5 Areas First-Time Home Buyers Overlook
As a first time home buyer, you are stepping into unknown territory. Even if you’ve tried to do your homework first, there are still many areas to consider that most new home buyers completely overlook.
Then when it comes time to sell, to move up to a nicer home, or a nicer area, or an area where prices are rising, it may be too late to rethink your original purchase decision.
The fact is, many buyers don’t think about these important areas until they have already purchased their new home…
Area #1: What is the Resale Potential.
Many first-time home buyers are so involved with finding their dream home, they don’t think about the day when they will want sell and get a bigger or better home. Which means they will probably be selling their first home at some point. That’s where unexpected problems can pop up.
Without understanding the movements of the market in your area, the state of and access to quality education nearby, and even major construction or project work from the municipality you live in, you could find yourself in a position that in order to sell, you have to lose money in the process.
Area #2: Not being prepared for inspecting the home.
It’s easy to get all caught up in the excitement when you think you’ve found your dream home. But then as you start doing a thorough inspection of the property, including the features and benefits of the home, it can be easy to give it a look, while being so excited that you don’t remember to inspect the most important features.
This can easily be remedied by making a master list of everything you want in your home, and the status or condition of each of these areas. Don’t let emotions get the best of you. Take your time, and make sure you have your bases covered.
Area #3: The staging setup may be different than yours.
Realtors hire “staging” experts to decorate a home for sale so it wows the buyer, and gives them the nice feeling of a homey environment. However, it’s likely that your idea of how you want the home laid out with furniture and other items will be different.
So do your best to try to look at the home the way you envision it, set up with your style and features that you know you want. And do your best to disregard the way the “staged” home looks.
Area #4: Not having enough cash on hand.
Some first-time home buyers save and save for their down payment to get into their first home. The problem with this is, there will be many other expenses in the first months of home ownership, including buying furniture or having your existing furniture moved, putting down deposits for services, fixing any repairs needed and more.
The next problem is that while getting all this done, many find themselves tapped out for cash. That means no more Emergency Fund for unexpected expenses, and possibly having some rooms remain empty for months or longer.
Area #5:Not investigating the neighborhood thoroughly.
Just because you think the area your new home is in is the perfect neighborhood for you, it pays to dig deeper into the facts. Does one of your neighbors have young adults who have a rock band? Guess what, they will probably practice every day. And how well do you know the rest of your neighbors?
If you don’t have an association or code enforcement, and you have a bunch of renters in your area, how well will your neighbors take care of their homes and surrounding areas? You can easily go to your local city or county, and see first hand how many people in your area own, and how many rent. And don’t forget about the landlords, in some cases they can be worse than bad tenants. Do your homework first, research for any complaints filed in your area, so you don’t have any surprises.