Buying a home is a major milestone whether it’s your first home, an upgrade for a growing family, or a place to retire after the kids have left the nest. When buying a home in Philadelphia, there are a few things to consider before jumping right in with a down payment. From location to inspections and added taxes, these are some of the things home buyers Philadelphia should think about before putting in an offer on a home.
Get a Feel For Different Neighbourhoods
When searching for a home buyers Philadelphia, the trick is not to be too narrow-minded about the areas you want to live in. By being open to different neighbourhoods, you increase the chances of finding a house that fits with your budget and matches the criteria on your list. Visit a few different neighbourhoods to get a feel for the atmosphere, the facilities nearby, and the type of people who could potentially be your neighbours. You may just find a hidden corner of the city that you never knew existed but is perfect for you.
Be Sure to do a Proper Inspection
The truth about real estate in Philadelphia is that many stand-alone homes can be on the older side, so you’ll want to make sure that the house you’re planning on buying is in top shape before you sign any papers. A proper inspection will determine if the wiring and plumbing is up to code and identify any potential repairs or replacements that are needed like windows, doors or wall damage. You should be there while the inspection is taking place so you can see any issues firsthand and decide if they are something that you can factor into your budget or need to discuss in negotiations.
Shop Around for Mortgage Options
Obviously buying a home is no small purchase, so you will most likely need a loan to help with the payments. A typical down payment is around 20 percent of the total cost of the home, which can be quite hefty, especially if you don’t have a lot of savings. That being said, there are ways around this. Some financial institutes offer special mortgage packages for first-time buyers with down payments as low as three percent of the total cost of the house. Just keep in mind that usually the lower the down payment, the higher your monthly mortgage rates will be.
Taxes Should be Included in Your Budget
What many first-time home buyers don’t realize is that the actual cost of the house is not the final price you pay. You also have to include taxes including the realty transfer tax and property taxes. The realty transfer tax is charged any time a sale or transfer of property happens. In Pennsylvania, the realty transfer tax is one percent of the value of the real estate. After you purchase the home, you will also have to pay property taxes (also known as real estate taxes) every year. In Philadelphia the real estate tax is approximately 1.3 percent of the value of your home.
