Tuesday, December 8, 2015 / by Marion Franke
Top 3 Things Experienced Home Buyers Already Know
Buying a home is a major undertaking. When the process is totally unfamiliar, the tasks can be daunting. Even experienced home buyers may get surprised by new developments in the current home buying process.
However, there are a few things that never change. Two major things are making a good selection about which real estate agent will represent you and the absolute necessity of a good inspector. Other pitfalls will snag you if you aren’t careful. They fall into three different categories
Crystal Ball about Future
Experienced home buyers know your home purchase is not limited to the walls surrounding the home. A savvy buyer looks outside the immediate community to examine the future traffic patterns, population trends and homeownership rates. For example, when a community is trending toward investors purchasing homes for lease, a declining value can be expected.
Another factor often overlooked by home buying novices is thinking about how adjacent undeveloped land might be used. A wonderful location backing up to a large, pastoral field can quickly be transformed when a big box retail store moves in. Smart buyers are wary of any property on the perimeter of a development unless they can feel confident they will be happy with what will come later.
Compromising Important Things
Seasoned home buyers search with a no-compromise attitude toward certain things important to them. For example, while a couple may live very comfortably with a 2 bedroom home, they recognize this smaller number of bedrooms greatly lowers the number of buyers interested. It is what is called “functionally obsolescent”. In today’s market both 3 bedroom homes and 2 car garages are pretty much obsolete in some price ranges.
It is important to have vision about the value. Putting up with some ugly wallpaper in order to get a soundly built home in a highly-desired neighborhood makes more sense to the visionary buyer compared to a well decorated home without the “bones” of the house needing a cosmetic fix-up.
Selecting with Ego Instead of Math
The thrill of owning a home often blinds the first time home buyer. They can be charmed by the appearance and totally miss the expensive important upgrades. You may want to invite all your family and friends to visit immediately and want everything to look perfect. However, perfection comes at a price.
Competitive contracts are one of the potential consequences of a dolled up house in a great location. When more than one buyer is trying to get this “cream puff”, sometimes emotion can overrule logic. While paying more than necessary is not a tragedy in an upwardly mobile marketplace, making pragmatic, mathematical decisions yields more equity when it comes time to sell.
Your home is more than a place to put your money. It is a place to put your personality and preferences, your family and your memories. When you can look back on your home purchase decision with pride it will add much enjoyment to the process.