Don't be afraid to ask questions

[1sttimebuyer_IHB]

To anyone out there who is on the fence ... do yourself a favor and proactively ask questions. The people on this forum have been an invaluable resource. We wish we had had the courage to post sooner than later.

Since we've taken so much, we thought we should give whatever advice we could back.

We learned a few lessons the hard way and wanted to make sure that first time buyers out there are aware of what they could be getting themselves into.

Things we learned the hard way:

1) the base price - is exactly that - base - expect to spend much more

2) incentives are never free - shop the rates and get firm quotes before you commit to using the builder's lender

3) prepaid hoa's - be careful - if it ends up on the escrow statement - not exactly free to you. if they list it as a credit from the builder - charged as a debit from the association.

4) broker coop - make sure to walk in with your broker on your first visit

5) have an attorney look at the contract before the 3 day right of rescission ends. spending 500 - 1000 up front is worth saving your deposit or more down the line.

With that said, although we didn't get anywhere close to the "best deal" we love our home. We probably paid a premium compared to tomorrow's prices, but take some comfort that it's a discount from yesterday's.

Since it's so incredibly hard to time the market, the only other piece of advice we can offer, is buy a home that you'll be happy in regardless of cycles.

Best of luck to all of you on your home searches!

 

[nirvinerealtor_IHB]

1sttime,

Congrats on your new home as I hope you bought the home that you really loved. Just enjoy your new home and do not look back; like you said it's hard to time market. Only future will show the effect of your today's decision; I think it will be a pleasant surprise for you as you can focus on the next thing like career enhancement (to keep up with your new debts ). The mistakes that you think you made today are extremely valuable for future purchases; besides, you do not become expert being the "1sttime".

I just want to remind you that IF any incentives from builders are taxable, you can use them to lower the basis of your home instead of paying taxes on them as normal income - check with your CPA for IRS rules.

 

[awgee_IHB]

It isn't hard to time the market. That's a fallacy told time and time again by those with a vested interest in folks buying their product. It is difficult to control one's emotions regarding large purchases and investments, and that is why most folks will buy at the top and sell at the bottom, not because it is difficult to time the market.