Move to Step 4
Selecting your home
There are so many ways to decide how to select your new home. However, the most important step is to set a strategy for your home purchase. In particular, consider your life goals and make the best estimate you can of the next steps in your life. For example, if you are single and buying your first home, do you want to buy a home large enough for today or one that could transition to your new marital home? Do you plan on aggressively working yourself up the corporate ladder and moving within a few years? Do you want a home that you can move directly into or do you prefer a "fixer upper" where you can maybe acquire a little equity in the home by doing some repairs, updating and remodeling? Is finding a home in the perfect school district the most important or is being close to work the most important thing to you?
Overall, take some time to consider these questions and many others before you start searching. In addition to these personal strategy matters, some of the major practical points for consideration are outlined below to help you evaluate what is best for you.
City or County?
An important fact to consider when evaluating a home is whether of not it is inside the city limits. Often, we can help you find a home that is very close to your work or other desired area without the additional burden of city taxes. Frequently, city taxes come with benefits (water and sewer at a monthly price), but there are many areas where you are inside the city limits with none of these options. In those cases, you are just paying nearly double taxes with nothing in return.
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For example, if you own a $300,000 home inside the city limits of Cary, your approximate annual taxes are $3,076. Outside Cary city limits, that same home's taxes would be only $1,844- an annual savings of $1,232 or about $103 per month. City taxes add up quickly.
"Sell - ability"
Yes, as crazy as it might seem, you need to think about how difficult the home you are buying today might be to sell in the future. This can include issues like location. For example, you can buy more house in Franklinton or Selma 45 minutes outside Raleigh, but will you find someone willing to buy it when you want to upgrade to a larger home later? Probably not. Will the cheaper home overcome your monthly gas bill and wear and tear on your car(s)?
Likewise, is that home you are considering buying on a major highway going to attract buyers with small children and families? Maybe you do not mind living with major power lines in your back yard, but consider most people do not like them. Buying a home in Cary or Apex will put you at the top of your range, but it will almost always sell quickly if you keep it in top condition. Of course, always be sure to check your commute time and do not rely on the mileage.
These are just a few of the factors you should consider as we investigatge homes. Our team is expereinced in the area and will help you consider all the positives and negatives of every home.
HOAs - Home Owner
Associations
Two major things to consider: Cost and Restrictions. First, monthly and yearly costs of Home Owner Associations need to be considered in your monthly payment. These monthly charges can be minor $5-10 a month or I have seen them as high as $300 a month. So, one of the first questions you should consider when finding a home with a HOA, ask - "how much is this going to cost me a month?" Secondly, pay careful attention to what the rules allow or more importantly, restrict you from doing on the property you want to buy. Limitations can be major and at times very surprising.
New or Used?
It is nice to step into a home where you are the first owner. Everything is new (appliances, carpet, paint and roof), but there can be risks buying a new home. Maybe the builder is controlling the prices and keeping them abnormally high or it is the perfect situation for you. Likewise, there are used (previously owned) homes that will fit you very well. Often, these homes are in more well established communities where you can better judge the long term quality of construction, how well the HOA is maintaining the subdivision and whether they homes will appreciate in price. Like many other decisions, it depends on your preferences. Let's talk though these concerns and make sure we get the right home for you.
National Builder Communities?
Be Careful!
There is a lot of mental attraction to buying a new home in a planned community from a large national builder (e.g Pulte, KB Homes, Centex, Meritage Homes and Ryan Homes to name a few). They work very hard to make them look nice and tell you how much square footage you get with them for this home. However, there are real risks that go with buying one of these homes. There are too many risks to list them all, but here are the top three.
First, they want you to use their contract. Why is this such a concern? As a NC attorney, I can tell you they are one sided and totally favor the builder - you as buyer have few (if any) remedies if things go wrong. What makes this concern worse, is they often try to keep you from using an agent that solely represents you. Why? They do not want you getting unbiased advice to protect you.
Second, they will want you to use their lender, attorney, appraiser, inspector, etc. to further maintain control. Again, this is a MAJOR red flag. Anytime someone is trying to keep you from getting independent advice, you should be very concerned. Often, they will offer $2,000 or $3,000 for you to use their experts and will characterize this as a "convenience" for you. It is not for you - it is for them. No one outside their control is looking at the contract, the property, the lender fees, the appraisal and the list goes on. Be careful without your own agent.
Third, these homes often are 'flat' in price increases for years. The builder manages sales prices very well during the initial home construction period because they control every variable. However, once you are the new owner and they are out of the subdivision, these new community values can stay at the original purchase price for years after they are gone. By leaving you with little or no appreciation, this is a risk you need to contemplate carefully.
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In summary, these can be good or very risky properties. Every situation is different. So, please take an expert with you, if you decide to go this route. We would be honored to help you in this minefield, but if you don't use us - please take a well educated Realtor with you. It costs you nothing, but can keep you from making a major mistake.!