Updated: Apr 30, 2020
1) Price and Affordability
The difference between price and value is huge. If the value of the home you are viewing does not match the price, it is not a viable option. However, it takes in-depth research of the market and home-types to really answer this question. Additionally, it is important to have a realtor and mortgage lender that you trust through this entire process.
Furthermore, buying a home is one of the biggest purchases of your life and it is worth taking a deeper look into the market. A couple of late nights is well worth saving thousands on a home purchase. If you do not prepare for buying your home, your financial health could be destroyed for years to come. With this said, it is imperative that you understand the price and value of the home, as well as how much you can afford.
2) Area
When you are buying a home, it is important to have a good knowledge of the surrounding area. While the home you plan to buy may not be your forever home, more than likely, you will be in this home for years to come. In 2018, the median length that homeowners lived in their home was about 13 years.
If you are going to live in an area for over a decade, it is vital that you enjoy the area you live in. When finding the right home, look at the schools, understand the crime rate, and find local restaurants that you would frequent. Home-ownership is more than just mortgages and payment option but the community that surrounds you.
3) Renovations, Problems, and Home Inspections
Renovating your home is perfectly normal. However, unexpected renovations are an entirely different story. When buying a home, you should know how much money you want to pour in to for renovation and how much money is too much. If you have been planning to buy a fixer-upper and renovate your home, make sure you have the money set aside or a payment plan that fits your budget. On the other hand, if you are not planning on putting any work into your home, make sure you evaluate the potential problems and issues that could arise in the near future.
Evaluating potential problems is a make or break moment for home buyers. Most people purchasing a home do not have hands-on experience with home inspections. With this said, it is important to ask the right questions and know what the biggest potential issues could be. When the home inspector comes to the home, it is imperative that you ask, “what is the biggest financial burden I will have to carry for the next decade?” This will give you an understanding of the home’s biggest need. From there, you can assess whether the home purchase is worth it. All in all, whether you are looking to renovate or not, any home buyer should evaluate the health of their home and understand the 2nd tier costs that come with home ownership.