I can answer many of the questions that home buyers have but not all of them. Here are a few I can’t answer:
1. How much will this home be worth in five years?
2. Will this condo association levy an assessment this year?
3. Will property taxes go up next year?
4. Will association dues go up next year?
5. How long will the roof last?
6. Will interest rates be higher or lower in 2015 or about the same?
7. How much will this home be worth if I remodel the kitchen?
As a rule on the internet lists are supposed to be in multiples of five but I chose 7 because I can. I have to say the answer to question 3 about taxes going up next year is probably yes but I can’t know for sure.
Life is full of uncertainty. Most people with jobs don’t know if they have a secure future. I don’t even know how much money I’ll make in 2015. I have a range in mind and some goals and an idea of how to get there but there are no guarantees. We don’t even know how long we will live.
However there is such a thing as due diligence. It is possible to look up any property on the Ramsey county web site and see what next years proposed taxes look like. A good home inspector should be able to tell a buyer what the average life expectancy is of various appliances and how old the appliances in the home are.
There are questions about neighbors and neighborhood businesses that can not always be answered either. Maybe the neighbors are wonderful people but a year later they sell and the people who move in have noisy parties all night.
There are financial documents available for to review for people who are purchasing a condo. Buyers should make sure the association is in good financial condition and sometimes the documents will even outline plans for assessments needed for improvements.
Home buyers don’t really have a way to know what the value of a property will be when it is time to sell. Even though property values went up every year for decades we just saw them go down from about 2006 to 2011. For people who rent I think they can always count on rents going up.
As a rule I think home buyers should take care to over extend themselves. A smaller less expensive home might mean being able to have more disposable income and the ability to move or take advantage of new opportunities. I also like to tell the home buyers I work with that if they don’t love it they probably should not buy it.
