If you have ever been confused by the jargon, regulations, or culture of the real estate market, don’t feel bad— it happens to all of us. There are so many different things to consider when trying to make a real estate transaction that it is understandable to be confused. However, we can’t just shrug this confusion off and continue on our day, at some point most of us will be involved in some sort of real estate transaction so it is best to have those questions answered now. Some questions that we will cover today are things like how home prices are set, whether you should include appliances in the sale of your home, and so on and so forth. If you have ever asked questions like these then you are in luck. However, if we don’t cover your question today, please give us a call. We here at the Hughes Group are happy to answer any questions you may have.
How are home prices set?
The pricing of a home can be a bit complex at first glance, so for an outsider to price a home would be very difficult. That is why there are really only 2 people that you should listen to when it comes to the price of your home: your real estate agent and an official appraiser. You see, your real estate agent and an appraiser are trained and understand all the little nuances that can have drastic effects on the price of a house. An appraiser’s word on the price of a house will have much more leverage in a negotiation however because of their greater training in that area. A real estate agent, like one from the Hughes Group, that takes their job seriously will do what they can to price a home correctly. Besides, most potential buyers hire an appraiser before they head in to make a final offer on a house to make sure they aren’t overpaying. Not to mention, your real estate agent will do the appraisal for free. The appraiser, not so much.
When the real estate agent or appraiser goes in to assess the value of a house they will look it all up and down and take note of a number of important factors. Some of these factors include age, size, location, condition, appearance, property, etc. They will then take all that information and compare it to the rest of the market at the time to give you an estimate on the value of your home at the current time.
Should I include appliances in the sale of my home?
This question has, unfortunately, no clear answer. It is all dependent on your circumstances. In some circumstances, you would only include a few with the house, and then in others, you might just leave them all with the house. So really, the answer is wide open on this. We’ll try and give you a few ideas of when you should do what, though they won’t be a definitive guide.
First, we need to talk about appliances in general and figure out what in our house is an appliance and what is not. Most people consider the washer, the dryer, the fridge, and the dishwasher to be appliances, though, really there are much more. Some of the appliances that a lot of people forget include mounted microwaves, stove/oven combos, furnaces, and air conditioners.
The appliances most likely to be left behind when you sell a home are the furnace and air conditioner, the stove and oven, mounted microwaves, and the dishwasher. These are left because they are hard to move properly and also because they are usually built into the home. However, if you have bought a special oven/stove that you want to bring to your new home then you can do that of course, just make sure that your real estate agent knows that you plan to do so.
The rest of the appliances are usually taken with you from house to house unless there is a special reason. For instance, if the fridge matches perfectly with all the other appliances and the counters and the flooring you should consider selling it with the house.
When is the best time to transition from renting to owning?
Let’s start off with this important question. The choice to buy a home is one of the most impactful decision you will ever make, so it is very important to make it wisely. There are three factors that we usually look at when someone is considering buying a home and those are finances, location, and space.
Finances are the bedrock of home buying. Homes are expensive so most people choose to get a mortgage through a bank or other lender. If you are serious about buying a home you need to make sure your finances are up to it. A home will, in most cases, cost you more a month than a rental would after you factor in property taxes, utilities, and so on and so forth. So, the first thing you need to do is to schedule an appointment with a loan officer or other authorized representative of your chosen lender and have them look over your finances. They can give you a good estimate of what you can afford.
Location is the next important thing to consider. Location is everything when you buy a home. You need to know where the houses you can buy are located so you can evaluate whether you want to live there. For instance, ask yourself these questions: how far is it from where I work? How far is it from the people and places I like to visit? And how far is it from the places I shop and go for entertainment? These questions will help you to know whether a place is right for you.
Then there is the issue of space. Not having adequate space is frustrating and uncomfortable. Now, you must realize that just because you need more space does not mean you should go buy a house. Houses are expensive, as we have addressed before, and it is a decision that needs to be made carefully. If space is really an issue you may consider simply renting a larger unit. However, if space is an issue and you have the finances to buy a home then you should certainly look into it because, as you will see in a moment, there are pros and cons to living in a house, but the pros outweigh the cons.
Now, like we said, when it comes to buying a home, there are some pros and cons just like with renting. For starters, when you own a home you have more control over what happens to your property. If you want to change out the sink or a toilet then you can do that. You don’t need anyone’s permission (unless it needs a building permit). You are also building equity when you buy a home. However, you also buy a huge liability when you buy your home, a liability that you don’t worry about in an apartment.
There are so much more things that we could talk about when it comes to real estate, but we can’t talk about them all in a single blog post. So, if you need any more information about real estate, especially real estate in the Boise area, give us a call today. We are happy to answer any of your questions.