Category — Home Buying Tips

Many criteria are important to new homeowners when they buy. You might be looking for a home that’s a good commute to your work, offers the amenities you want and is located in a specific neighborhood. However, don’t forget to consider the less tangible variables, such as noise levels in a neighborhood or other undesirable elements. One aspect that many people don’t consider when they buy is foul odors. Make sure you do your research about what’s located in your neighborhood so you can avoid buying in an area that is prone to foul odors; this seemingly innocuous issue can absolutely ruin your enjoyment of your new home.

When a community goes into decline, this can signal bad news for property values. An apathetic community that accepts decline instead of working to improve the community is more prone to stagnation and entering a downward spiral. Property values drop, and the more caring members of the community move away. This can lead to an uptick in crime, as well as an overall decline of the local community and economy. To avoid all of this, look for communities with an entrepreneurial, can-do attitude.  

So your new dream home is perfect – except for one little thing. During the walkthrough, it comes out that your older electrical system isn’t compliant with current building codes, or perhaps a built-on den sits too close to the property line. The homeowners and real estate agent may rush to assure you that “it’s been this way forever” and nobody cares. In reality, though, nonconforming and illegal property uses can become costly problems, and you must evaluate the risk when you buy.

When you’re buying a home, a new housing development might seem like the perfect opportunity for your needs. You may find that a new development offers the best prices, and you may value the opportunity to customize your home and get exactly what you’re looking for. However, when you’re looking at a new housing development, you’ve also got to consider the future of the development. Will the developer be building other homes in your price range that will aid the appreciation of your home, or is the developer switching to a cheaper phase that could hurt your home values?

Imagine sitting down to enjoy a restful evening at home, and hearing the loud rumble of a giant airplane passing low over your head. Or settling in to watch your favorite television show only to have it interrupted by a loud subway train passing nearby every 10 minutes. Loud noises can make a huge difference in your enjoyment of your new home. These noises can also hurt your resell potential by making a home less desirable to other potential buyers. Make sure the home you’re considering isn’t subject to any loud or disturbing noises before you buy.

Buying a home on the edge of a city may seem like the perfect way to avoid the hustle and bustle of busy downtown life, but still be close to all the action. However, don’t assume that a house in a nice, quiet neighborhood, or even a slightly rural setting, will stay that way. Envision the future when you buy, and make sure that the home you’re buying will still be the home you want in 5 or 10 years.  

When you’re moving from a higher-priced area to a lower-priced locale, it becomes difficult to objectively judge home values. It’s human nature to judge values and prices based on what you know. Unfortunately, if what you know is significantly higher-priced than the area where you’re moving, you run the danger of overpaying. Everything looks like a great deal, and you may jump too quickly at a deal that isn’t as good as it seems. Recalibrate your sights based on the area where you’re looking; don’t bring your old property value guidelines along for the ride.  

Going into a home-buying experience, you’ve got certain expectations about price and real estate values. If you’ve done your homework before you begin shopping, you’ll have a good idea about home values in a a given area and will know if they’re in line with your needs. This will enable you to more accurately focus on a specific neighborhood that’s likely to have home values within your price range, and exclude neighborhoods where values are too high for you. However, when you’re targeting areas based on prices, be careful not to exclude a bargain in a high-priced area.

Many home features and amenities add value to a home, but it can be difficult to determine how much value a particular feature adds. When you’re looking at a home with a pool, for example, how much extra value does the pool add versus a home that doesn’t have one? How about a larger kitchen, or wall-to-wall carpeting? Sometimes you find a feature or amenity that you love and you may end up paying more than it’s worth. Make sure you determine the value of a home feature before you pay too much for it.  

Comparable home sales form one of the biggest factors in determining a home price. If comparable homes sell for a similar price, you know you’re getting a good deal. If comparable homes sell for more or less, it might be a key to negotiate further or evaluate why a home is selling below market. However, what appears to be a comparable home at first glance might not actually be fully comparable. Make sure you know a comparable home is actually comparable before you use it as the basis for your purchase price.