We are getting ready to buy our first home and we want to make a smart investment. What are the biggest mistakes new homebuyers make?

Probably the biggest mistake is looking at homes that you can’t afford. You could end up buying a house that you really can’t afford. You’ll need to figure in all the extras like utilities, homeowner fees and taxes. Or you could feel a little let down in what you can afford. You need to be realistic.

Another big mistake is not planning for your future. What are your needs for the next 5-10 years? Is the house large enough? Also, think about the location. Is the house located in a good school district? (Always a plus.) Does it have amenities nearby? Is the area relatively quiet? Do you like the neighborhood and neighbors?

When you’re looking at houses, make sure you look at several of them. Don’t buy on impulse. Take time to really look at the houses, and evaluate the properties before making an offer.

Lastly, educate yourself about the buying process particularly financing and escrow. If you are buying or selling a home and need competent and caring representation, please call us at 816-373-3800 x4373.

Affordability Index

Housing affordability condition remains extremely favorable. NAR’s Housing Affordability Index, while declining modestly in June, was still the sixth-highest index on record dating back to 1970. With a 20% down payment and 25% of gross income committed to mortgage principal and interest, a median-income family earning $60,700 could now afford a home costing $289,100 at the current interest rate, well above the median existing-home price of $181,800.

With the housing affordability index at 16%, it is far below the historical standard of 25%.

If you are curious about home prices and activity in your neighborhood, click on MLS Market Snapshot for current, free market information on your neighborhood delivered directly to your email.

Home Sales

Some good news to report!

Sales of existing homes trended upward for the fourth straight month, benefiting from favorable affordability conditions. The $8,000 tax credit continued to draw in first-time buyers, who accounted for 29% of all transactions in May. Repeat buyers, who often sell their current house to first time buyers, are also coming back to the market in large numbers.

Latest data release: June 23, 2009
Source: National Association of Realtors
KW Research

REALTOR® Magazine-Daily News-Buyers, Sellers Rank Real Estate Companies

The 2009 J. D. Powers Study ranked our company, Keller Williams, as #1 in Home Buyer Rankings and a narrow second place of Home Seller Rankings. Check out the article below:

REALTOR® Magazine-Daily News-Buyers, Sellers Rank Real Estate Companies

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