Mailbag: Should I Set My Home Search Parameters at a Lower Price Point?
When buying a home, there are a lot of costs to factor into the equation. Angie shares how to set your search parameters on pricing and answers two other questions from the mailbag.
Mary has heard so many homes are selling above list price. When setting up their search parameters, should they set the maximum price to be less? Angie suggests starting off at a lower price and plan for the increased amount for the loan. Remember though, if the home doesn’t appraise, your loan won’t make up that gap. If there are multiple offers, the price likely will go up and you’ll want to have enough money in your budget available to cover it. Don’t forget to look into new construction, which doesn’t always get listed online in the same ways as existing homes.
Stacy in Durham wants to know if a 20 percent down payment is enough in today’s market. Angie says it is, however the seller may feel more comfortable with a higher down payment if they have multiple offers.
Dan in Fuquay-Varina asks if he should be able to expect to rent back his home from a buyer for a period of time? Is that a request that takes place during negotiations or upfront? Finally, how much time can he rent back? Angie says her answer is completely different now than it was merely six months ago. She suggests writing that into the listing from the beginning to prepare buyers and let them know what’s important to you. The maximum amount of time the buyer can rent back is 90 days, so keep that in mind when you list your home. Don’t forget about insurance during this time! The standard homeowner’s insurance does not cover you properly, so make sure you set up the right policy for this time period.
Listen to the entire episode or skip ahead using the timestamps below.
0:38 - Mailbag: Should I set my home search parameters at a lower price point?
5:07 - Mailbag: Is 20 percent down enough?
6:06 - Mailbag: Can I rent back my home from the buyer?
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