You probably here it all the time now ... People keep saying "It's a BUYER's Market ... It's a BUYER's Market". And, I have to keep reminding people it IS a "buyer's" market, but only if the buyer has, relatively speaking, good credit.Assuming the buyer has good enough credit to buy the home they desire, the next question tends to be - "Well, how much home can I afford?" This question is not as easily answered. Most people simply compare their income to the selling price of the home(s) they are considering.
But, there's a lot more to consider than just selling price. Bankaholic® posted some great insight into some of the things that should be taken into consideration by those that are actively seeking or considering buying a home in today's market.
One piece of information that helps open-up the eyes of many potential homebuyers is their short paragraph on "Accounting for Extraneous Expenses":
As with almost any major purchase, there can be a number of fees associated with buying a home. Costs associated with property taxes, homeowner’s insurance, standard maintenance, and utilities should not be overlooked. In addition, if you buy a home that is part of a complex or attached to a homeowner’s association, you will have to pay annual fees as well. Make sure that you take these additional expenses into account when you are determining how much home you can afford.
