Dallas Home Appraisals News and Information

With historically low interest rates, home prices lower than they've been in years, and an $8,000 tax credit on the table through December 1, 2009 for first time buyers, many renters and those still in "starter homes" are wondering if this is a good time to buy. Since we're in a near perfect-storm in terms of home buying, the wild card is certainly the economy and whether or not you as a buyer feel good about your job security or prospects during the next few years. As you consider what is right for you, there are a few things to think about when considering the true cost of home ownership.

The expenses of owning a home includes more than just your monthly mortgage payments. You will also need to figure in property taxes, homeowner's insurance, homeowners' association dues (if applicable), maintenance and repairs.  Depending on your loan, you may be required to "escrow" your property taxes and insurance, meaning instead of paying it yourself, you will send extra money each month to your lender to cover these costs and they will make the payments.  Your monthly tax and insurance costs could equal your mortgage payment.

The size, age and condition of your new home will impact how much money you will spend annually on repairs and general maintenance.  It is hard to find a consensus, but figure on needing anywhere from 1-3% of your home's market value for a newer home, and as much as 20% for a home with a large lawn, landscaping, pool or other higher-end amenities, each year to put toward maintenance and repairs.  For more about the monthly expenses associated with buying, click here.

As you consider the costs, also remember that there can be substantial financial benefits to owning a home.  A "rent vs. buy" calculator can help potential new homeowners figure out if now is the right time to buy.  Prospective tax deductions of mortgage interest and property taxes, the value of your property over time versus likely increases in rent over the same period, and the cost of a downpayment and obtaining a mortgage are some of the factors to be considered.  There are also emotional and lifestyle considerations including how long you intend to live in the home and if you have - or are thinking about starting - a family. 

Once you've taken a look at the benefits of owning a home and are realistic about the costs, you may find that you can't afford not to buy now.  If you are planning to own your home for several years, investment in real estate is still an excellent way to build wealth by building equity.  For the right buyers there are some incredible opportunities out there right now.  Just remember - it's your money and your life - you have to understand exactly what you are buying and exactly what it will cost you in order to budget appropriately and get the most out of your home and your investment!  Blue Star Appraisals Inc. can put you in touch with real estate professionals who can help you determine if now is the time for you to buy - contact us today!