THREE THINGS TO CONSIDER WHEN BUYING A HOME
Consider these things when buying a home:
When searching for a new home, it’s common to explore several properties before discovering the perfect one. While a few individuals may instantly recognize their dream house upon stepping inside, for the majority, determining the ideal home requires careful thought and deliberation. As the number of available options increases, the process can become more daunting. However, there’s no need to fret; simplifying the process is straightforward, and you can achieve it by giving primary attention to these top three factors:
Price
Location
Home Features
PRICE
The first and most obvious consideration when buying a home is the price. When you’re house hunting, it’s essential to establish a realistic budget and stick to it. While it’s tempting to fall in love with a house that stretches your means, overextending yourself can lead to financial stress in the long run.
Determine how much house you can afford based on your income, expenses, and financial goals. Consult with a mortgage lender to get pre-approved for a loan, giving you a clear understanding of your budget.
Here are some key points to keep in mind regarding the price of a home:
The sticker price
If you’ve found a couple of homes you’re interested in, you’re probably already comparing their prices. But it’s not just whether each home fits your budget. It’s also what they offer for the value. The sticker price of one house might be much higher than the other—but if the cheaper home requires a lot of work, the cost might balance out. Consider your options and measure them against your total budget with the help of an expert real estate agent to make the best choice.
The cost of homeownership
Remember that the purchase price is just one part of the cost of homeownership. You’ll also need to budget for property taxes, homeowners’ insurance, maintenance, utilities, and, if applicable, homeowners association fees. Do some research to determine the cost of these items in your area, and factor them into your overall budget to avoid surprises.
Negotiation
The sticker price of a property isn’t always set in stone. You can (and should) work with your real estate agent to negotiate the best possible price using comparable homes in the area and the current market conditions. This is why working with an expert agent is critical—they can offer detailed insights about your chosen home, location, and market and help you craft the most competitive offer while getting you the best deal.
LOCATION
Location is often touted as the most critical characteristic of any property, and for a good reason. The neighborhood you choose can significantly impact your quality of life and your property’s future value. The location will also influence other factors on this list, such as the sticker price of your home, HOA rules and fees, and more.
Here are some things to consider:
Commute and accessibility
When you imagine yourself living in a home, you should also picture your day-to-day life. Think about your daily commute to work, school, or other essential destinations. Is this location convenient, or will you spend hours stuck in traffic? Also, consider the home’s proximity to public transportation you might want to use, highways, and major roads.
Neighborhood features, factors, and amenities
When considering a home, explore the amenities in its surrounding area, including schools, parks, grocery stores, restaurants, and healthcare facilities. You can use the information to evaluate which home fits your lifestyle and preferences better.
Also, consider other neighborhood characteristics such as school districts, flood zones, and crime rates. If any of these will influence your life in a significant way, make sure you factor them into your decision-making process.
Future development
Remember that when you buy a home, it’s recommended that you live in it for at least two years—and more is better. This is to help you build equity while you pay down your mortgage, and it allows you not to pay capital gains taxes when you sell again.
That means you should be excited to stay in this home’s location for two years or more and be aware of potential future developments in the area. Areas with planned infrastructure improvements and rising property values may be suitable for long-term investments. Still, if you prefer an area that will remain relatively the same, you might want to look elsewhere. Additionally, some developments can hurt property values if they increase noise or dramatically change the surrounding area’s aesthetic, so research before deciding.
HOME FEATURES
Once you’ve narrowed your budget and chosen a desirable location, it’s time to focus on the home’s specific features. This one seems obvious, but considering a home’s features doesn’t mean it needs to have every upgrade under the sun. Instead, consider how its features (including its square footage, number of bedrooms, outdoor space, and much more) meet or do not meet your specific needs.
Here are vital factors to consider:
Size and layout
While you’re comparing homes, think about the size of each one and its layout. Does it accommodate your needs and potential future changes, such as a growing family or remote work requirements? How many bedrooms and bathrooms do you need? What about flex space? These are the most basic features but also the most important because they’ll affect most aspects of your daily life.
Condition
As mentioned before, a home’s condition will affect both its sticker price and the cost of making it livable down the road. For that reason, you should scrutinize the property’s condition. Even if you’re in the market for a fixer-upper, completing a thorough home inspection will help uncover hidden issues so you can factor their costs into your budget.
Must-have characteristics
This is when you can get into the bells and whistles. Besides the basic basics, make a list of features you need and want to see in a home before you consider buying it. This can include a certain style of architecture, smart home technology, outside space, types of finishes, and much more. Just limit the items on your “must-have” list to features you absolutely must have. That way, you can find a home that meets your needs within your budget.
Have your list? Compare the houses you’re looking at to the list and see which one stacks up better.