Buying a first home can be a fantastic experience. It is, however, one that comes with a lot of responsibility and a million little decisions to make along the way. Below are the top five questions you should ask yourself if you think you’re ready to buy your first home this year.
The Commitment
One thing that first-time buyers tend to forget is that owning a home is a long term commitment. While most buyers understand that a home is more permanent than a rental unit, it can be difficult to grasp exactly what that can mean. You need to know if you’re ready for the commitment of spending 5 or more years in one place. If you think you’ll be pulling up stakes soon, you should also be considering homes with investment potential if you need to rent it out later down the line.
Hidden Costs
They’re not exactly hidden, but there are tons of costs that go into buying a home other than the ticket price you see online. Get familiar with the cost of insurance, security, utilities, closing costs and all of the other hidden fees that go with the purchasing process and homeownership. Even something as minor as an increased commute distance can make the costs add up over the years. While these costs should not discourage you from buying a home, it’s imperative to factor them into your budget.
Growth Potential
Does the house have the potential to deal with your growth? What happens if children or pets come into the picture? What happens if you decide you want a deck or a pool? Knowing what you’ll be able to do with the home is something all long-term buyers need to think about. At the very least, a buyer who can plan for the future knows under what circumstances moving will be necessary.
The Neighborhood
Learn about the neighborhood. Is there an HOA? If so, what are the fees and how serious are they? What are the crime statistics in the community or even the state? Some states have property crime and burglary rates significantly higher than the national average. Those crime rates will impact insurance rates, and you might need to install home security to make sure your home doesn’t get targeted. While you can change many things about a home, you can’t change where it’s located.
Resale Value
It’s rare that a family stays in a single home forever. Look into resale value before you buy. Are homes in the area rising in price? Are you on the edge of a trendy neighborhood? All of these factors might make your home a smarter investment.
For more advice on how to prepare and what to consider before purchasing, chat with a First Team agent. Reach out and we’ll connect you with an experienced agent to help you build a real estate strategy that fits your life, budget, and unique needs.
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Call us at 888-870-1142
