Aside from Price, what other factors should I consider
when planning to purchase a home?
BEFORE YOU BEGIN SHOPPING,
IT IS HELPFUL TO SPEND TIME IDENTIFYING YOUR NEEDS AND
YOUR WANTS.
When touring homes you will find that there are many
beautiful homes on the market. There are two things
you must do before looking at homes:
- Find out from your lender the largest amount for
which you can qualify for to purchase a home. It is
very easy to become excited about features found in
homes out of your range.
- Complete a reality checklist. Take some time to
decide what features are "Requirements"
(location, basement, number of bedrooms or bathrooms,
eating space, architectural style, garage, etc.) and
which features are "Extras" (fireplace,
walk-in closets, wet bar, pool, siding, vaulted ceilings,
deck, landscaping, etc.). There are many different
features in homes that range from necessary to luxury.
It is easy to get caught up in the excitement of a
beautiful home loaded with amenities. It is important
that you select a home that truly meets all or most
of your requirements first and foremost!
As you tour homes, refer back to this list to make
sure the home meets your requirements. The extras should
only come into play when you are making your final decision
between homes that meet all or most of your requirements.
TAKE SOME TIME DRIVING AROUND
THE AREA. Choosing the right neighborhood
is as important as choosing the right house!
There are many factors to consider when selecting a
neighborhood that is right for you. Below are just a
few of the many factors. You may think of others that
are important to you. Please write them on your Requirements
List so they do not get forgotten.
SCOUT OUT THE NEIGHBORHOOD!
It is important that you scout the neighborhood
in person. You live in more than just your house. Talk
to people who live there. Drive through the entire area
at different times of the day -- morning, afternoon,
evening and late at night, as well as going during the
week and on weekends. Look carefully at how well other
homes in the area are being maintained; are they painted,
are the yards well cared for, are parked cars in good
condition? etc.
THE LOCAL NEIGHBORHOOD
The term "local neighborhood"
refers to an area wide enough to cover your residential
area plus nearby stores such as the "neighborhood
grocery store."
You want to be sure all essential shops and services
are located nearby. This would include grocery stores,
gas stations, dry cleaners, and convenience stores.
There should also be fairly convenient access to local
highways, major traffic routes, and mass transit.
If your local shopping center is in decline, it could
be an indicator that the local neighborhood is in decline,
too.Check to see if a lot of storefronts in your local
center are vacant or available for lease.If they are,
you might want to consider moving your purchase a few
blocks.
THE RESIDENTIAL NEIGHBORHOOD
Within your residential neighborhood, if
possible, buy on a road that is not used as a shortcut
between two busier streets. When choosing to buy a house
on a corner lot, take into consideration the street
traffic and safety for children. You might want to consider
buying in the middle of the block or on a cul de sac
instead.
NEIGHBORHOOD FACTORS TO CONSIDER
Look for things like access to major thoroughfares,
highways, and shopping. Listen for noise created by
commerce, roads, railways, public areas, schools, etc.
Smell the air for adjacent commerce or agriculture.
Check with local civic, police, fire, and school officials
to find information about the area. Look at traffic
patterns around the area during different times of the
day and drive from the area to work. Is the neighborhood
near parks, recreation centers, shopping, theaters,
restaurants, public transportation, schools, etc.?
SCHOOLS
Even if you do not have school-age children
and do not intend to have children, you must pay attention
to the local school system. That is because when you
sell the property, many of your potential buyers will
have concerns of this nature.
You will want to know if the local schools are overcrowded.
Take a drive around and see if there are auxiliary trailers
outside the local schools. Call up the local school
district and see if elementary aged children always
attend the school closest to their home. If not, ask
why. Are there enough schools to support the local population?
If not, are there plans to build new schools? How will
building new schools affect local property taxes?
You should also check to see how local students score
on the standardized tests. You can ask your agent about
these things, but you should also get the local phone
numbers so you can ask yourself.
LOOK TO THE FUTURE
Although you are buying a home to suit
your needs right now, there is a good chance you will
sell it someday. Keep in mind the following suggestions
to maximize your re-sale value.
BUYING A HOME WITH A VIEW
Homes with a pleasant view of the horizon
often sell at a premium above similar homes without
the view. However, if a view is important to you, buy
it mostly for your own pleasure and not as an investment.
Though you may place a considerable dollar value on
the view, future buyers may not be so like-minded. It
may take you longer to find a buyer when it comes time
to resell the house. Or you may end up dropping your
price to more nearly match other sales prices in the
neighborhood.
In short, if you are buying a house with a view, try
to pay as little extra as possible. Otherwise, you might
not get your money back.
LOT AND LANDSCAPING
Even though most real estate value is usually
concentrated in the building, the lot is important,
too. Obviously, it should be as level as possible.
Yard sizes are smaller in modern homes than in older
homes, but there should still be a decently sized front
and back yard. Do not buy a house where the entire back
yard is taken up by a swimming pool, for example.
Do not purchase an over-landscaped property, either.
You would normally pay a premium for that, which you
may not be able to recover when you sell. You will get
your best value if the house is moderately landscaped
or under-landscaped for the area. You can always improve
the landscaping during your ownership by improving the
grass and adding bushes and trees. Just do not spend
too much.
HOUSE SIZE
In each residential neighborhood, houses
will vary in size and rooms, but they should not be
too different. If resale value is an important consideration,
you should not buy the largest model in the neighborhood.
When determining market value, the homes nearest to
yours are most important. If most of the nearby houses
are smaller than your house, they can act as a drag
on appreciation.
On the other hand, if you buy a small or medium house
for the neighborhood, the larger homes can help pull
up your value. This is one of those times where determining
your "wants" versus your "needs"
can be extremely important. Buying what you need in
a more prestigious neighborhood may provide more financial
reward than getting what you want in a less desirable
neighborhood.
BEDROOMS AND BATHROOMS
Three and four bedroom houses are the most
popular among homebuyers, so if you can stick in that
range you will have more potential buyers when it comes
time to resell. Five is okay, too, as long as you do
not have to pay too much extra for the additional bedroom.
There should always be at least two bathrooms in a
house, preferably at least two and a half. One bathroom
with a place to wash up for day-to-day visitors, one
for the master bedroom, and at least one to be shared
by the other bedrooms.
BE SURE THERE IS PLENTY OF CLOSET SPACE FOR ALL YOUR
STUFF! DON'T FORGET SPACE FOR LINENS AND TOWELS.
CLOSETS, GARAGES AND LAUNDRY
Walk-in closets are extremely desirable
for the master bedroom. For the rest of the house, just
be sure there is plenty of closet space. Don't forget
space for linens and towels.
Garages add to the resale value and you should always
make sure to get at least a two-car garage. Lately,
three-car garages have become desirable in some areas
of the country.
The laundry facilities should be located somewhere
convenient on the main floor of the house, but not in
a place it will create an eyesore. Think about whether
you want to walk up and down stairs when carrying loads
of laundry.
THE KITCHEN
Family activity centers around the kitchen,
so this is the most important room of the house. Larger
kitchens are better, and they should be provided with
modern appliances. Obviously, the dining room and breakfast
nook should be located adjacent to the kitchen. In newer
houses, the family room should also be extremely close
to the kitchen.
There should be easy access to the back yard, as there
will be occasions for barbecues and outdoor entertaining.
In addition, it should be a short trek between the garage
to the kitchen so hauling groceries in from the car
does not become a horrendous chore.
FIREPLACES
The only room where you absolutely have
to have a fireplace is the family room. A fireplace
in the living room may be nice, but you pay extra for
it and will probably rarely use it. At best, it serves
as a focal point of the living room, but does not add
much in real value.
SWIMMING POOLS
Swimming pools do not provide as much added
value as they once did. Safety issues about families
with younger children have become more publicized than
in the past, so families with small children tend to
avoid homes with pools. As a result, having a pool may
actually reduce the number of potential homebuyers when
you try to resell the home.
WE SUGGEST THAT YOU BUY A HOME WITH A POOL FOR YOUR
OWN ENJOYMENT, NOT AS AN INVESTMENT.
