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My First Place: Lessons Learned
Seven My First Place homebuyers admit their biggest rookie blunders and reveal recession-proof lessons to guarantee home buying success
By FrontDoor.com | Published: 10/20/2009
Falling home prices have made some homeowners wish they had waited longer and paid less when buying their first place.
Lesson #11: Real estate is not a recession-proof investment
In the past few years, housing prices have taken a hit across the country. Adam and Becky, first-time homebuyers from Phoenix, Ariz., learned this first-hand. Since they bought their home a little over a year ago, homes in their neighborhood are now selling for half of what they paid, leaving them disappointed that they didn't wait a little longer to buy their first place. However, no one can predict exactly where the housing market is going. It's important for homebuyers to realize that if you're emotionally and financially ready to be a homeowner, it's always the right time to buy.
Learn More: Stop Procrastinating, Buy Now! >>
In the past few years, housing prices have taken a hit across the country. Adam and Becky, first-time homebuyers from Phoenix, Ariz., learned this first-hand. Since they bought their home a little over a year ago, homes in their neighborhood are now selling for half of what they paid, leaving them disappointed that they didn't wait a little longer to buy their first place. However, no one can predict exactly where the housing market is going. It's important for homebuyers to realize that if you're emotionally and financially ready to be a homeowner, it's always the right time to buy.
Learn More: Stop Procrastinating, Buy Now! >>
Lesson #12: Examine both financial and personal costs of buying
Buying a home can require you to make tough personal sacrifices. After adding up the cost of their mortgage payment, HOA fees and other monthly expenses, Becky realized she would need to quit school and get a job so she and Adam could afford their house. While Becky is happy with her decision, if they had saved more money she would have been able to stay in school. Before buying a home, think about what kind of personal and financial sacrifices you'll have to make. If affording a home is a stretch right now, it might be better to wait awhile and save up more money.
Learn More: Questions to Ask Yourself Before Buying a Home >>
Lesson #13: Read HOA documents before closing
Reading a big stack of papers may seem like a huge hassle, but carefully reviewing your HOA documents is important if you want to avoid unpleasant surprises down the road. Eight months after they moved into their home, Adam and Becky learned that their HOA dues were increasing by 5 percent. If they had read their HOA documents, they would have known sooner and been able to prepare. Before buying a home in a community with an HOA, read through the covenants, conditions and restrictions (CC&Rs), bylaws and budget and look for anything that could affect you in the future. Also, talk to residents in the neighborhood and get opinions on how well the HOA does its job.
Learn More: What You Need to Know About HOAs >>
<< Lessons 8-10 I Lessons 14-16 >>
Keywords: home, house, real estate, buy a home, first-time homebuyers, My First Place, HGTV, tips, advice, inspection, down payment, offers, neighborhood, financing, loan, mortgage, home improvement, renovation