefits may include increasing the value of that home down the road, but it will often include sweat equity. 

2. Be aware of added expenses involved in the purchase of the home. For example, if the home includes a Home Ownership Association fee (HOA), what will those fees cover, i.e., maintenance of the exterior parts of the home, utilities, and how frequently will the cost increase? If this is your first home you may be required to have new homeowner’s insurance.

3. Decide if you will use a real estate agent or buy/sell the home yourself. Gato advises to use a real estate agent as she said, “real estate agents have their finger on the pulse of the market…they help the seller to price the property competitively while preventing a buyer from overpaying (depending on who they are representing)…and they help you avoid pitfalls during the process that could be costly of time or money.” Gato also said, “They’ll have a great network in place for resources…and they’re going to be able to walk you through the process which is often very emotional.”

Once you step into that club of being a homeowner, depending on where you live, be prepared for some seasonal home upkeep. Better Homes and Gardens provides a great home maintenance checklist on their website (www.bhg.com/home-improvement/advice/home-maintenance-checklist/).

Some friendly advice? Create a file for your paperwork such as manuals, invoices, receipts and warranties, i.e., roof repair, window replacements, heating system parts, etc. According to Gato, when time comes to sell your home, buyers love when you can supply that kind of paperwork as she said, “It makes them feel really comfortable and good about moving forward with the purchase…and makes a realtor’s job a lot easier.” 

Other things Gato suggests for current or potential homeowners?

1. First impressions are often built on your home’s curb appeal. Provide nice landscaping—green grass with trimmed and manicured bushes. Don’t forget things like fixing chipped paint (especially the doorway to the front of the house), the appearance of the mailbox, even the small items such as house numbers. Pops of color can come in forms of potted or hanging plants.

2. If selling a home, work on decluttering so people can envision themselves living there. Focus on creating open spaces with natural light, i.e., opening or removing heavy curtains. “Many home purchases are created with emotion,” Gato said. “They’re going to make decisions based on what their life will feel like when they actually live in that home—and then they’ll justify it later with logic.” Price to sell as homes that sit on the market can be perceived as having something wrong with the property.

3. Be aware that in most cases, if you have lived in a home for less than two years and decide to sell, you’ll most likely have to pay a capital gains tax. 

4. If you are looking at purchasing a home, talk with a mortgage broker to learn how to improve your credit. Great credit often impacts your ability to get a lower interest rate which can save you a lot of money over the life of the loan.

Yes, there is a lot that goes into owning a home, but it can also be a great investment in your future and bring about many joys of home ownership.

Want to hear more about the ins and outs of home ownership? Check out Holly’s Highlights podcast, Season 2 Episode 25 on the Joys of Home Ownership with Carrie Gato. Holly’s Highlights podcast is available at www.hollycurby.com or wherever you listen to podcasts including Apple Podcasts, Google Podcasts, Spotify, Pandora, and even “Alexa, play Holly’s Highlights podcast Season 2 Episode 25.”λ