Jun 11 2009
Four Rules for Buying Homes in a Depressed Market
Maybe rather than depressed market I should say that buying in a market where home values have readjusted should cause a drastic readjustment of our values. There are Northern Kentucky homes for sale. In the recent past we were encouraged to buy homes partly based on what their value would grow to be (when possibly the value was already inflated). We were encouraged to buy more house than we needed because it was the “smartest” investment. With home values adjusted down dramatically, the rules have changed. In some ways the “new school” is “old school” and common sense can get you a long way.
1. SAVE AT LEAST 15% FOR A DOWNPAYMENT Spending is more glamorous than saving, but do you want to be glamorous or happy? Lowering your payments, getting a better interest rate and reducing the overall cost of the house… doesn’t that sound good? What if you find your Northern Kentucky homes for sale and you’re not ready? Start saving now. It may seem impossible for some to save $15,000 cash for a $100,000 home but you don’t know what you can do until you try. I just saw the results of a survey at www.filife.com that asked “how much money do you spend a week on eating out?” The average was $88 week! That’s $4,500 a year. Maybe start saving some of that. It’s healthier to eat at home anyway.
2. LIST THE DETAILS OF YOUR NORTHERN KENTUCKY HOME This one is worth an article all to its own, but I wanted to mention it here. You should make a detailed list of the things you need and want in a home. Don’t just look at Northern Kentucky homes for sale, narrow it down. Do you want to live in Independence, Hebron, Union, or Walton? Think about details like neighborhood, schools, number of bedrooms–anything that might make one home preferable to another. Then rate your items, with non-negotiables at the top. If the next rule is true and you should think long term, then you need to make sure you buy what you really want.
3. THINK LONG TERM There are people out there buying foreclosed homes and reselling them–but it may be best left to the professionals. There are Northern Kentucky homes in this situation but as a rule, the days of quick flips are over. Even if you are buying investment property you need to think long term and buy only what you can afford to keep for a while. 
4. KNOW WHAT YOU CAN AFFORD Your bank or loan professional can present to you the loans you may qualify for but you have to look at your budget and determine what you can afford. If you don’t have a budget or don’t know what you spend monthly on food and various things then it’s time to do that before you look for a house.
I just looked at Dave Ramsey’s website thinking they might have a nice budgeting tool and I noticed they had a page on “Home Buying Tips” that walks you through the steps
http://www.daveramsey.com/etc/cms/home_buying_tips_12203.htmlc
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