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BUYING A HOME - SELECTING YOUR HOUSE
Buying a house can be a wonderful experience and a source of great satisfaction, or it can be a financial disaster and a big disappointment. The final decision is a complicated one, often based on emotional as well as financial factors.
When selecting a house, first determine how much you can afford to spend and look only at houses in that price range. If you spend time looking at houses more expensive than you can afford, you may never be truly pleased with those that fit your pocketbook. The wise buyer will decide on the price range first to avoid the disappointment of not having "everything" in a house. Before you select a house, decide on the space you need and on location, community services, and many other of your personal wants and needs.
Consider how essential each item is to you and why. Your expectations may be based on past housing experiences and may even reflect your childhood home. Are these expectations compatible with your current lifestyle? If your job keeps you away often, you may not have time to maintain a large yard, trim hedges, or water the tomatoes. If you like the charm of an older home, but also want a good school and neighborhood for your children, you may have to settle for a ranch house in a newer neighborhood. In other words, you probably can't get everything you want in a house. Therefore, it's worth your time and effort to think about what you really need instead of what you would like.
Remember that a house requires time and attention. If you would prefer to use your free time doing something other than cleaning out the gutters or raking leaves, home ownership may not be right for you. Many new homeowners soon get the feeling that the house owns them, rather than the other way around. Houses require constant upkeep and attention. Repair people are not always available and they are usually expensive, making at least some do-it-yourself skills essential for most homeowners. Consider the condition of each house as you look.
Setting your priorities
What's Important To You?
When To Buy
When is the best time to buy a house? The answer is not simple. You need to consider more than just having the money for the down payment and monthly payments. What is the local housing market like now and likely to be in several years? Is it a "buyer's" or "seller's" market? What is happening or is likely to happen to the local economy? Are houses in the neighborhood increasing in value?
To Buy Or Build
Once you have decided to become a homeowner, the next decision is whether to buy an existing house or a new one, or to buy an existing house and remodel it. Many factors may influence your decision to buy or to build. These include: the supply of houses available that fit your family's needs, location(s) where you choose to live, and the amount of time you have available before you must move. The amount of time that you have to put into the house is a significant factor in whether to buy or build. Some families find that the many decisions that must be made in building a house are so overwhelming that they would rather not spend the time and energy it takes to build. Generally speaking, an existing house is less expensive than buying or building a new one.
Buying a Previously Owned House
Usually, there are more existing houses than new ones on the market. Statistics show that two out of every three buyers select an existing house. One advantage to buying an existing house is that you will be moving into a neighborhood where other houses are established so you can see and meet the people who live there. You also can get a good idea of what it will look like for several years ahead, and you can see if community services, shopping, schools, and churches are available and convenient. Another advantage is that many fixtures and furnishings, like draperies, drapery rods, window shades and storage devices, are often already in place and may be sold with the house. Landscaping is usually mature, so you may save time, effort, and money. When you are looking at older houses, be sure to have a thorough home inspection.
Buying to Remodel
Buying an existing house to remodel can have a number of pitfalls. The biggest one is overspending for the neighborhood or location. The value of adding on and major remodeling can be uncertain.
Except for maintenance and basic repairs to keep the house in good condition, improvements and remodeling should be made only for your family's comfort and satisfaction. The financial return may not warrant the expenditure for increased resale value, depending on the type of improvement.
In some cases, improving the house can increase its value. For example, adding a second bathroom to a three- or four-bedroom house likely will increase the value. Also, updating the kitchen and bathroom(s) may add to the house's value. However, adding a fourth bedroom in a neighborhood of two- or three-bedroom houses may not result in a higher selling price for your home. Also, a swimming pool rarely adds any value and will increase your maintenance costs.
New Houses
New houses may be better insulated, have more energy-efficient appliances and heating and cooling systems, have up-to-date electrical wiring and plumbing systems, and generally be more maintenance-free than existing houses. New houses usually have more modern facilities, such as larger bathrooms and closets and state-of-the-art kitchens.
Depending upon the location, taxes in newly developed subdivisions may be less than in some existing neighborhoods. Try to determine if the area where you want to build is appreciating. This will affect not only your property taxes but also resale value.
Building inspectors do not always catch problems with construction. If you are building, you need to pay close attention during construction.
Plan Ahead
One final factor should be considered. Few existing houses are designed to accommodate people with disabilities (mobility, vision, and hearing). Doorways are too narrow, floor surfaces are uneven, there are stairs, lighting is poor, or there is not enough space in the bathrooms or kitchen. Most people take for granted their ability to live and function easily at home. Yet four out of five people eventually will have some physical problem that could make it difficult to live independently. In addition, your elderly parents or other relatives may need to live with you in the future. A house that meets standards for accessibility can benefit many people. Consider ways to adapt the house should the need arise.
Avoid Regrets
To avoid regrets when buying or building, always be sure that: