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Advantages of Buying a Home

buying a homeBuying a home is often referred to as the “American Dream.”  While there are many obvious benefits of owning a home, there are also some that are not so obvious.

1-Stable Monthly Payments

If you choose a fixed-rate mortgage, then your monthly payments will remain mostly the same, which is one of the best benefits of owning a home. When renting a property, there is always the unknown if the monthly payments will increase each year when you renew your lease. Consistent monthly payments that come with owning a home can provide some peace of mind when it comes to creating a monthly budget. Of course, monthly payments can change when owning a home if property taxes or homeowners insurance change, but the amount of change in property taxes is typically a very small amount.

2-Opportunity to Build Equity

The longer that you own a home, the more you pay towards the principle balance of your mortgage.  As the balance of the mortgage lowers, and hopefully the value of the property increases, the larger the equity!

3-Cheaper Than Renting Overtime

Undoubtedly, there are many associated when buying a home, such as the down payment, appraisal fee, and homeowners’ insurance.  The upfront cost to buy a home is substantially more than just paying monthly rent to a landlord. Yet, over time, owning a home is cheaper than renting which is a great benefit. In Arizona, if you compare a rental property and the monthly mortgage of a comparable home, the cost of ownership is typically much less.

4-Owning a Home Provides Tax Advantages

Paying taxes is a necessary evil, but a great benefit of owning a home is the tax advantages that it provides.  Arguably the biggest tax advantage of owning a home is the option to deduct paid monthly interest from your tax returns. If you’re unsure how owning a home will impact your taxes, it’s recommended that you discuss it with your accountant so you fully understand how owning real estate will impact you come tax season.

5-Build Your Credit

There are many factors that impact a person’s credit score, one of the most important being the length of credit history.  Since the length of a mortgage is typically 15 or 30 years, having a mortgage on your credit history is a great way to lengthen the average of your credit accounts.  In addition to improving the average length of credit accounts, each and every month that a mortgage is paid on-time it shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.

Owning a home is much more than just having a place to live. Give me a call when you’re ready to become a homeowner! 602-329-7782

First Year of Homeownership Tips

phoenix homeAre you a first-time homeowner feeling more than a little confused about what you need to focus on during the first year of your home owning experience? Have you just bought a home for the first time in a long time and need a refresher on what this first year might bring? Either way, you’re in the right place! Despite sometimes being overwhelming, buying a home is an exciting experience! Once you are handed the keys to your new house, you may find yourself at a loss for what to do next. Should you dive right into remodeling? Should you save money? Below, are a few of my tips for the first year of homeownership, whether this is your first experience or you’re a pro:

Wait a While on Remodeling
Some professionals recommend waiting at least the first year before you worry about any remodeling in your home. Depending on your situation, this may not be practical or necessary, but you should wait at least six months until you’re settled in your new home and have decided for sure what you want to focus on with your remodeling budget. Your tastes and popular trends in home design may change quickly, so it’s best to “sleep on it” for a little while before making such big changes.

Fix Little Problems
While big projects can wait, if you notice small issues around your home, take care of them before they get out of hand. For example, if you notice your dishwasher makes a strange noise during one of its cycles or that your garbage disposal has quit working, take care of these problems as soon as possible. You never know when they could lead to something more significant that’s going to take a lot more money and time to fix.

Make a Budget
This is great advice for anyone in any situation and any walk of life, but it’s especially true for new homeowners. Make a budget and try your best to stick to it. This way, you’ll be able to put aside plenty of funds for savings that can be used at a later date to get started on those remodeling changes and DIY projects, too. And this will also mean you’ve got some extra padding in your budget for those inevitable times when a major appliance gives up without warning or a storm knocks down your fence.

Are you considering selling your home?  Get started with this free home value estimate.

New vs Pre-Owned Homes

phoenix home for saleWhen it comes to making a decision between buying a newly constructed home and buying a pre-owned house, the first thought that is likely to strike the mind of the prospective buyer is location and price. While price may be a factor in any business transaction, there are other things to look out for when purchasing real estate. Let’s take a look at the benefits and disadvantages of buying a new home from a builder vs buying a pre owned home from a private seller:

1. Location of the home

Pre-owned home (Pro): This is one advantage of owning a pre-owned home. Most pre-owned homes are situated in already established areas with access to schools, banks, and other social infrastructure.

New home (Con): Most newly constructed homes are built in locations outside the main city area. This is because of the fact that most of the main city area is already occupied, and the only available space for new buildings are on the outskirts. While this might be a good location for some people, however, it implies that you’ll have to commute every day to places like schools, office, and shopping malls.

2. Availability of new features

New home (Pro): New homes are built based on the latest designs and feature the latest technology. Most new homes come with more amenities and appliances which are seldom found in older homes.  However, you are getting a blank canvas in the backyard and you’ll be expected to landscape the front of your home within a short period of time

Pre-owned home (Con): An older home lacks some of the latest technological features of modern smart homes. This might be an issue for some people who are tech-savvy.  Depending on what the buyer is looking for, some homes may need remodeling, new appliances and other updates.

3. Ease of acquisition

New home (Pro): Buying a newly constructed home is easier than buying a pre-owned one. It takes a shorter period of time in searching for and concluding the acquisition of a new home than it is for an old one. However, most builders estimate 9 months to complete a home. This may work for your advantage if you are trying to sell a current residence and need some extra time to prepare financially.

Pre-owned home (Con): Buying a pre-owned home involves some extra steps before the deal is final.  These homes need to be inspected for infrastructure, termites and may be in need of some crucial improvements. Some sellers might be resistant to complete repairs or reduce the sell price to compensate the buyer for not fulfilling that request.

4. Renovation and repairs

New home (Pro): As a brand new house, there is almost nothing needed to be fixed in it as everything is still “fresh.” Hence, there is virtually no need to start making repairs or renovations in the house. This also means that you don’t spend more money after finally buying the house. Homes are 100% move in ready and don’t need renovations.

Pre-owned home (Con): A pre-owned home might need some major repairs, new appliances, floors and paint. This means that you’ll have to put in more time and money in restoring the home before actually moving in.

5. Pricing

Pre-owned home (Pro): Since old homes have already been previously occupied, the cost of buying them will be lower than getting a brand new home. There are exceptions though, as pre-owned homes in reputable high demand neighborhoods will still carry huge price tags.  However, the price of the home includes established landscape, possibly a pool and window covering.

New home (Con): With all the amazing features and technology fitted in a new home, the price just has to be more expensive.

Whether you are buying a new or pre-owned home, always have a real estate agent represent your interest.  Let me how I can help! 602-329-7762

New Home Community in Peoria

New Home Community in Peoria

So I was out with these buyers last weekend and they started asking me about what new home communities are available in Peoria, AZ. (As opposed to Peoria IL or Peoria, CA) Funny because I had just visited a brand new subdivision just off Deer Valley Rd in 85383. It has 219 total lots, but is already 65% sold out. However I had snapped a few pictures while I was there.Peoria New Home

This community has homes from $365,000 up to $557,000 with the size range from 2,200 sqft up to the big dog 6 bedroom floorplans with 5,674sqft. They are all a minimum of 10,000sqft lots with RV gates and they are allowing RV parking (first community built in the last 15 years to allow RV parking in this area of Peoria).

Call me if you want a new home community tour, I’ve got about 6 communities we go through in a 2 hr period. 602-329-7782

Or if you’d like to look at others… Click here to see these and other New Homes in Peoria