Happiness Is… An Educated Homebuyer

The following piece is courtesy of Emilio DiSpirito IV, Realtor/Private Office Advisor/License Partner of Engel & Volkers East Greenwich. Engel & Volkers Barrington East Bay, Rhode Island.

"A significant percentage of Americans lack homebuying literacy because, as with many life skills, it is not required to be taught in our schools. Often, people watch their parents scrape by week to week and feel that is how it gets done. As realtors, we need to make a sincere effort to educate the public, and even advocate that public school systems implement such financial tutelage.

Purchasing a home without the adequate financial sense or guidance can be permanently detrimental to your personal or family finances. When buying a home, prospective home buyers need to take into consideration the 'hidden costs' of homeownership. These can include sewer assessments, sewer and water usage bills, routine maintenance, lawn care, taxes over time, homeowner associations, cable, internet, and security.

Unfortunately, I've seen buyers max out their purchasing power to get into a home, only to realize within months the grave mistake that they had made. Now underwater, until their home appreciates, they go without certain conveniences – they quit going out to eat, gym memberships, travel, and other enjoyments, and just hunker down to pay the mortgage. Worst case scenario is foreclosure and the burden it leaves on one’s credit report and ability to leverage future financing for goods or services.

We urge homebuyers to seek professional advice from reputable sources, months before purchasing a home. Homebuying is a marathon, not a race. The old adage “haste makes waste” certainly applies here. Save the endless regrets of moving into the wrong home and get the right advice by finding a highly recommended local realtor.

Searching Google reviews, for example, you will quickly see who looks after their clients’ interests and who may serve you best. Call and or meet with at least two to three realtors before making your decision.

Whether it’s your first or fifth time buying a home, make sure your real estate agent gives you the complete run down of the process, has local resources such as mortgage companies, home inspectors, contractors and any other professional you will need, even after your purchase.

Home buyers need to consider which type of housing is best for their specific financial, physical, and psychological needs.

For instance, if you are someone who is rarely home with little time to maintain a property, then you should consider a condominium. You’ll also alleviate the expense of outsourcing landscaping, repair services, and such.

If you appreciate peace and quiet, you do not want to purchase a multifamily and should go for a single family.

In a tight spot financially and want to better your financial health? You should purchase a multi-family to cut back on cost of living, generate cash flow, and grow your assets over time.

An ounce of preparation is worth a pound of satisfaction. Determine your short- and long- term financial goals before you make the decision to buy. Most importantly, tap the knowledge of a trusted real estate advisor before you rush into the homebuying process."