Casey Reynolds

Cell 778-892-3717 | creynoldsrealty@gmail.com

How Much of a New Home Can You Afford?

 

If you’re thinking of shopping for a new home, one of the first considerations
is price range. You want to know what you can reasonably afford.
How do you figure that out?
First of all, you need to determine the initial out-of-pocket costs you will
need to cover. There are often more costs associated with purchasing a
home than its actual price. You need to take into account such additional
expenses as moving costs, legal fees, and a home inspection, not to
mention the costs of prepping your current property for sale.
Experts say you should budget 5-10% above the purchase price for these
items. So if you can afford to spend $470K on a new home, you should be
shopping in the $425-445K range.
Another factor to consider are the potential proceeds from the sale of your
current home. Your REALTOR® can help you determine how much your
property will likely sell for in today’s market. Any existing mortgage will need
to be subtracted from that amount to determine how much cash will be left.
Of course, you should speak to a mortgage broker or lender who can
compute how much of a mortgage you qualify for. Remember, qualifying for
a big mortgage doesn’t necessarily mean you should have one. You also
need to consider your personal finances and desired lifestyle – and whether
or not having a large mortgage is a good idea for you.
Once you have gathered all of your information, you can add any potential
sale proceeds to the amount of mortgage you qualify for, add other sources
of cash available for this purpose and subtract 5-10% for initial expenses,
and you’ll have an idea of the price range you should be considering.
Finally, it’s important to take the time to decide what kind of home you want.
Do you want a large backyard with trees? A quiet, family-oriented
neighbourhood? Four bedrooms and a finished basement? Once you
decide what you want most in a new home, it becomes much easier to find
one that’s in your price range.

 
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Have you ever driven up to a restaurant and your first impression was
disappointing? Perhaps the windows looked dark and gloomy, the façade
was worn and unattractive or for some other reason it just didn't look like a
tempting place to eat.
It could still be a fantastic restaurant – a real gem. But, your first impression
has soured your anticipation. If you still walk through the front door, it will
likely be with the expectation of being disappointed.
This scenario often plays out in the real estate market as well.
A buyer drives up to a home for sale and quickly forms an impression based
on what he sees "from the curb". That's why you'll hear real estate experts
talk about the importance of "curb appeal". It's one of the most important
selling points of a property.
If you plan to put your home on the market, you obviously want your home
to look as attractive as possible from the street. Fortunately, there are many
simple things you can do to improve curb appeal.
For example, you can trim shrubs and hedges, plant flowers, clean the
walkway and driveway, paint the front door and garage door, and clean the
exteriors of the windows. All these projects are relatively easy and
inexpensive. Yet, each can make a dramatic improvement to how your
home looks at first glance.
Don't be like the great restaurant that’s hidden behind an unkept façade.
Make sure your curb appeal reflects the overall value of your property.
Looking for more advice on selling your home quickly and for the best price?
Call today.

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