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Daily Archives: May 22, 2012

What Should I Consider Before Purchasing My Next Home?

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A home is the largest purchase many people make. Like any major decision, homeownership requires careful considerations:
Be clear about your purchasing reasons
  • Is your family changing?
  • Are you down-sizing?
  • Do you need to relocate for a new job?
  • Are you moving to a new location?
  • Do you want certain amenities or features?
Estimate the cost of selling your current home
Before pricing your home, calculate sales costs, including:

  • The cost of repairs needed to maintain your home’s value. If you have a leaky roof, or need electrical or plumbing work, your sales price is likely to be lower to cover those costs.
    • Consider hiring a home inspector to uncover any hidden problems.
  • Making cosmetic improvements to increase the ‘curb appeal’ of your home. Relatively lower cost items, such as painting or landscaping, can make your home more appealing to potential buyers.
  • The amount you will pay in real estate commission. Real estate agents receive a percentage of the home sale as a commission.
    • If you are considering selling your home yourself, estimate your time and costs for advertising, showing the house to prospective buyers and handling negotiations.
  • Other miscellaneous expenses.
    • Is there a prepayment penalty on your mortgage?
    • Will you incur the cost of temporary storage for your personal items while showing to potential buyers?
    • Have you planned for moving and some packing costs?
Estimate the sales price for your current home
  • If your home is priced realistically, you may be able to sell it faster.
  • Property appraisers set a price by comparing a home to recently sold, nearby properties similar in square-footage, room number, age, and features.
  • Your real estate agent will help you decide on a listing price by getting a list of comparable properties.
Consider purchasing a home that needs renovation
  • Homes needing renovation may be available below market value.
  • Our Purchase & RenovateSM Loan may enable you to buy and repair with one loan.
  • Consider that remodeling and repairs may require hiring a contractor, depending on the loan you choose.
  • The Wells Fargo’s Mortgage plus Home Equity Financing option combines a Wells Fargo first mortgage together with home equity financing. There may be tax benefits and reduced closing costs with this option. (Consult a tax advisor on the deductibility of interest.)
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