When looking for a home, be sure to get the home with the most equity already in it.
Purchasing a home is important for many reasons. First, we need a place for our families to live. Second, if you’re able to purchase, it’s a smarter financial decision than renting. Most homeowners know that’s true at tax time.
Purchasing a home is an investment. The idea is to hold onto the property for years so that you can gain equity through market growth and your own updates. Then, when you sell, you make money off of your investment. This is the same basic principal as putting money into a mutual fund.
In this market, where there’s a deal on every corner, it’s easier to purchase the home with some equity already in it. This would mean you would purchase the home for less than what it is worth, having a jumpstart on your equity accrual. Brilliant.
A good starting point to know if the value is good (but certainly not set in stone) is to look at the tax assessment. This is public information that can be viewed on the county website. It will give you an idea of what the home is worth but the appraisal is the real indicator.
When I show homes, I consistently notice a big difference in square footage when looking in the same price range. For example, I was showing Severn townhomes to a buyer last week in the $180,000-$210,000 price range.
Let’s compare a few of these properties.
First, we saw a 1,600 square-foot split foyer with some updates for $209,900.This home had three bedrooms and one and a half bathrooms and was built in 1978. The tax assessment is $185,100.
Next, we saw a 2,200 square foot, three level town home (also with updates) for $210,000. This town home had four bedrooms, three and a half bathrooms and was built in 1995. The tax assessment is $236,200.
Finally, we saw a 1,700 square foot, three level town home with updates for $180,000. This home featured three bedrooms, two and a half bathrooms and was built in 2003. The tax assessment is $180,700.
This is just an example of how drastic the difference is between square footage, bedrooms/bathrooms and price. It also shows you how the tax assessment is sometimes on point with the list price and other times, very different.
Searching for a home is about getting what your family needs and wants. It’s also an opportunity to make a smart investment so when you cash out in the future your payout is big.
Be sure to work closely with your real estate professional so you can get the best house, with the most square footage and most value for the least amount of money.
That’s a smart investment.
Purchasing a home is an investment. The idea is to hold onto the property for years so that you can gain equity through market growth and your own updates. Then, when you sell, you make money off of your investment. This is the same basic principal as putting money into a mutual fund.
In this market, where there’s a deal on every corner, it’s easier to purchase the home with some equity already in it. This would mean you would purchase the home for less than what it is worth, having a jumpstart on your equity accrual. Brilliant.
A good starting point to know if the value is good (but certainly not set in stone) is to look at the tax assessment. This is public information that can be viewed on the county website. It will give you an idea of what the home is worth but the appraisal is the real indicator.
When I show homes, I consistently notice a big difference in square footage when looking in the same price range. For example, I was showing Severn townhomes to a buyer last week in the $180,000-$210,000 price range.
Let’s compare a few of these properties.
First, we saw a 1,600 square-foot split foyer with some updates for $209,900.This home had three bedrooms and one and a half bathrooms and was built in 1978. The tax assessment is $185,100.
Next, we saw a 2,200 square foot, three level town home (also with updates) for $210,000. This town home had four bedrooms, three and a half bathrooms and was built in 1995. The tax assessment is $236,200.
Finally, we saw a 1,700 square foot, three level town home with updates for $180,000. This home featured three bedrooms, two and a half bathrooms and was built in 2003. The tax assessment is $180,700.
This is just an example of how drastic the difference is between square footage, bedrooms/bathrooms and price. It also shows you how the tax assessment is sometimes on point with the list price and other times, very different.
Searching for a home is about getting what your family needs and wants. It’s also an opportunity to make a smart investment so when you cash out in the future your payout is big.
Be sure to work closely with your real estate professional so you can get the best house, with the most square footage and most value for the least amount of money.
That’s a smart investment.
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