5 TIPS FIRST TIME HOME BUYERS NEED TO KNOW
July 30th, 2014
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First time home buyers have so many things to consider as they enter into their exciting journey! It can be so easy to be pulled in many different directions and to lose sight of the things that really matter in your home search. Here are 5 key items that you should consider before and during your search:
1) Make a List. You can make a column of your Needs and your Wants in a property. Then as you go about your home search you can bring the list (maybe even pull out a trusty clipboard to write on) and check off the items to see which home meets the most of your criteria. This will help you think logically throughout the process. Even though your final decision might be far from logical, at least you attempted!
2) Find Out About the Neighborhood and Location. What types of homes are in the neighborhood? How well are the houses and yards cared for? How well are the common areas taken care of by the Homeowner's association? Are there many renters in the neighborhood? Renters do not have the greatest reputation and might make the appearance of the neighborhood deteriorate. Is there a neighborhood pool? Are there parks and bike trails? Talk to a few neighbors and see what they have to say about the neighborhood. Is it close to shops, schools, your job, etc.? These are a few questions to ponder about the neighborhood and location, just to get you thinking about the aspects that are important to you in a neighborhood.
3) What will the resale value be like? Again, you will need to think about the neighborhood you purchase in. Buyers look for good schools (even if you are single or do not have kids, you need to find out about the schools for your own resale value). How long will you be in the home? If you are buying in a seller's market and buy on the higher end of what the home would normally sell for, you might not make much of a profit or you might owe. This will depend on how long you live there and what the real estate market is like at the time. Usually, a great rule of thumb is to buy a lower priced home in a more expensive neighborhood. This will help with resale values because you can usually trust homeowners with more expensive homes will take care of their property and that there will be rules from the Homeowner's Association that enforce at least the curb appeal of the homes in the neighborhood. Do not over update a home you buy. If the upgrades you put into a home far exceed any other home in the neighborhood, chances are you will be losing money when you resale.
4) Staging is a Sales Technique, Do Not Get Sucked In. Sellers and the Listing Agent go to great lengths to make sure the home is visually appealing to buyers. Remember you are buying the house, not someone else's great decor and interior design skills. You could of course try to buy all their furniture and decor, but that is not very common. Look at the details of the home, the quality of craftsmanship, how well the home has been cared for, how well the space will work for your family and your furniture/decor.
5) Look at the Tax Rate and Homeowner's Association fees (HOA). Even if you pay off your home you will still have to pay taxes and HOA fees. The tax rate can greatly affect your monthly payments if you have an escrow account or your yearly cost if you pay your taxes annually. With newer neighborhoods you typically see higher tax rates because the Municipal Utility District (MUD) is a newer infrastructure. As the neighborhood ages that MUD tax will begin to decrease.
A Realtor will be an invaluable asset as you begin your home search. Rely on their experience and knowledge to guide you through the process. Best of luck on your home journey!
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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
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