Buying a
house in Utah County can sometimes mean buying its
problems. From barking dogs to black mold to leaky gas
tanks, there’s a lot that can go wrong. Here are the
five biggest mistakes buyers in Utah County make. Every
homebuyer should take note to avoid an expensive
mistake.
Trying to Predict the Bottom of the Utah Market
As smart as you think you are, you cannot sharpshoot the
Utah real estate market. You never know when the best
time is. Prices move up and down, and occasionally, like
right now, they go down a lot. Nobody knows when the
tide will turn, and based on historic data, it always
does. The best you can do is buy within the low, and
we're definitely in the low right now. Look at the
current
Utah County market
conditions and determine if this is the right time
to jump into the market for you.
You also need to keep the interest rates in mind. If you
wait for prices to come down by 10%, and interest rates
go up by a half a point, your monthly payments will be
the same. Historically speaking, this also makes now a
good time to buy. The people I would advise not to buy
right now are those who don’t plan to stay in their
homes for very long. If, however, you are ready to make
a long-term commitment, now is as good a time as any to
buy a home.
Getting a great interest rate is an important factor in
buying a home. If you buy
right in a down market you are fine. I purchased a home
in 2008 when the market was falling. I have collected
rent every month and made a nice profit. I bought this
home for a good deal in 2008. In 2012 it is still a good
deal and has been giving me a 10% return on my
investment. This is substantially better then the
interest rate the bank is paying.
Picking the wrong city in Utah County
Let's face it Utah County is a great place to live.
Buying a house ought to be at least a five-year
proposition for you to recoup the costs of the actual
move, so you need to be careful you don’t find yourself
stuck in the wrong town for five years. Don’t buy a nice
house on a not-so-nice block. This will protect your
investment as well as ensure you have a good living
experience. The block determines value more than the
actual home. It is always better to move into the worst
house on the nicest street. Make sure you carefully pick
a city in Utah County that matches your personality and
desires.
Falling in love with the furniture and style
Finding the right décor is the easiest improvement you
can make once you buy a house. If the house is decorated
in a way you find very appealing, you may find yourself
instantly smitten and forget the things you are really
looking for in the house. Conversely, a house with
unappealing décor may scare you away. Focus on the home
instead of the deocrations. Try to think more in terms
of the floor plan than the surface stuff. Try to take in
the size, the condition and natural light situation.
Avoid Buying a money pit home
Don't buy a fixer-upper if you don't know how to fix it
up. A lot of people get themselves into situations like
this. They think, “Ah, how hard can it be to fix up a
home?” Money pits always cost you more than you think. A
small kitchen renovation usually costs between
$10,000-$20,000. A standard bathroom renovation can cost
you between $3,000-$5,000. Even painting a house costs
between $3,000-5,000.
If you’ve bought a house that is in a state of total
disrepair, you could end up doubling the original
sticker price. Be realistic when you go into it about
what you can and cannot achieve. If you don't have the
skills to fix up a home don't do it.
Utah County is full of homes for sale. Take your
time choosing a home. Find one that is right for you.