Many buyers as they begin the start of their home search, jump to price, and usually point out to me that “that seller only paid ‘xxx’ amount of dollars for the home. My response is, “how wonderful that the sellers have made money on their home and I hope you do as well.”
“Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”
There are so many things that could impact your purchase, not just price. Take into account what the seller has spent on maintenance. For example, over the last few years, I have replaced my HVAC system, roof, a few appliances and the water heater. I also replaced the countertops and sink in my kitchen, that was 7 thousand dollars (its a beautiful white quartz). Did you just do the math of what I just put down here? Those items can be expensive, and remember, owning a home means paying taxes, home insurance (you have rental insurance already) HOA fees(possibly) and yearly maintenance. As a buyer, don’t jump on how much money the Seller has made over the years, look deeper at what they have invested as well and remember you are buying a home not only because you OWN it and can basically do what you want, within reason, but you are looking for your money to appreciate in that investment as well. Its ‘forced’ savings. I have a friend who over the past three years has spent over 40,000 dollars in rent..and he has nothing to show for it except a one bedroom apartment. He has the downpayment for a home…..personally I think its not a smart economic move. Interest rates are so low right now.
Ok getting back to what I was saying, when I do a price suggestion for a seller’s home, I incorporate a percentage of costs, for the updates and upgrades, the sellers have done into that suggested price. To sellers, if you are going to do cosmetic updates, do them early so you have time to enjoy them- call me, before you do spend those funds. I am happy to make suggestions as to what will or won’t work.
When buying a home, remember there is a list of factors that affect that purchase, not just what the seller paid of it. Lets talk about your real estate needs.
Contact Sharon and Let’s Get You Moving!