If you’ve decided to buy your first home, you’ve probably already created a wish list. You know all the characteristics of the house that’s a perfect fit for you… but not so fast. There may be a few extra things that you need to consider before you start your official homesearch.
You want to make a decision that you can feel good about. I get it.
But since your first home is not likely to be your forever home, it’s important to look for a property that will increase in value and appeal to future buyers. For example, even though that two-bedroom condo is fitting for your current lifestyle, do you live in an area where it will be easy to resell it when you’re ready to move on to a bigger and better space? Turns out there’s a lot more to think about than just if you like the property.
So, before you sign on the dotted line, here are two key areas to consider before buying your first home!
Location plays a key role when it comes to determining the value of a property. It’s also a major factor for buyers. When you buy in the right location, your investment is likely to appreciate, you’ll also find it easier to sell your home if you decide to move. If you a specific area in mind for, research its local real estate market.
You need to base your selection on a location that works for you, for example, you may want a short commute to work, but you should also consider how the location will affect you financially. Investing in some neighborhoods is likely to be more lucrative than others. And if you have plans to profit from property sometime in the future, appeal to potential buyers will be important.
If you’re not sure where to start, or you just want a little help in determining which communities or areas are most desirable, hire a real estate agent like Beverly-Hanks & Associates, to do the legwork for you; and take advantage of their knowledge of the local area and what appeals to buyers.
Tip: If you can’t quite afford to buy in a highly sought-after area, keep an eye out for the next big thing. Get familiar with up and coming suburbs or specific areas that are undergoing revitalization. New development can be positive signs for emerging areas.
When you’re looking for your new home it’s easy to seek out properties that are move-in ready, but it may be wise to look at all available options. Don’t be so quick to dismiss properties that need a little TLC. If the home has potential and you’re up to renovating an unpolished gem, it might be worth further consideration. But you must do your homework before you submit an offer.
Keep in mind that there are many ways to add value to a property and not all are extensive renovations. From painting a few walls to changing light fixtures, sometimes it doesn’t take much to make a home fit your style.
If you’re looking at properties with potential for improvement and room to increase the value (for added equity), keep two things in mind:
1 – If this will not be your forever home, the renovations you’re considering should be in line with what will make the home more appealing to buyers. Pay attention to areas that future buyers will be interested in (for example, updated flooring, kitchen, and bathrooms).
2 – If you don’t have a massive budget, how much of the work can you do yourself.
Before you jump off the deep end with a fixer-upper…
Remember that this is real life and not HGTV. Make sure the numbers add up and make sense for your budget. Get quotes from licensed contractors and work out exactly what needs to be done. Ask your real estate agent to give you an idea of just how much value a renovation will add to the home. Once you have all the information and you have a strong understanding of what is involved and how long the project would take, you’ll be able to make an informed decision.
When buying a home, you’ll want to follow your heart. It’s normal to want to be in love with your home purchase, but it’s wise to use your head and your heart. Buying a house might just be the biggest investment you’ll ever make. Take your time and make the right decision.
*this is a contributor written post