At some point, you begin to think about areas of adulting that include whether you will be buying a home whether it’s solo, with your significant other or even a group of people. Whether it’s a primary home or a vacation one, it’s important to know what you should be thinking about - especially when it’s your first home. We took some time to chat with Farnoosh Torabi to find out about owning vs renting, what the myths are, if the time of year has an impact when you start this journey and more.
ATHLEISURE MAG: What are the benefits to owning your own home versus renting?
FARNOOSH TORABI: Homeowners enjoy the benefits of typically more privacy and stability in that they don't have to answer to a landlord and experience the risk of sudden increases in rent. With a fixed-rate mortgage, home owners know what their monthly payments will be each month. They may also be able to deduct their property tax and mortgage interest (both up to a point) from taxable income, which can yield savings. Finally, over the long run and on average, home prices have historically appreciated in the U.S., so some homeowners are able to increase their equity and build wealth over time.
AM: When is the right time to begin thinking about buying your own home?
FT: The right time is really subjective. And should be based on your financial and emotional readiness to become a homeowner. Some people start to think about buying a home when they want to settle into a city or town for many years. Other times it's when they want to start growing a family. It really depends on your life stage, goals and overall readiness to take on the responsibilities of being a homeowner.
AM: What are the myths involved in home ownership that may keep people away from doing so initially?
FT: We often hear how complex the home buying process can be and, as a result, this belief can create a lot of early stage overwhelm for people who are interested in becoming home owners. They may push it off, fearful of their ability to navigate the process and making good decisions. That's where an experienced real estate agent can truly be of value.
I've partnered with Realogy, the company behind household real estate names like Century 21 and Coldwell Banker in their recent rollout of a new homebuying program called TurnKey. TurnKey is a new homebuying program from Realogy and Amazon that makes the experience of finding and settling into a home easier and more rewarding, by aiming to simplify the home buying process and offer savings benefits to buyers. Go to Amazon.com/TurnKey where interested buyers can sign up for the program, and after answering a few easy questions, will be connected to a top-rated real estate agent over the phone. Homebuyers who close on a home through a TurnKey agent can receive complimentary Amazon Move-In Benefits, including $1,000 to $5,000 of smart home products and Amazon Home Services, things like deep cleaning and hanging up a heavy flat screen TV. This makes the process of settling into a home even easier.
AM: For those that are single and are looking to purchase their own home, are there things that they should be aware of that may differ from those that are couples purchasing a home?
FT: I'm not sure there are really any big differences, but I can say that when I was single and bought my first home, I wasn't as concerned about the home being my 'forever' home, a place where I'd live for decades and raise my family. The size and location of the home was less important to me, as was the resale potential (since I knew this wouldn't be a long-term residence). I made sure to buy in an up and coming neighborhood. Years later, when my husband and I were deciding on our first home purchase together, we did take into consideration how well we could 'grow into' a home, if and when we decided to have children. Location was extremely important to us - more for the fact that we wanted to be near good schools.
AM: What should first time homeowners consider when it comes to buying a home and should they also be thinking about items that involve selling their home?
FT: I think that first-time buyers want to be financially and mentally prepared for the realities of being a home owner. It can be a big financial undertaking - as well as a big lifestyle change. You'll have to be accountable for repairs and upkeep, whereas if you rented, your landlord would handle the maintenance issues. You have to ask yourself: Is being a homeowner really a fit for my current lifestyle? If you're someone who wants to travel for your job or not be tied down to a location, then homeownership probably isn't the best move for you right now.
AM: Why is now a good time to buy a home as many people think that Spring is the perfect time of year.
FT: The spring is typically the busiest time of year for home sales, but that just means that if you buy in the "off-season'' you'll have less competition and face potentially fewer bidding wars.
AM: How can buyers negotiate the best deal and what resources can assist these efforts?
FT: Having an experienced real estate agent represent you during the buying process can be critical to your success in securing your dream home at the best possible price. It is also important to already be pre-approved for a loan so that sellers know you are a qualified candidate to close on the deal. And the more cash you have to put down as a down payment, the more attractive you'll be to sellers.
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