What Kinds of Things Should I Consider When Purchasing a Home?

Determining your Needs and Wants

Once you have been pre-approved for a loan amount you will need to start looking for a home that meets your needs. Your home should match your lifestyle, with spaces and features that appeal to everyone in the family. Before you begin looking at homes, make a list of your priorities. Should the house be close to certain schools, a job, or public transportation? How large should the house be? What type of lot do you prefer? What type of amenities are you looking for? Establish a set of minimum requirements and a "wish list." Minimum requirements are things that a house must have for you to consider it, while a "wish list" reveals things that you would like to have but are not essential.

Neighborhood

Selecting a community can be one of the more difficult decisions of the home buying process. Many people choose communities based on schools. You can get information about school systems by contacting the city or county school board or the individual schools themselves. Your real estate agent may also be knowledgeable about schools in the area. Other things to consider are access to shopping and public transportation, closeness of libraries and public parks, and whether you prefer an urban or a rural setting. When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood that you feel comfortable with. You can also contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information.

Comparable Sales & Property Tax Information for the Area

If you are wondering how much homes are selling for in certain communities your real estate agent can give you a ballpark figure by showing you comparable listings. Comparable listings are houses that have recently been sold that are similar in style, age and location to the home you are considering. Although comparable listings do not meet the standards of an appraisal they will give you an idea of the price of homes in the area. The total amount of the previous year's property taxes is usually included in the listing information. If it is not, ask the seller for a tax receipt or contact the local assessor's office. Tax rates can change from year to year, so these figures may be approximate. Keep in mind that your mortgage interest and real estate taxes will be deductible.

Old vs. New

You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more character, and have lower property tax rates. People who buy older homes, however, should keep in mind that they are responsible for maintaining their home and making repairs. Newer homes tend to use modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.

Questions to Ask & Things to Look for When You Go Home Shopping

In addition to comparing the home to your minimum requirements and wish lists, you should consider the following: Is there enough room for both the present and the future? Are there enough bedrooms and bathrooms? Is the house structurally sound? Do the mechanical systems and appliances work? Is the yard big enough? Does the floorplan work for your needs? Will your furniture fit in the home? Is there enough storage space? (Bring a tape measure to better answer these questions) Does anything need to be repaired or replaced? Will the seller repair or replace the items? Imagine the house in the weather conditions in your area. Will you be happy with it all year? Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint. Many of your questions should focus on potential problems and maintenance issues. Are there things that will require ongoing maintenance such as paint, the roof, the HVAC system, appliances, carpet, etc.? Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive. If possible, take photographs of different areas of each house such as the outside, major rooms, the yard, and extra features that you like or ones you see as potential problems. Finally, don't hesitate to return for a second look.