Buying a home is one of the most important decisions you’ll make in your life, so you have to make sure that all the time, money, and energy that go into it will be worth it in the long run.
In order to know if a particular home is your best option, you’ll need to be well-informed. Here are a few things you must know before purchasing the home you want:
The home’s value
A lot of factors go into the value of a home – location, features, and future developments in the area being just some of them. This is why you need to look beyond the exterior of the home and determine if it’s truly worth the price.
Working with an agent who’s familiar with pricing a home would be helpful. And of course, appraisals are indispensable – no financial institution worth its salt will give out a loan without a proper appraisal.
When looking for a home that doubles as investment property, you’ll need to do research on rental values in the area.
- Is the home close to schools or business districts?
- Are there many recreation spots in the neighborhood?
- Will there be new real estate developments in the area?
- Is it accessible?
Buying a home that will also be valuable to other tenants gives you the option of renting it out later on.
Check for outstanding permits on the property you’re considering. Most homes have had renovations, and some have been made with no permits. The absence of permits means that a professional didn’t inspect the work that had been made, and you’ll want to know if these renovations are sound.
The overall condition of the property
Hiring an unbiased inspector, preferably one from the American Society of Home Inspectors, will help you determine if there are issues with the home’s structural integrity. This will also detect parts of the property that need fixing.
It’s best to find out about problems with fixtures, pests, and the home’s foundations before making the purchase so that you can negotiate to have them fixed – at the seller’s expense.
Communities often have homeowners associations, or HOAs. You’ll need to find out how much the association fees are so you can factor these into your financial plans. You’ll also need to look into their rules and regulations.
Some HOAs are stricter than others. Will you only be allowed to paint the exterior of your house a certain color? Do they require all the homes in the neighborhood to adhere to a specific style? And so on.
Aside from your mortgage and association fees, you’ll need to know about related expenses such as property taxes and insurance. The cost of repairs that the seller and HOA can’t cover will also have to be included in your monthly budget.
With all these deductions in your income, you’ll have to see if you and your family can still lead acceptable lifestyle, and if you’ll have enough set aside for surprise expenses.
A home will be one of your most prized assets, and so it’s necessary to know what exactly you’re getting when you purchase one. If you’re ready to make the decision, feel free to call/text 760 622 5087 or click here to send an email.