Choosing a home is a huge decision, and people often make some big mistakes when they select a house to purchase. While a good real estate agent can help steer you toward a house that truly meets your needs, there are some aspects of home buying that are important to consider. Here are just a few tips that might keep you from buying the wrong home.
You already probably know how much of a mortgage payment you can afford, and you probably also have accounted for the costs of a down payment and closing escrow. However, there are more expenses to consider and these can really add up. For instance, you definitely need to think about the property tax rates in your new neighborhood. In some states, you might only pay about half a percent of the purchase price for this tax, but in California, you will pay 1% of the price you paid for the house. California has a median home value of about $400,000 and this means you probably will pay more than $4,000 each year in property tax. Add to that your monthly homeowner association dues and insurance costs, and this can be a lot of money each month.
You not only have to like the actual house, you really need to like the location. Liking the neighborhood on that first visit isn't enough, either. Remember, you home will always be at that location and while the interior and yard can be changed, you cannot move it away from a busy street. If it is across from the local elementary school, that school will be there long after your children have headed off to high school and college. If it backs up to the freeway or a noisy road or is located in the flight path of a major airport, this also cannot be changed. You also need to think about the distance from your workplace, from grocery stores, drug stores and other places you frequent.
We have all seen people on home buying shows walk into an ugly, outdated home and simply fail to see the hidden potential. Decor can always be changed and most decorative changes are fairly easy to make, although they are sometimes quite costly. However, you might find an amazing updated home that looks move-in ready and want to make an offer. Step back for a minute and think. Does it have enough bedrooms and bathrooms? Does the kitchen have plenty of good cupboard space and workspaces? Are the closets big enough? The bones of a home and the quality of the home are far more important than how it looks.
Think about the resale potential of your new home as well. Of course, you might be planning to live there forever, but realistically that might not end up being the case. Homes on or near noisy, dangerous roads are harder to sell. Even you have no children, if you need to resell the house, it's easier if you are located in a top school district. If the layout of the house is odd or very chopped up, this is also difficult for resale as buyers typically want a more open floor plan. A house with just one bathroom is also a very difficult place to sell.
The search for an ideal home begins by contacting a real estate expert, such as the agents at 1st InSite. No matter what city you like or budget you have, they can help you find a fantastic home. They are highly knowledgeable about the real estate market in the East Bay and can find Alamo real estate, Danville real estate, Moraga real estate, Walnut Creek real estate or any other East Bay town or city.
You already probably know how much of a mortgage payment you can afford, and you probably also have accounted for the costs of a down payment and closing escrow. However, there are more expenses to consider and these can really add up. For instance, you definitely need to think about the property tax rates in your new neighborhood. In some states, you might only pay about half a percent of the purchase price for this tax, but in California, you will pay 1% of the price you paid for the house. California has a median home value of about $400,000 and this means you probably will pay more than $4,000 each year in property tax. Add to that your monthly homeowner association dues and insurance costs, and this can be a lot of money each month.
You not only have to like the actual house, you really need to like the location. Liking the neighborhood on that first visit isn't enough, either. Remember, you home will always be at that location and while the interior and yard can be changed, you cannot move it away from a busy street. If it is across from the local elementary school, that school will be there long after your children have headed off to high school and college. If it backs up to the freeway or a noisy road or is located in the flight path of a major airport, this also cannot be changed. You also need to think about the distance from your workplace, from grocery stores, drug stores and other places you frequent.
We have all seen people on home buying shows walk into an ugly, outdated home and simply fail to see the hidden potential. Decor can always be changed and most decorative changes are fairly easy to make, although they are sometimes quite costly. However, you might find an amazing updated home that looks move-in ready and want to make an offer. Step back for a minute and think. Does it have enough bedrooms and bathrooms? Does the kitchen have plenty of good cupboard space and workspaces? Are the closets big enough? The bones of a home and the quality of the home are far more important than how it looks.
Think about the resale potential of your new home as well. Of course, you might be planning to live there forever, but realistically that might not end up being the case. Homes on or near noisy, dangerous roads are harder to sell. Even you have no children, if you need to resell the house, it's easier if you are located in a top school district. If the layout of the house is odd or very chopped up, this is also difficult for resale as buyers typically want a more open floor plan. A house with just one bathroom is also a very difficult place to sell.
The search for an ideal home begins by contacting a real estate expert, such as the agents at 1st InSite. No matter what city you like or budget you have, they can help you find a fantastic home. They are highly knowledgeable about the real estate market in the East Bay and can find Alamo real estate, Danville real estate, Moraga real estate, Walnut Creek real estate or any other East Bay town or city.
About the Author:
Madeleine Glazier enjoys blogging about the real estate industry. If you are searching for Danville real estate agents, or to find Danville homes for sale, please go to the 1stInsite site today.