Buying a house is a complicated move in itself. There are so many factors to consider that even an expert in real estate can’t always determine based strictly on the past and present data. This information is intended to help you make an informed decision when choosing your dream house.
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Location Matters
You may have heard this a million times while hunting for your future home, from agents, friends, colleagues, experts and lenders. So, why does the location of the house matter? What does it take to transform a dull neighbourhood into a hot spot in the real estate market? The answer is time, demand and supply.
A good location is an upcoming area that has seen significant growth in the past few years and one that has chances of the home values appreciating in the near future due to various factors such as jobs and population growth. And if you want to become a part of such a neighbourhood, you will have to snatch a house at its lowest price point as early as possible. So, buy a decent house in the right location.
Walkability Criteria
A desirable house means being at a walkable distance from the workplace, major shopping centres, schools, transportation, and other places that you want to go every weekend. Major cities offer a wide range of walkable experience which equates to more demand than supply of houses. Other properties may be ‘somewhat walkable’ or ‘reasonably distanced’. People pay more attention to these criteria when they are considering the home purchase and you should too. Buying a house that is in a ‘walker’s paradise’ means you could walk to school, bus, park or pick up groceries on the way home.
Additionally, properties within the walkable area offer higher returns when it is time to sell. In fact, median house values in this area have appreciated significantly, around 150 per cent in places like New York and Austin since 2000 compared to less walkable regions. The data suggests that “Walk Score” is a strong signal that your life in that house is going to get as easy and convenient as possible.
Aftermath Condition
You have spent countless hours browsing the listings on the internet and finally zeroed in on one house. You have gone to open houses, looked carefully around, talked to the agents and finally ready to seal the deal. You have found your perfect home or at least it seems to be perfect. But if you are not sure, you have every reason to be because problems emerge from underneath the flooring, behind the walls and inside the invisible plumbing.
There may be a part of the roof that is cracked, chimney crown may be in bad shape or the drywall around the shower-head is softening. Had your home inspector failed to catch these defects, you would have stuck with a huge repair bill. However, you must also check home and contents insurance quote policy to save yourself from a massive headache. This is why it is important to inspect the house thoroughly before signing the papers.
Financing Options
It is really surprising that many people spend months after months looking for a perfect house, but devote only a few minutes to find the right financing option for their needs and budget. In fact, most of them just believe what their agents or mortgage brokers suggest. If you want to save money, well most of us would like to, then you need to comparison shop with various lenders.
Some of the options may look attractive at first but may carve a big hole into your financial portfolio over time. For example, adjustable-rate mortgages or ARMs unlike what most lenders recommend may not be the right choice in all cases. Here, the interest rate and therefore monthly payment adjust each year after a set period and that uncertainty or expenses may cause you anxiety. They are also more complicated than fixed-rate mortgages if you are planning to live in the house for a long period.
Amenities Around
When you are shopping for a house, it is not just the house that you should be looking at but the quality of facilities surrounding it as well. Often times, people want to reside in a high ranking school district. Generally speaking, a good school can contribute significantly to the value of the home as well as the quality of life.
It is easy to see why. Once people with children learn about the school, demand for homes in that area will increase so is the notion that it is a safe and well-to-do neighbourhood. In other words, great schools, nice parks and buildings are what you should be looking for along with the potential property to live in. It is hard to do this on your own. Fortunately, there are plenty of online tools to compare and learn.