4 Key Things to Consider When House Hunting
Rooftop Views has a great article which outlined four key things to consider when buying a house. From the list, I added more insights and tips to make your house hunting easier.
1) Location, location, location
Getting the best location is not all about the best capital growth. If you and your family will be living in that house, you have to consider the impact of the location to your lifestyles and priorities. Do you want to prioritize being located near good schools for your children or do you prefer to move closer to your place of work? Do you want a place near a park or do you prefer something closer to public transport? It would be a bonus if you can get everything that you wanted in a location, but in reality it’s not always that easy. It would be good if you can write down your priorities so you can easily narrow down your list of houses, to the one that best suits your needs and lifestyle.
2) The House
One of the most common mistakes first home buyers commit is buying a house that meets their budget, even if it doesn’t meet their own personal needs. In the end, when their circumstances had changed, they would regret not planning for the future. For instance, buying a 1 bedroom unit simply because it is the next best thing to owning a home. However, when you decide to have a child, that 1 bedroom unit will be too small. You will end up selling to upgrade, sooner than you anticipated.
Feel the home. Check if it meets your present and future requirements. How many bedrooms do you really need? Do you need a one car or two car garage? How many bathrooms do you need? Have a list of the features of a house that you like and need. You can concentrate in looking for that special house, instead of checking out all the houses that meets your budget.
3. Affordability
Getting a pre-approval of how much you can borrow is the best estimate of how much you can afford to buy. To add, it can save you a lot of heartaches from falling in love in something way beyond your budget. Once you know your pre-approval loan, double check it by considering your present circumstances, lifestyle and spending habits. Once your confident with how much you can afford to buy, concentrate on the properties within your budget. Don’t waste your time in the what if’s by checking more expensive properties. Don’t get tempted in buying more than what you can afford. A house should give you comfort and not be a burden.
4. Resale
Remember, your house is also your investment. It is an appreciating asset. After a few years, you may decide to cash in your equity by selling it. You may also decide into upgrading into a bigger home or move somewhere closer to your place of work. Whatever your reason is for selling, it all boils down to how much profit you can get from your home. Consider features and locations that would appeal to more buyers.
For instance, in this article in NYTimes.com a renter dismisses the idea of renting a ground level unit with a street front window. It’s not only a question of privacy but also the peaceful enjoyment of his space. He had a valid argument that if his window was left open, cigarette smoke can come in.
Don’t buy any too unique houses, it may appeal to you but you might get stuck with it for a long time. Buying something very different can narrow down the percentage of your potential future buyers. The less demand you have for your home, the lower the price you can command.
How about you, what are your priorities in buying a house? Have you considered these things when you bought your first house?
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POSTED IN: Buying a Property, Insights and Commentaries
1 opinion for 4 Key Things to Consider When House Hunting
Rate A Home
Aug 11, 2007 at 10:03 am
The buyer’s needs and wants are the most important first step in the transaction. On-line wish list that generate leads from your personal web site are growing in popularity by agents to find the buyers true needs. The best wish list programs generate wish lists for both the buyer and the agent via e-mail as a guidance tool in the home search.
But to really “narrow down” the choices, a buyer’s home rating program and walk through checklists become the ultimate tools to locate their dream home. By rating 5-10 features in each home the buyer tours, then combining and calculating a couples ratings will determine the best home to meet both their needs. The emotional approach of buying now becomes a due diligence approach to their largest investment in life.
Duane
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