Are you planning on buying a new home in 2016? It’s been projected that the sales of single-family homes are expected to increase slightly and so will the median price of homes, between three to five percent. Though this figure may change because of rising mortgage rates and fewer first-time buyers, next year will likely remain a seller’s market. If you’re planning on buying real estate in 2016, here are a few tips to remember.
Remember the importance of developing a budget and sticking to it. You may find a home you really like and be swayed to overspend, thus paying an inflated price. Such a move can make it considerably tougher to sell once prices stabilize or possibly drop. Also, make sure to prepare as much as you can before. Have an inspector ready to check out a property, have a pre-approval letter on hand instead of just the pre-qualification one.
There has been a considerable boom in building, which means builders aren’t necessarily guaranteeing that the people hired to build the homes are fully trained, resulting in the potential for something like inadequate plumbing, walls without primer, or the use of cheaper materials. Hiring an independent inspector is worth it, and make sure you do your research about the builder.
Always remember that the price tag of a home does not necessarily factor in the other fees involved in the purchase, like the origination fee, home inspection, the property taxes, appraisal, and more. When setting aside money for your home purchase, make sure to include these in your budget.