1.  Not knowing what you can afford
Many first-time homeowners get so caught up in excitement of purchasing a home, that they have no idea what their budget is or what they can afford.  Consequently, they end up looking at homes that are out of their price range, fall in love with houses that stretches their budget and then get discouraged because they are forced to look at homes in a lower budget. Before you go home shopping, make a list of all your monthly expenses and subtract this total from your take home pay.  Then go to the bank and get pre-approved for a loan.  If you don’t get mortgage qualification first, you are only wasting your time, the seller’s time and the agent’s time if you sign a contract and then find out the bank won’t lend you what you need.

2.  Forgetting about additional expenses
Owning a home has different expenses than when renting.  As a homeowner, you will be responsible for property taxes, homeowner’s insurance, and house repairs that can be expensive such as replacing the heat pump or roof.   If you decide to buy a condo, you will be responsible for homeowner’s fees which can be a few hundred dollars a month.  You may have to scale back the size of the home you are looking for in order to work with your size of income and the lifestyle you want.

3.  Ignoring a home inspection
Never purchase a home without having the home inspected.  What may look good at first glance may have serious issues that can be costly in the future.  It’s important to find out if there are any foundational issues, mold, sloping exterior features, low water pressure or structural damage before going into escrow.  By keeping your emotions in check, and having your home inspected with a critical eye, you can save yourself money and heartache in the long run.

4.  Failure to hire a real estate agent
Some new homeowners feel that they can save money by shopping for a new home on their own, but this can end in disaster.  Real estate consultants not only have in-depth knowledge of the housing market and market conditions, but the top producers have quality negotiation skills to get you the best deal.  Buying a new home can be overwhelming and confusing, which is why having a real estate agent deal with copious amounts of paperwork, financial details and sometimes a difficult seller’s agent will make your home buying experience a less stressful one.

5. Not Thinking Ahead
Although it’s impossible to know everything about the future of your chosen neighborhood, you should still pay attention to what information is available so you aren’t confronted with any unexpected surprises down the road.  Some things you should inquire about include: Future development plans for the neighborhood, zoning laws, home value statistics and plans for any future highways close by.   If your street is likely to become a major thoroughfare, or a freeway is going to be built near your backyard in the next 5 years, you may want to reconsider moving into a particular neighborhood.

To own a home is the American dream, but it isn’t without its share of potential pitfalls. If you know of those issues ahead of time ,however, you can protect yourself from costly mistakes and shop with confidence for your perfect first home.

1. Arizona Real Estate: Even though the economy is struggling, the best deals to be had in Arizona are right now. Whether you need a 2 bedroom condo, a small adobe house or luxury estate, Arizona has a variety of homes to choose from for every budget. For example, if you want to live out of the city in a town such as Queen Creek, you can get a brand new 2,700 sq ft home with incentives for under $150,000. If you are a savvy buyer, you can take advantage of some huge bargains and get the dream home you always wanted.

2. Unbeatable weather: Arizona is called the “Valley of the Sun” for a reason. With over 300 days of sunshine a year, Arizona has some of the best weather for a variety of activities.  If you still want snow during the winter, head up to Flagstaff (peak elevation is 12,000 feet) for some skiing and snowboarding fun.

3. Thriving Business:  Although Arizona (like every other state) has taken a hit during the recession, the state still has a thriving business sector which includes aerospace, manufacturing, high-tech companies, aviation, and a wide spectrum of other industries. Phoenix is currently home to seven Fortune 1000 companies as well as other companies such as U-Haul, Intel, and Honeywell. Tempe is the headquarters of two Fortune 500 companies-US Airways and Insight Enterprises. The city is also home to the largest research university in the United States, Arizona State University. In all, over 150 of Fortune 500 companies maintain a presence in Metro Phoenix.

4. Diversity:  There are 110 languages spoken in the Greater Metro Phoenix area representing a variety of ethnicities. There are currently 14 Indian tribes throughout Arizona as well as Hispanics, Latinos, Asians, Europeans and residents that hail from every state in the US.

5. Recreation:  The great weather affords many recreational activities including golf, museums, zoos, swimming, hiking, fishing, boating, skiing and shopping. Arizona has over 200 golf courses, 6 professional sports teams, the largest mountain preserve in the United States and one of the Seven Wonders of the World, the Grand Canyon. No matter your interests, there is no shortage of things to do.

Are you convinced on why you should relocate to Arizona?  There is no doubt that Arizona is unique in terms of its residents, culture, and attractions. If you are ready to make the move and want to purchase a home, please contact me anytime at 602-904-1496.

• $8,000 tax credit is available for first-time buyers or those who have not owned a home for 3 years.
• Homeowners who buy a new principal residence after living in their current home for at least the last five years can claim up to $6,500.
• Credit is available for homes that go under contract by April 30, 2010 and close within 60 days after that
• Income limits are $125,000 a year for individuals and $225,000 a year for married couples.
• The plan will include anti-fraud measures such as minimum age requirements and additional authorities for the IRS

If you are a first-time homeowner, don’t wait for Congress to act.  Take advantage of the current home buyer tax credit today!  Call me at 602-904-1496 for your real estate needs.