See our listings if you're ready to start your search.

Still thinking?

Here's some information to guide you in making the best decision for you and your family. If you don't feel like reading, just contact me and I can answer any of this for you.

WHAT ARE THE ADVANTAGES OF BUYING A HOME?

Despite recent slowdowns in some markets, housing remains a good long-term investment.

• Over the past 30 years, home values have risen more than 6% annually.
• On average, the value of a home nearly doubles every 10 years.
• Sixty percent of the average homeowner's wealth comes from their home's equity.
• The average homeowner’s net worth is $171,000 – that’s nearly 46 times that of a renter’s, who has an average net worth of $4,800.
• Homeowners benefit from the power of leverage. At an annual appreciation rate of 5%, a 10% down payment on a home will return 94% after 3 years. After 5 years, the rate of return increases to 225% and after 10 years, 623%!

CAN I GET FINANCING?

Financing is available! See our section on Understanding Financing for a more in depth look.

• For buyers who qualify for conventional financing, mortgages are available at near historically low rates. Take a look at these statistics.
• More than 9 out of 10 recent home buyers financed at least part of their home purchase.
• The Economic Stimulus Act of 2008 has raised the 2008 FHA limits to 125% of the area's median home sales priced, not to exceed $729,750. Because they can be sold on the secondary mortgage market, loans that meet the conforming limit come with lower interest rates than those that do not, making mortgages more affordable for many.
• According to National Association of Realtors research, the increased conforming loan limit will result in more than 300,000 additional home sales and strengthen current home prices by 2-3%.
• FHA programs are a viable alternative for many first-time buyers. FHA market share for home purchases is expected to triple over the next three years, from an estimated 4 percent in 2007 to an estimated 12 percent in 2009.

IS THERE SUCH THING AS THE PERFECT HOME?

Probably not. You are more likely to find a home with the elements that are most important to you and make improvements over time or sacrifice some less important things.In finding the home most perfect for you, there are many variables involved.

• Lifestyle
• Budget
• Schools
• Parking

…just to name a few.

Let's go over some important things to consider to
make an well-thought-out-informed decision.

TYPE OF STRUCTURE

Each type of property (single-family homes, condominiums, multiple-family homes, etc.) have advantages and disadvantages. One type may be much better suited to your situation than another. This chart will help you think ahead at what property will best fill your needs.

Advantages Disadvantages Single-Family Home You can modify or improve it as you wish. Some improvements can increase the value of your home, some may serve only to improve your lifestyle. You are responsible for all interior and exterior maintenance. Depending on the type of structure, can be more or less work than others.   Re-sale value is generally the highest on single family detached homes. In most areas, single family homes are more expensive than townhouses or condominiums and can cost more to maintain.   With no adjoining walls to neighbors, you will have more privacy and quiet. Neighbors can hurt your property value and quality.   If there are property management fees (Homeowners Association), they are generally lower than condominiums and townhouses. Can have association fees and restrictions. This has it's advantages but is more restrictive. Condominium You are responsible only for the interior. The exterior maintenance and lawn care is taken care of by the condo association. Association fees can sometimes be high and can increase with time.   Condominiums often offer amenities (pools, play areas, tennis courts, parking, etc.) you may otherwise not be able to afford. You are dependant on your association for keeping the property in good condition.   Condominiums are generally more affordable (purchase price as well as insurance and property taxes). You share walls with neighbors reducing privacy.

LOCATION

This is a big one. Things to consider? schools, amenities, commute, style…

Our section on Middle Tennessee Communities has a wealth of information on many important elements involved in deciding what area is best for you. It's always a good idea to drive through different areas to get a feel for it.

BUDGET

This is without a doubt the most critical thing to consider. Although relocating is a lot of work, repairing you credit and getting out of bad financial situation is, by far, harder. Make sure you are not stretching your budget too thin. Don't forget things like home insurance, property taxes, maintain, and always leave room in your budget for the unexpected. Make sure you are protected and have a backup plan if your financial situation changes unexpectedly. We've provided a variety of Mortgage Calculators to help you get an idea of what you can afford.

Getting pre-approved for a mortgage loan will help determine how much you can afford. This will also move the home-buying process along much faster. If you're like me, once you've found what you want, waiting is the last thing you want to do. There are many resources out there to help you in this process. Make sure to consider things like utility deposits and moving expenses.

NOW THE PAPERWORK...YUK!

Don't worry. It doesn't have to be painful.

The Offer

If you are going to make an offer to buy a home, your need to know how it works. An offer is just an offer. However, if the seller accepts, you are suddenly a party to a legal and binding contract. That means this offer needs to be written properly. It also means that you must be wiling and able to honor the offer if accepted. If the seller presents a counter-offer, you have the right to decline. It's important to set an expiration date as well as inspection and financing contingencies. There are too many things to list. This is one of many reasons to have a Realtor® help you through this process.

Negotiating the deal

Now that you're ready to take the plunge it's time to talk about how to get the keys in your hand. The goal is for both parties to walk away happy. That's not always easy. In fact, I'd say it's an art. This is where we will see things come to a screeching halt or end in a party.

1. Understand the process. The key is to find the place where the buyer and the seller are both comfortable. Until that is accomplished there will be times of possible discomfort. Set your mind to find the happy place and don't get sidetracked with emotions. Not all offers end in a contact. We will keep working at it until we reach our goal.
2. Consider both positions. Remember this is someone's home. Leaving may be emotional, maybe they'll do anything to get out. Either way, just know that they may not want to do repairs or changes you feel need to be done. The important thing to consider is, if you want to risk not getting into that house. They may sell the house to someone whose wiling to take it as it is and sometimes for more money.

Should I get an inspection?

There is always the possibility of hidden problems. A reputable professional inspector will uncover things like mold, radon gas, termite damage, leaky roof, foundation problem. Some of these things can be costly and can change the safety, habitability or value of the home. The cost of the inspection ($200-$500) is small in comparison to the savings of finding these things out too late. In most cases, you will have the option of withdrawing your offer or the seller will make any repairs needed.

It can also be a good idea to get a home warranty. A home warranty covers the repair or replacement of some major and minor items and components of a house. This will cover items not covered by your homeowners insurance such as HVAC, plumbing, electrical, water heater and appliances and typically runs for 1 year. It is most often included in a brand new home (recommended) but may not be as important in other homes less than 5 years old. Since many items covered in a home warranty are most problematic at 5-15 years, a warranty may will be a more important issue in a home aged from 5 to 15 years.

How to pay for it?

Unfortunately, this is fairly involved and definitely a critical decision. See our section on Understanding Financing to get a better understanding of what's involved.

Insurance

You'll want to shop around for the best policy. Maybe you have a company you already trust. Still, here are a few things to consider (among other things):

• Value - replacement or repaired
• Deductible
• Premiums
• Restrictions (pool, trampolines, fence, etc.)

You'll need to show proof of insurance at the closing.

Ah. Finally to the Closing.

Get your pen ready! There are a quite few documents involved in transferring the property.

The closing is where it all comes together and you get the keys to your new house. It’s important to make sure all the details are correct before the day of closing. Generally you should have your own closing agent handle your portion of the closing since it’s their job to look out for your best interests. Your Agent should look things over also. However, the fine details of title insurance, financing, etc. should be verified by your closing agent. One thing often overlooked until the last minute is Homeowners Insurance. It’s best to take care of this early on so you can find the best rate rather than taking what you can get quickly because it was forgotten until the day of closing...

What forms are involved?

Of the seemingly hundreds of documents you will sign, the primary ones are:

• The Settlement Statement (HUD-1)
• Mortgage papers or certified check for cash purchases
• Homeowners' Insurance
• Title Insurance
• The Title or Deed

Prior to closing you should review the Settlement Statement or commonly called HUD-1. Occasionally there will be separate settlement statements for the buyer and seller so you may only see your portion of it. The settlement statement will tell you how much money you will need to bring to closing. Confirm with your closing agent what forms of payment are acceptable.

Of course, working with a Realtor® makes all this much easier. It’s the Realtors® job to manage the details for you.

Finally! You get the keys to your new home!

But don't want to wait for the keys to get out the packing tape! See our Moving Tips for valuable resources for being as prepared as you can be to make your move smooth and most of all FUN!