You may have heard that there has been a recent spike in home sales. Not to be confused with a spike in home prices.

Some people say that this is a sign of the economic recovery.  Others think it might have had something to do with the November 30th deadline for the $8,000 First-Time Home Buyer Tax Credit.  After all, the thinking goes, there was this nice little stimulus in place and people were scurrying around to take advantage of it. Then, Congress extended it and expanded the tax credit to include $6,500 for people who already own homes.

In fact, in recent months there has been an uptick in the sales of existing homes.  Existing homes = lived-in-by-someone-else homes. Not brand new homes.  People looking to take advantage of the $8,000 tax credit knew they didn’t have the six to eight months it would take to buy a brand new, never been lived in home.

Learning to Deal with Maintenance Issues

The thing about existing homes is that, depending on the age of the home, there are probably maintenance issues that need attention.  Every reputable home inspection company I know will perform a thorough inspection for the home buyer prior to settlement.  These same reputable home inspection companies will also have the home buyer sign an agreement stating that they [the home buyer] realize that the home inspector is not going to bust through walls or tear up carpet or dig up the yard looking for things he or she cannot readily see.

It’s possible, even after a thorough home inspection, that something might need attention right after you move in. As soon as the ink is dry on your HUD-1 settlement statement and you’ve been handed the keys to your new, existing home you may find out the garage door doesn’t work exactly right (this actually happened to me, personally), one of the faucets has a slow drip unless you really turn the handle hard or the HVAC unit which provides you heat and cooling finally decides to give up the ghost.

Bottom line: you might be faced with a maintenance issue right off the bat.  It might be a minor inconvenience or a major hassle.

Sometimes, a home warranty will cover a lot of this stuff.  So, it’s a good idea to have the home seller provide you with one as part of the purchase contract when you first place an offer on the house of your dreams.  However, there are some things the warranty companies don’t cover or somethings that they have a maximum amount which they will pay out.  If you don’t have a home warranty, you’ll have to arrange to have whatever went wrong fixed.

Dealing With It

This is is just one of the many joys of home ownership.

It’s not like the old days of calling the landlord and having the maintenance man come by.  Now, it’s your turn.  That’s why it’s important to think long and hard about home ownership, in general, and whether or not you really want to own a home.  It’s not for everyone.

The big thing to remember is that “life happens” and sometimes it happens sooner rather than later.  Sometimes, you just have to take a deep breath and realize that this place you now call home comes with a certain amount of responsibility. Don’t forget the bennies like the mortgage interest deduction from your taxes or the fact that you can paint your walls any color you want or re-model you kitchen or bathroom without asking for permission first.

Home ownership is definitely the way to go.  It does mean you have to take care of the place when things need help.

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