What to Look for when Buying A Home for the First Time

Are you trying to buy a home for the first time in US, UK, Canada, Australia or any of the top European or Asian countries and you’re thinking if you’d need a realtor or you can buy your house without any agent.

Yeah! You can buy houses that are listed for sale by the real owners, even the ones that are near you and you can as well outsource real estate managers to get the job done for you.

 

However, other things that are important are the steps involved, the process of buying a house, how long it will take you to finalize the deal in any country you’re buying from since there are regulations guiding the buying and selling of landed properties.

 

In US for example, it can take less or more than three depending on several variables like, buying with loan or cash etc and to the process, you list the qualities you want your house to have, viz: landscape, bedrooms, garden, amenities etc depending on your taste.

There are much things people can simply look out for when buying a house.

 

After that, you budget how much you want to spend, get qualified and approved for credit in mortgage bank or buy cash, contact the seller or agent and start making offer and after offer is accepted, make payment and start working on the transfer of documents.

 

The real estate business in US has been profitable in this last decade, for example, the home buying market in Austin, Texas (and the Austin-Rock Round Metropolitan Statistical Area) reached record levels to close out the year 2017.

 

According to information provided by the Austin Board of Realtors, the following is a snapshot of the housing market for Austin:

 

Single-family homes reached 2,653 for December 2017, a 12.6 percent increase over the same-month sales in 2016.

The median price of homes for the Austin-Round Rock MSA was $310,000 as of December 2017, an increase of 7 percent over December 2016.

 

There is no better time to begin the process of buying a home than today. Working with a local realtor and their team of qualified associates can help you discover your forever home, a place to raise your family and create lifetime memories.

 

Just like I said, there are many parameters to consider when searching, selecting and buying  your dream house but the most important factors an average homebuyer should consider are the following.

 

How Much House Can I Afford?

Determination needs to be made as regards to the house you can comfortably afford without going into too much debt.

A home represents one of the largest single assets Americans own and too much mortgage can turn a dream home into a long-term financial burden.

 

You can check out online for the best states to buy house from in each country to get cheap house.

Some first-time home buyers like to buy their first apartment in California or New Jersey because there are more less expensive and affordable properties there and the market is competitive.

 

An analysis of your monthly income (before taxes), expenses, loan type (i.e. fixed, ARM, 15-, 30-year, etc.), down payment, and other debt information can give you a good sense of the mortgage you can apply for.

 

If you don’t know how much mortgage you can qualify for, how much you should spend on a house based on your income, there are mortgage affordability calculator to help you calculate how much mortgage loan you can afford and how much you should spend on a house.

 

You’ll input your income, for example, if you’re earning $50,000, $100,000, $200,000 per annum, it’ll suggest reasonable budget  that will not affect other aspects of your life as a rule of thumb.

 

Another tip: pre-qualify for any mortgage you seek before discussing a home purchase with a realtor. You can also use loan prequalification calculator sites

 

Should I Fix-it-Up or Buy New House?

The proliferation of home improvement shows on media such as HGTV and the DIY channel have fed a desire in many to attempt to buy and renovate older homes. Words like ‘open concept’ and ‘cathedral ceilings’ seem to capture an inspire a desire to tear down the old and rebuild new.

 

Generally, it’s not advised to buy fixer upper home as a first time home buyer and a low income  earner as the cost of fixing an old house, renovating the damages and restoring it could cost you high budget if you don’t do your home work very well before making an offer to the seller.

 

Get an home renovation cost estimator spreadsheet or use existing remodeling cost estimate template that’s having similar variables to the old house you’re buying to get average cost to completely renovate the apartment.

Do both the interior and exterior makeover, gut the rooms to your taste or better, use some softwares and mobile apps to calculate and estimate average improvement cost per square foot.

 

However, What you choose should be based on where you want to live, the type and style of home you desire and the cost to renovate it.

As an example, a recent report put the cost of renovating a pre-1950 home of 2,000 square feet at $320 per square foot versus $280 a square foot for a post-2000 built home, a difference of $80,000.

 

So, for example, you’re buying 100 year old house, the cost of repairing the wrecks is lightly going to be more compared to when you’re buying modern house.

The buying cost and the remodelling cost altogether can even equate the budget for a new residential home construction when you do the breakdown properly.

 

Therefore, you need to weigh the cost of restoring old house from start to finish, buying relatively new house with modern architecture and let’s say not more than 10 or 20 years old.

Compare this to when you go for a new construction and make final judge on whichever one you’ll get the most return or value.

 

Location: How Close/Far Can I Be from Work?

You may want to ask, why is location important when buying a house ? In real estate business, location is one of the most important factors in pricing and making fast sales.

 

As an employee, you need to decide on your priority, whether cost or location should be considered first. Choosing your new or next home, you should account for the distance and amount of time it’d take you to get to work unless you’re changing jobs before or after closing on a house.

 

Sitting in traffic for an hour or more doesn’t make for a pleasant start of the workday nor does it add to your quality of life when rushing out the door at 5 or 6 pm, to catch a child’s school event or spend quality time with the family.

 

If you are not one of the fortunate work-from-home or telecommuters, your daily work commute is a factor to consider.

 

What’s in my Neighborhood (Stores, Restaurants, Community Centers, etc.)?

In addition to choosing the right neighborhood for your commute, you also need to consider the proximity of certain amenities to your new home.

Are you ok with driving a mile or two to do your grocery shopping or visit your favorite restaurant? How close to the city’s cultural center do you need to be and how important is that proximity?

The answers to these types of questions which should be discussed with a realtor can make a difference in where you choose to live.

 

To complement the checklist, there are other determining factors of the house to choose depending on personal preference and some conditions of living. Some of them are:

 

  • The age of the building as we’ve rightly said and some associated risks.
  • The architectural design and aesthetics of the building
  • The size of the house, depending on the size of your family or your taste of an ideal house
  • The  layout of the property and the ideal space you need
  • The potentials for expansion and addition of other structures.
  • The proximity of apartment to the children’ schools
  • The crime rate of the environment or neighbors’ Characters
  • The cost of maintaining the property and other costs such as taxes and dues.
  • The potentials in flipping the property fast and making good profits.

 

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Chloe Marie enjoys dining out with her husband, getting involved with community events and taking dance lessons. When she’s not doing one of these activities, you can either find her cooking her favorite foods in her newly upgraded kitchen or snuggling on the couch with her dog and reading a good book.

2 thoughts on “What to Look for when Buying A Home for the First Time”

  1. One important thing is that when you find yourself searching for a education loan you may find that you will want a co-signer. There are many circumstances where this is true because you could find that you do not possess a past credit score so the mortgage lender will require that you’ve someone cosign the financial loan for you. Good post.

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