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Tips to Help You Find the Right Home to Purchase

24 March 2020

Cody Day

As you prepare to buy a home, you get items, such as your past tax filing documents and paycheck statements ready to submit for your financing. And along with financing requirements, you will also make a list of home features and amenities that you need in your future home purchase. Along with these important details, there are some additional situations you need to look at as you search for a home that you can afford with your current and future potential earnings. Here are some important tips to help you in your home selection and search for the right home for your needs this summer.

Consider Existing Market Home Prices

Searching for a home can be as easy as plugging in the right criteria into a real estate market search engine and scrolling through all the listing hits that come from your online search. And when you work with a real estate agent, they can further help you search for potential properties. But as you look at the home prices of each specific property, you need to evaluate the property along with its price based on recent home sale prices in the area.

It is the recent home sales that drive the price of the home you ultimately buy, and this is powered by the price that a buyer is willing to pay for a home. For example, when the market begins to slow and the number of homes for sale increases due to the lower demand, prices will fall as a result. When there are more homes for sale than there are buyers, you will be able to find a great deal on a home, especially if the seller has an urgency in their need to sell as soon as possible.

However, when there are fewer homes for sale and more buyers are looking, you might find you have to outbid another buyer as you both drive the home's price up more and more. This activity, in turn, increases the home prices of other properties, especially when your recent home sale is figured into the calculations of a comparative market analysis.

Look at a Rental Property

If you are struggling to afford local real estate prices, you can always consider the option of buying a rental property as your residence. This does not mean you have to buy an apartment building, but you can, in fact, buy a traditional single-family home that has a basement income suite.

When you own a property that has a separate income suite in the basement, upstairs, or next door, as in a duplex, your tenant will help you out financially. Be sure as you acquire a property with income potential, keep a savings account of any extra rental income you have, as there may be times you are not actively collecting rent. For example, when your tenant moves out at the end of their contract and you have not found a new tenant replacement.

Learn more about homes for sale in your area by contacting a real estate agent.

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