If you're thinking about buying a house in Columbia SC , you're not alone. According to the New York Times, more Americans are getting home buying fever; home prices have seen the biggest increase in the past seven years over the past month alone. And with mortgage rates now creeping up, it seems even more people have been knocked off of the proverbial fence and are thinking about buying a house in Columbia SC .
There are a lot of questions you need to ask a lot of people. You might already have a list of questions to ask your real estate agent to make sure you're getting the best deal. But you also shouldn't forget the hard-hitting questions to others, too, from the previous homeowners to the neighbors, and even yourself.
7 Questions to Ask When Buying a House in Columbia SC
#1. Is Renting vs. Buying a Better Option?
Depending on your situation, you may not be ready to buy, may need some time to save for a down payment, or may live in a more expensive housing market. If you have a lot of debt, a low credit score, or don't have much money saved up, renting may be a better option. Someone with these factors may have to wait a few more years to be in a better financial situation before they are able to obtain a mortgage loan.
#2. What is the Neighborhood's Crime Rate?
This is not complicated and doesn't need a lot of explanation. Find out what the crime rate is in the neighborhood you're considering BEFORE you sign to buy a home there.
#3. What Are My Home 'Needs' and 'Wants'?
No property is perfect. What are your 'deal breakers' vs. your wants. Where are you willing and able to compromise? The point here is to have a shorter check-list of "must-haves" when looking at potential homes.
#4. Where is the Seller's Disclosure?
Find out from the listing agent if there are any seller disclosures (known defects or problems) before you make an offer. NEVER catch yourself buying a house in Columbia SC (or anywhere else for that matter) without seeing a complete seller's disclosure notice.
#5. What Home Inspections are Available?
Like #2 above, this one is not complicated. Have any home you're considering thoroughly inspected before you buy, including checking the chimney, sewer lines, and drainage inspections. If you look at your dream home on a sunny day, how do you know how things go when you're experiencing a ton of rain? It's worth the bit of extra time, money and effort to make sure you won't have costly problems down the line.
#6. When Was the Last Time the Home Had a Mold Inspection?
Mold can be a health hazard causing anything from itchy eyes to permanent lung damage. Make sure the house is free of mold by asking, "When was the last time this home had a mold inspection?" Finding out when there was a mold inspection enables you to see the home's history and determine if you want to proceed with making an offer and securing a mortgage loan for the home. If there is mold present, it will also help you determine how and by whom it will be taken care of.
#7. Why is this Columbia SC House for Sale?
This is an obvious but often not asked question. "Why is the seller selling?" Knowing why someone is selling may help you decide how to structure your offer.
Obviously there are far more than 7 questions you need to ask before buying a house in Columbia SC , but this list covers some of the most overlooked questions people just don't ask for one reason or another. Be sure you cover all your bases.
Before you consider a Columbia SC lease option, you should be aware of how it works, who benefits and the many things that can go wrong.
In a Columbia SC lease option, you rent a property at a cost slightly above market rate. Prior to moving in, you agree on a potential purchase date and purchase price for the home. You may buy the property at any point during the rental period up until the lease option expires. The lease option period can be any length of time that you and the seller agree to, ranging from several months to several years.
If you do end up buying the property, the seller will usually credit part of your rent back to you, usually more than the portion of your rent that was above market rate. You can put this money toward a down payment and closing costs, or keep it. The purpose of the above-market rent is to give the seller an incentive to complete the transaction. If you do not buy the property, all of the rent you paid remains with the seller, giving the seller an incentive for taking the property off the market during the time you were renting it.
Columbia SC Lease Option Benefits to Buyers
The biggest reason a rent-to-own agreement appeals to buyers is financial. If buyers don't yet have the down payment or the monthly income to qualify for a mortgage but believe they will within the next couple of years, a lease option allows them to accelerate the path to homeownership. By signing a contract now, the buyer locks in a purchase price, which means no worrying about rising home prices. Don't be surprised if, in this rapidly appreciating real estate market, the seller of a lease-option property wants to add a clause to the contract allowing for the price of the home to increase with the market.
Columbia SC Lease Option Benefits to Sellers
The biggest reason a seller would want to enter into a lease-option agreement is also financial. They may be having a hard time selling, and rent would at least help cover the cost of the mortgage, property taxes and insurance. A seller is also assured that a lease option tenant would take care of the property, since they hope to one day own it.
Columbia SC Lease Option Pitfalls
A Columbia SC lease option doesn't always work out. Before entering a rent-to-own agreement, a potential buyer should:
Check the seller's credit report. Look for potential warning signs that the seller is in financial trouble, such as delinquent accounts or a large amount of outstanding debt. If the seller balks at allowing you to check his/her credit, proceed with caution. Even after a satisfactory credit check, a potential buyer who currently lives in the home should still pay attention to any warning signs that would indicate the seller is in financial distress. Some examples include phone calls from debt collectors and suspicious-looking notices that are sent to the house.
Even an iron-clad Columbia SC lease option agreement won't hold water if the lender forecloses on the property you intend to buy because of financial distress. If the seller loses the property, you, as the potential buyer, loses the possibility of buying the property and forfeits the extra rent paid. In addition, you will have to find a new place to live.
Make sure you have a lease option agreement, not lease purchase. The former grants the option to buy at any time during the rental period,while the latter requires purchase by the end of the lease period and has legal ramifications for backing out.
Ensure that your Columbia SC lease option clearly states who is responsible for various types of maintenance or repairs. This agreement should also specify the types of changes or improvements (if any) the potential buyer is allowed to make to the property during the lease term.
Understand that a seller can refuse to sell at the end of the lease option period. This means that all the above-market rent money you've paid will be lost. A seller may also try to back out of the contract if the real estate market has appreciated rapidly and the property significantly increases in value. Of course, neither of these actions is legal, but if the buyer doesn't have the financial resources to hire a lawyer, there won't be much recourse against a shady seller.
Understand that should the market declines, the buyer will still have to pay the higher price stipulated in the contract to own the home. However, if the price is too high, the lessee can just walk away and shop for a different property. However, the buyer will lose that portion of the rent that would have gone toward a down payment, so it's important to do the math necessary to determine whether walking away is the best option.
Make sure you can buy the property. It is possible that you won't qualify for the mortgage loan required to make the purchase at the end of your lease option period. Finding this out before entering the agreement can save a lot of grief down the line.
While Columbia SC lease option arrangements can have many potential pitfalls, they can be a win-win situation between a trustworthy seller and a prudent, financially responsible buyer. If you can find an arrangement that you can agree on and a house that you'd like to own one day, this could be the perfect way for you to step out of your apartment and put down some roots.
Talk to us about other potential problems you could run into with a Columbia SC lease option. We'll be happy to discuss this method of home ownership with you.
Buying a Columbia SC home has become increasingly more difficult in this tight market we've suddenly found ourselves in. Given the current low-inventory environment, it may take longer now than it would in a balanced market that has enough homes for sale to satisfy the current buyer demand.
To prepare yourself for buying a Columbia SC home in this market, be it your first home, or a move-up home, plan to look at every new listing that even comes close to satisfying your wish list. Accept the realism that you most likely won't find everything on your wish list. Successful buyers are willing to make sacrifices. Just make sure to make intelligent compromises.
According to Gallup, nearly seven in 10 Americans between the ages of 18 and 29 don't currently own a home, but plan to make the big purchase within the next 10 years. With that many first time homebuyers coming into a market that is already short on supply, one can only guess what this might do to the future of available housing inventory.
Buying a Columbia SC Home – Become a Pricing Expert
When buying a Columbia SC home in a low-inventory market, it's vitally important to become an expert on local pricing. Follow up on every listing you liked and find out how much it sold for and how many offers were made. We can provide you with this information. This way you will know when a listing is underpriced, priced close to market value, or overpriced for the neighborhood. The lower-priced properties tend to attract more buyers. If you've educated yourself about local market pricing, you can distinguish between a listing that is underpriced and one that is fairly priced.
You'll save yourself a lot of time and disappointment if you don't make offers on underpriced listings that attract five or more offers, particularly if you can't go much higher than the list price.
When buying a Columbia SC home — based on your pricing expertise we'll help you obtain — your financial capabilities and how close the house matches what you want will help you make an educated decision about whether to make an offer.
One major factor you must include in your pricing education is finding out how much work a particular listing will need after you buy it. Factor this information into your "affordability equation." A listing priced at $400,000 that requires $100,000 of repairs isn't affordable if you can pay only $450,000 at the most.
Buying a Columbia SC home can be a test of one's patience, but not if you have your own agent on your side. Having an exclusive buyer's broker on your side of the transaction will give you more confidence in your home buying decision. Try to find someone who is an exclusive buyer's broker to represent you when you purchase your next home.
2013 could be your lucky year for buying Columbia SC real estate. People who are either buying their first home or are moving up to a more expensive home are likely buying at a historically opportune moment.
Two Markets Governing Buying Columbia SC Real Estate
1) The housing market and 2) The bond market.
The housing market’s effect is obvious. If homes have increased significantly prior to purchasing a home, it’s likely that future housing price gains won’t be as great. But, if homes have dropped significantly in price, it stands to reason they will increase in the coming years.
The bond market impacts interest rates. Houses really have two price tags. One is the cost of the home itself and the other the cost of borrowing to buy that house. Obviously, the higher the interest rate, the more interest one will have to pay over the life of the loan.
It just so happens that right now, both of these price tags are marked as “Reduced!”
Columbia SC real estate prices plummeted from 2006 until 2010. They haven’t gone up much since 2010 until recently when home prices have begun to move higher.
Mortgage rates dropped like a rock after the financial crisis of 2007 and 2008 and remain near all-time lows.
So, when historically low home prices meet historically low mortgage rates – what do you get? You get a very affordable home, and a great time for buying Columbia SC real estate.
People should make the decision to purchase a home based on how they want to live their lives rather than as a purely investment-driven decision. But when the economics match up with one’s life – it’s a great opportunity!
If you need help deciding whether ’13 could be your lucky year for buying Columbia SC real estate, contact us for a free, no-obligation consultation on buying Columbia SC real estate, and whether the time is right for you and your family.
We have a lot of Homebuying Tips listed for you under the Columbia SC Real Estate Categories to your right.
When looking for a Columbia SC home, it’s important to see beyond paint colors and decor that may not be your taste and, instead, focus on the floor plan, structural design and other physical elements of the house. Replacing carpets or changing light fixtures are typically simple and affordable changes you can make once you move in. But if certain areas of the residence require repairs, like the foundation or the roof, purchasing a property could become costly.
Don’t let the fear of having to pay for repairs deter you from buying a Columbia SC home, though. In some cases, Columbia SC home sellers may be willing to pay for repairs if it will help them close the deal and sell their property. Here’s how to ask:
Reasonable Requests for Columbia SC Home Buyers to Make
There are certain types of fixes that are generally OK to ask Columbia SC home sellers to take care of before you, as a buyer, agree to purchase the home. Getting a home inspection is a must. Once this is complete and specific parts of the home have been identified by an inspector as needing essential upgrades (electrical wiring, for instance), you can approach the sellers to see if they would be willing to pay for the repairs.
Conversely, it is not acceptable for home buyers to make non-essential requests for fixes in a home for sale. This might include asking the seller to paint the house simply because you prefer a different color, or making other aesthetic alterations.
Timely Requests
In addition to making appropriate repair requests, it is also important for home buyers to petition fixes in a timely fashion. Making requests days before closing may halt a home sale altogether, as the sellers may not be willing to alter their agreement at the last second. This means you will want to ask the sellers to upgrade certain parts of their home early on in the negotiating process.
In certain circumstances, Columbia SC home sellers may be willing to pay for home repairs after the sale is complete. To ensure the sellers follow through on their intent to do so, you might want to hire a lawyer to draw up a contract stating the seller’s intention to make the fixes within a predetermined period.
Decide What You Can Live With
There is a chance your Columbia SC home sellers may be unwilling to pay for repairs. You should determine how willing you would be to accept the home as-is, without repairs paid for by the sellers. If the majority of the home is in quality shape (make sure the defects won’t impact your ability to get insurance on the property) and you like most features, you just might want to worry about making fixes after the sale goes through.
The key to approaching Columbia SC home sellers about repairs? Communication. For more home buyer tips, check out our other Columbia SC Homebuyer Tips under Columbia SC Real Estate Categories to your right.