What to Look for when Buying a House
Wondering what to look for when buying a house? This major life milestone can be as stressful as it is exciting. However, having a firm grasp on what you want and what you need can make the process go more smoothly. It also helps to have an experienced realtor on your side.
Whether you’re a first-time home buyer or are no stranger to competitive markets, every buyer should consider some key aspects when pursuing homeownership. Here’s what to look out for when house hunting.
1. The Right Purchase Price
Nothing could be more important in buying a new home than setting a budget. Go into the viewing process with a firm idea of how much you are willing to spend and whether you’re willing to do the work on a fixer upper.
A firm price range is in order so that you don’t set your sights too high (or too low). It’s also recommended to have a down payment ready and to have your home loan pre-approved, so that no other potential buyer can get an offer in ahead of you.
2. The Right Location
While it’s common sense that potential homeowners will want to choose the best possible locations, there are many factors that go into finding the perfect spot: Is the neighborhood safe? Is the road busy?
Try to get to know the area, especially during peak traffic hours, and consider how it may affect your commute. Also consider the property’s distance from the nearest grocery store, your kids’ schools and other frequent destinations.
3. Affordable Taxes and Reasonable Cost of Living
Once again, location is key in your home search. Neighborhood safety is important, but taxes also affect your budget. Be aware of property taxes in the area, including the recent history of property values in your new neighborhood.
These costs will figure into your future escrow payments that affect your monthly payments for your mortgage. If you’re moving to a new state or a larger city, include potential increased sales taxes — along with a generally higher cost of living — in your budget.
4. Your Must-Haves
It’s important to be cognizant of outside forces such as neighbors and location, but this is your house. Basic stats like number of bedrooms, the floor plan, and total living square footage should be on top of mind. Minimalists might still want a big yard for a furry friend, while young couples often like to plan for a family.
With an investment this big, planning is key, but so is finding an option that excites you. Be clear and firm with your real estate agent about what you’re looking for in terms of style to maximize your efforts and find your dream home.
5. Property Size
Consider what you want to use your property for during the home buying process. Concerns such as pets are important, but there are other uses for yard space, such as pools, gardens and sheds for hobbies or storage. If outdoor space is integral for you, make sure you communicate this need. Also remember that the size of your new house and property dictates the amount of time it takes to clean and maintain; sometimes bigger isn’t always better.
6. School District
If you have children, the all-important home location is closely tied to education. You’ll want to scope out nearby schools, potentially choosing a neighborhood based on its educational district. If you’re not a parent, then you don’t have to worry about nice-to-haves like this. However, you may have other things on your home purchase wish list!
7. Amenities
As technology becomes a larger part of every aspect of existence, many prospective homebuyers are seeking smart home features. Other borrowers are looking for a house that comes with landscaping services or other benefits that could help save time and reduce maintenance. Keep these in mind as you search for your prospective home.
- Tip: Did you know that having a smart home security system can potentially lower your homeowner’s insurance premium?
8. HOA Association
Homebuyers must decide if they want to seek a house that falls within a homeowners’ association, which can come with dues, neighborhood standards and regular meetings. While there are many benefits of an HOA (such as maintaining your home’s value), some prospective buyers pale at the idea of submitting every change with an overseeing board. Having a clear idea of what type of management you want (if any) can help eliminate unlikely options.
9. Property Condition
It’s rare to find a home that doesn’t need just a bit of TLC (unless you buy a new construction home). However, older homes that haven’t been maintained may need significant renovations and upgrades to be up to your standards.
While first-time buyers may want to save a buck and make compromises on condition, they should still walk into the situation with eyes wide open. Make sure a home inspection is in the contract and that you can negotiate repairs or have a safety clause to back out of the deal if the home inspector finds too many problems.
10. Its Potential Loan Type
Different homes qualify for various loan types. For instance, a home that exceeds the Fannie Mae/Freddie Mac limits require a Jumbo Loan, whereas first-time homebuyers who buy within the federal loan limits can qualify for an FHA loan. Find a mortgage lender who can advise you on the best price range, mortgage rates, and help you get the best interest rates through paying down points.
Homes that are under 2,000 square feet and located in rural areas may qualify for a USDA loan, which is one of the best loans for bad credit. This loan is excellent for starter homes and for people who need to move into an affordable single-family home.
- Tip: Getting a mortgage preapproval is a crucial step before looking for a home. Not only do you know your top dollar, but your approval process will be faster, which is crucial in a competitive housing market.
There are many things to look for when buying a house, whether you are looking to buy your first home, an SFR property or an investment property. Marketplace Homes is ready to answer your questions, no matter what you’re looking for in your next purchase. Reach out to us today to find the perfect home.