Buying and Selling a Home in Birmingham Alabama: A Question of Affordability
Buying and Selling a Home in Birmingham Alabama: A Question of Affordability
Two of the most often asked questions by consumers are:
- Is now a good time to buy a home and
- Is now a good time to sell a home
Both are excellent questions and both hinge on the same answer which is a question in itself:
Can you afford it? Can you afford to sell? Can you afford to buy?
The answer to the buyer question may be a bit more obvious. Of course you'll need to be able to afford the monthly mortgage. But what about the cost leading up to obtaining the mortgage? Do you have a down-payment (at least the 3.5% required if financing FHA).
Do you have money for the home inspection? I don't want to even think about you buying a home and not having it inspected.
Your lender will need to know is the home worth the money you are attempting to borrow. Do you have money for the appraisal? If you don't, unless you're paying cash, there will be no home purchase.
So let's say all of that is a go and yes you have all of that "pre-purchase money" and have managed to go to closing and the deed has been transferred.
You've got the mortgage covered, but do you have money to furnish it? Do you money to update the home just the way you've dreamed about? We haven't even talked about routine maintenance yet: interior and exterior upkeep, regular maintenance such as HVAC service contracts, interior and exterior painting. What if you need a new roof in a few years? Are you already planning for it?
Buying a home is about more than just being able to pay the mortgage. It's a responsibiity to maintain the value of your home through regular maintenance, upkeep and updating. If the day ever comes when you need or want to sell your home, there will be buyers just like you once were, who are looking for a home that has been well maintained. Every detailed will be scrutinized by that familiar buyer's eye.
