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When deciding on your next home, you want nothing short of perfection. While some may interpret your high standards as being challenging and overly particular, this home will not only be a financial sacrifice, but it is, hopefully, where you will be spending the foreseeable future with either your family or your spouse.
Since perfection is unattainable, you may need to adhere to the guidance of your loved ones and bend on some of the non-negotiable components you had originally placed on your “dream home” list. While it is important to be flexible and accommodating with some of your demands, there are certain circumstances where you should consider walking away from a home sale, no matter how right it may have felt while you were completing the tour of the home.
It is likely that you will experience hurdles during the homebuying process, but not all problems are created equal. Some, with a little problem solving, can be easily addressed and eradicated. Some problems, however, could be so significant that attempting to resolve them could be more detrimental than simply walking away.
How do you know when you should walk away from a home sale? If any of these 3 scenarios happens to you, protect yourself and continue looking elsewhere:
1. Major issues are revealed after the home inspection.
The individual selling the home is going to want to highlight only the positive aspects of the property. That is why you should never rely on their word alone. When purchasing a new home, it is imperative that you demand a home inspection. These inspections could bring to light underlying issues that were not mentioned during the tour of the home. If there are problems that need resolved, make sure to get quotes on what it would cost to have everything fixed.
2. The title search is not clear.
During any real estate transaction, there needs to be a title search done. This will reveal if there are any other claims on the property. If there are and they have not been brought to your attention, it could mean trouble for you in the future. You could end up having to deal with a boundary dispute or be forced to answer to someone else’s debt.
3. You offer more than what the house is appraised for.
If the home is appraised and it comes back being lower than what you offered, you will end up paying more both upfront and once everything is all paid off. If the seller is unwilling to lower the price to meet your offer, it is not going to be cost-efficient for you.
Originally published on David Taran’s website.
As you get closer to owning your own home, you can finally start to solidify the details of what this move will entail. This means, specifically, deciding on the location of your new home. While you may already be aware, the sad truth is that owning a home is rather expensive, especially for millennials who are currently facing unideal housing market trends. According to the Case-Shiller Index, home prices have been at a high for over 31 months now.
While it may be a financially restricting time to be a first-time homebuyer, that isn’t stopping millennials from making the conscious decision to progress beyond renting. SmartAsset recently published an article that outlined where the best cities for new homeowners are and why millennials should consider opting for one of these locations:
The entirety of the United States was surveyed and Pittsburgh was deemed the best city for first-time homebuyers. They have one of the best selections when it comes to affordable housing options, which is exactly what new homeowners on a budget are looking for. Pittsburgh is also a city whose population doesn’t grow very rapidly, which means that you won’t have to deal with overpopulation.
Oklahoma City, Oklahoma
While Oklahoma City may be a bit cheaper than Pittsburgh, they have a more elusive housing market, which is what hindered them from surpassing Pittsburgh as the most ideal city for new homebuyers.
One of the benefits of Omaha is the fact that homebuyers are more likely to get loan approval as compared to other cities across the United States. Since 2011, the cost of buying a home has increased, but the other incentives that come along with Omaha’s housing market are enough to keep it a desirable option.
There is no city in the United States that has experienced a real estate boom quite like Indianapolis. They have seen such a rapid expansion in the number of homes being built and placed on the market that it’s evident that new homebuyers would have a significant amount of options available to them if they chose to pursue Indianapolis as their new home base.
Deciding on the location of your new home is an intimidating decision to make. But this decision becomes even more daunting when you are committing to a home where you plan to raise your family.
Will you raise your family in the city, surrounded by the constant stimulation and energy of city life where everything you need is within close proximity to your home? Or would you prefer to raise your family in the suburbs, where everything is more spacious and your family has more breathing room?
Or perhaps both options sound appealing to you and you are more concerned with the financial cost of city life weighed against the financial commitment of the suburbs. There is no right place to raise a family, so make the most informed decision based off of your personal preference, as well as with your monetary confinements in mind.
City Living Vs. Suburb Living
The closer you are to the heart of a major city, the higher the cost of living will be. Living in the city can be expensive, but depending on the location and the specific home you are looking at, living in the suburbs also has the potential to become very costly.
In their 2017 Cost of Living Report, it has been estimated that, on average, it is over $9,000 more expensive every year for a family to live in the city than it would be for them to live in the suburbs.
The difference in cost when it comes to the even larger cities is even more substantial. New Yorkers, for example, pay over $71,000 more to live in the city, and San Franciscans pay around $12,000 more to live in the city rather than the suburbs.
However, that doesn’t imply that suburb living is unattainable for families on a budget. If you are an avid city dweller, there may still be ways for you to live in the city with your family while still being mindful of your monetary restrictions. There are smaller cities in the United States where you can build a home for your family and yourself without afflicting your financial future. For example, a family can live in San Jose and only spend $1,628 more than if they would live in a surrounding suburb.
Ultimately, the decision to raise a family in the city or the suburbs is a personal choice that is completely dependent upon where someone feels the most comfortable. If cost is your major concern, please keep these price differences in mind as you begin the search for the perfect home and area to raise your family.
Originally published on David Taran’s website.
Have you ever considered getting involved in property management? Because property management can seem like such foreign territory, many individuals are unaware as to whether or not property management would be a suitable fit for them.
Property management can be a very daunting responsibility to take on, especially because the hours and effort that are consumed by managing a property are not always guaranteed to yield profits for you. Before you make the decision to pursue property management, it’s important to first ask yourself a few questions to determine whether this would be something you would entertain for an extended period of time after you start distributing energy into it:
1. How would you handle consistent maintenance calls?
Tenants are not going to be as concerned as much with the time of day as they will be about reaching out to you when there is a leaking faucet or a light that has burnt out. Being a property manager means that you make yourself available to your tenants whenever there is an issue that needs addressing. The hope is that they will be respectful, only engaging with you during the day. But because some of them may be gone for most of the day, or have inconsistent sleeping patterns, you may occasionally be faced with a midnight phone call, forced to quiet a distressed tenant.
2. What is your protocol for selecting renters?
The quality of your tenants will directly impact your role as property manager. If are being selective in your choice of tenants, paying attention to every answer they give in the interview process, you will be able to weed out problem tenants. If you are only offering up rental properties to tenants who will be mindful and respectful in regards to their rapport with you, it is going to make your job more tolerable.
3. Do you know what to do in the event of a legal issue?
You have most likely heard horror stories from other property managers concerning tenants who either initiated legal action or had to have legal action taken on them, but these stories are not as common as they may seem. There is, however, the possibility that there may be minor issues that arise (environmental disasters, security deposit disputes, etc.) that will require some sort of legal action and you need to be prepared for how to deal with that.
4. What is your strategy for filling vacancies?
As a property manager, you ideally want to make a profit at the end of the day, but there are unpredicted issues that could arise that could cause you to lose money. The most common – and expensive – expense concerning property managers is vacancies. It’s imperative that you have a plan set in place for how to avoid vacancies altogether, or at least lessen the amount of time between each vacancy.