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Lexington Park Real Estate News / Buyer – Seller TipsLexington Park HOME BUYING PITFALLS TO AVOIDSellers usually rely on sales of Lexington Park homes of comparable value to determine a fair and realistic price to set for their home but many sellers feel their home is worth much more and price their home accordingly. Buyers must also be tuned into sales for comparable homes in Lexington Park in order to judge the price of any home that is under consideration. Being “House Poor” gets to be “Old New” real fast. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of income goes to the support of the Lexington Park house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to your limit leaves you highly exposed when the inevitable changes to the national or your personal economy occurs. Lexington Park Real Estate CyclesDuring a slow economic time, fewer people are buying homes in the Lexington Park market. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family. During sellers' markets, Lexington Park real estate sells quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers' markets, Lexington Park real estate may sit on the market for a while before selling, so sellers become more flexible and may even drop their prices. Buying Lexington Park Real Estate...Will it Pay?With a typical 30-year loan, most of your monthly payment goes toward interest payments with only small amounts going to the principle in the early years. Only half the principle is repaid in the first 23 years of the loan. You can build equity in your Lexington Park faster by choosing a 15-year loan instead of a 30-year loan. As a Lexington Park real estate owner you have the right to pay more towards the principle loan amount each month. Let’s say your monthly payment is $700.00 a month and $100.00 a month is being applied to the principle. If you choose to pay $900.00 instead of $700.00, the $200.00 overage will be applied entirely to the principle. Thus, instead of gaining $1,200.00 a year in home equity, you gain $3,600.00. Investing in Lexington Park can be a very good idea. Choosing Your Lexington Park NeighborhoodThe fact is that much of the value of Lexington Park and real estate in general rests in its surrounding economic and social environment, which means it’s neighborhood. In addition to being located in the right neighborhood, the Lexington Park that you buy must not clash with its surroundings. To picture what we mean here, visualize the most expensive home you can imagine and then place it in the middle of a run down neighborhood. Not so desirable is it? To sum up, the Lexington Park that you buy gets its value from a combination of the home’s location and its size, style, age and amenities. You can change the home’s size, style and amenities but you are stuck with the location. What Makes Lexington Park Sell?If your only reason for selling your Lexington Park is for the purpose of taking your profits there are a couple ways to approach this. Assuming you have lived in the Lexington Park for two years so you can avoid federal tax consequences, if you sell when prices are high and rent until prices come down before buying a replacement home, you will have maximized your profit. Remember, if you sell when prices are low, you will still make a profit and be able to buy a replacement home while prices are still low. Lexington Park APPEALA large part of the appeal of the real estate market in any area is the architecture or the style of the homes themselves. The appeal of Lexington Park is its appropriateness to the region in terms of style, history and weather conditions. |
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