Is it your dream to buy a Columbia SC fixer upper and turn it into a home of your own? While the idea may seem like a good one, there are a few things you should think about first.
Five Reasons To Turn Your Back on That Columbia SC Fixer Upper
Structural Issues
There is a difference between things that won't cost a lot of money and things that will. There is a vast difference, for instance, between replacing kitchen cabinetry and ripping out moldy drywall. For first-time home buyers with little DIY knowledge, cosmetic issues are easy to learn how to fix. Structural issues, on the other hand, will require expensive contractors and months' worth of time and lots of money.
Time
Speaking of time, ask yourself how much of it you have to devote to your Columbia SC fixer upper and how long you can live in a house that's half torn apart.
If one or both of you is able to dedicate 40 hours a week or more to fixing up your home, you can get things completed fairly quickly. If you plan on working your regular job and muddling around the house on weekends, you'll be living with the mess for longer than you expect.
DIY
Do you know how to replace wall studs? Can you tear off and put on a roof with the help of a few friends? If you can, then a Columbia SC fixer upper might be a great idea. If you can't, however, your Columbia SC fixer upper can quickly turn into an expensive nightmare. Don't fool yourself when it comes to your own skills. Painting a wall is different than putting in a dropped ceiling. Refinishing a counter top is different than replacing one. Know your limitations and make sure you aren't getting in over your head on this project.
Money
If you purchase a true Columbia SC fixer upper, you'll won't get away with making repairs for less than 10 to 20 thousand dollars. Many people make the mistake of getting estimates and tacking those costs onto the price of the home to come up with a desired loan amount. It is virtually a guarantee that unexpected expenses will arise. If you sink all of your money into your loan, where will you get the extra money you need for renovations? Also consider that at some point in time, you'll run into a project that you simply can't complete on your own. The contractor that you’ll need to hire will expect to be paid.
Divorce
It may sound extreme, but you will be surprised at how many relationships break up over something as simple as a house. Home buying is stressful enough. The money and time spent on the ordeal is enough to test the resolve of any couple.
With your dream home Columbia SC fixer upper, pressure skyrockets. If your relationship is on shaky ground, avoid a fixer upper at all costs. If your relationship is rock steady, be sure to take the time to discuss choices, money and responsibilities ahead of time. Having a game plan can ease the burden of such a major life event.
If you have the time, money and energy, a Columbia SC fixer upper can be a dream come true. You can get a house with good bones that you can turn into your own. On the other hand, a fixer upper can be the worst move you’ve ever made. Before you decide to buy a home that isn't quite inhabitable, consider whether or not you're really ready to take on the stress and tasks of getting your dream home livable again.
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.
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.
Buying Columbia SC real estate in 2013 is likely to be very tricky for home buyers. Here’s why:
The number of homes for sale fell to a 13-year low nationwide in January, leaving would-be buyers chasing a shrinking supply of homes just before the spring selling season.
The Columbia SC real estate market is clearly rebounding, but not because prices are crazy. It’s simply the old rule of “supply and demand” kicking into high gear. Buyers outnumber the available homes for sale in the Columbia SC real estate market.
The same problem is facing buyers on a national level as well. There was an average of 4.8 months of supply of existing homes for sale in the fourth quarter, according to the National Association of Realtors (that is, it would take 4.8 months to sell off the inventory at the current pace). Six months’ supply is closer to normal. In 2010, the supply of existing homes was as high as 10 months.
Prices are starting to rise as a result of the strong demand relative to low supplies in the Columbia SC real estate market, with prices still about 30% below their peak. Reasons for the slim pickings aren’t good news. Lenders are taking their time putting bank-owned properties on the market, in part to keep prices up.
Sellers are waiting until prices rise before listing their homes for sale. Nationwide, about 11.9 million homeowners are still underwater, according to estimates from Moody’s Analytics. When you’re underwater – that is, owning more on your mortgage than the home is worth – you’re much less likely to list your home for sale.
Strategies for Shopping Columbia SC Real Estate in 2013:
Stay Calm in a frenzied market. Don’t get caught up in the hype and think you have to have a certain house because you may not find another one. Be conservative, and be willing to wait.
Make your best offer. If you find yourself in a bidding war, you need to make your offer stand out. Be prepared to make the best offer. The danger is in overpaying, but in a rising market, when you look back 5 years from now, you’re not going to be as concerned that you may have paid $5,000 over asking price to get the house you want now.
Pre-Approval is a must. In the competitive Columbia SC real estate market that we’re in, buyers need to have a pre-approval letter in hand before even starting to look for homes. Be prepared for a stringent underwriting process. Lenders want to see a consistent income stream. And a gift or funds transfer must be well documented. One benefit to a pre-approval is that it sets a price limit on your home shopping. There’s no sense falling in love with a place you can’t afford to buy because you can’t get approved for the loan.
Make a large down payment. When making an offer on any Columbia SC real estate, bringing more than 20% down to the negotiating table will make your offer more competitive. Sellers know the more you bring to the table, the less likely there will be a bank problem.
Find a good agent. An experienced real-estate agent may alert you to homes before they come on the market. Plus, if your agent is respected, that can help you stand out with the seller’s agent.
Buying Columbia SC real estate this year can be a challenge. Stick with these tips when you’re starting out, and you’ll be ahead of the game you’re competing in. For more information on buying Columbia SC real estate, check out our other articles in the Columbia SC Home Buying Tips section under Columbia SC Real Estate Categories to your right.