Top Considerations When Buying a Home

1. Top Considerations When Buying a Home By: Joe Holmes

2. Available Topics (just click) • Your Budget • Selecting Your Home • Purchase Price • Future Resale • The Decision Exit Presentation

3. Your Budget • Credit • Good credit • Not so good credit • Improving your credit

4. Your Budget • Affordability • Income • Expenses • Comfort zone

5. Your Budget • Down payment • Expected • Sources • Saving up Available Topics

6. Selecting Your Home • Location • Desirable factors • Undesirable factors • Commuting

7. Selecting Your Home • Needs • Defined • Examples

8. Selecting Your Home • Wishes • Defined • Examples Available Topics

9. Purchase Price • Comparables • Recent sells • Most like • Square footage based

10. Purchase Price • Location • Positive factors • Negative factors

11. Purchase Price • Investment return • Equity over time • Value factors Available Topics

12. Future Resale • Property condition • Improvements made • Improvements needed • Prepare for sale

13. Future Resale • How long will you stay? • Long term • Short term • Unknown period

14. Future Resale • Market conditions • Buyer’s market • Seller’s market • Preparation Available Topics

15. The Decision • Affordability • Comfort • House rich…

16. The Decision • Suitability • Needs met • Some wishes met

17. The Decision • Commitment • Risks understood • Feels right

18. Top considerations when buying a home • Your Budget • Credit • Affordability • Selecting Your Home • Location • Needs • Wishes • Purchase Price • Comparables • Location • Investment return • Future Resale • Property condition • How long will you stay? • Market conditions • The Decision • Affordability • Suitability • Commitment

19. Case Study #1 A young couple in their early to mid-twenties has decided to buy a home. They have started their new careers out of college and are making a decent income. QUESTION- What are some key considerations for buying a home for their life circumstances? THOUGHTS- Their life situation could change significantly over the next 3-5 years, such as income level, job location, familial status and interests so they should consider a home that is transitional and prepares for these possibilities- affordable, re-saleable, and in a central location

20. Case Study #2 A couple in their mid to late thirties has decided to buy a new home. They are established in their careers, make a good living and their kids are in the early years of school. QUESTION- What are some key considerations for buying a home for their life circumstances? THOUGHTS- Their life situation is fairly stable and could reasonably be expected to stay so. They should buy a home that meets their needs, is affordable for their budget and allows them to save for retirement and educational needs. They should consider buying a home that they will be satisfied with for about the next 10 to 20 years.

21. Case Study #3 A couple in their early to mid-fifties has decided to buy a new home. They are expecting to retire in the next ten or so years and would like a smaller home since they are empty nesters and would like to spend less time on upkeep. QUESTION- What are some key considerations for buying a home for their life circumstances? THOUGHTS- If they are determined to buy a home so near retirement, then they should determine whether the new home would save them money over their current home in mortgage and upkeep. Because they are near retirement they need to evaluate tax and retirement benefit implications of any actions.

22. Sources • How to Find the Right Home by Elizabeth Weintraub, <http://homebuying.about.com/od/buyingahome/a/buyerinfo.htm>, 1 August 2010. • 7 Tips for First Time Homebuyers by Bankrate.com, http://realestate.msn.com/article.aspx?cp-documentid=13107818, 1 August 2010. • Buying a Home by HUD.gov, http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home, 1 August 2010.

23. Thank you for your time!The End Available Topics