Selecting a New Home: What You Need to Know

In addition to being the largest single investment most adults will make in their lifetime, purchasing a home can be difficult, confusing, frustrating, and complicated – but it doesn’t have to be. Before you select your next home, consider these tips to make the process a little easier. Know Your NumbersrnBefore you begin your search, carefully consider your budget, develop a complete understanding of your resources, and commit to a firm number. A surprising number of home buyers enter the home selection process without a fixed bottom line, an unfortunate situation which almost always ends in disappointment. Being able to firmly communicate your budget to your real estate agent protects you from the frustration of discovering late in the process that a house you admire falls outside of your realistic financing options. Consider the NeighborhoodrnIt’s no secret that location is key when selecting a new home; however, many buyers struggle to effectively evaluate and define their needs. First, identify any “absolute” factors. These could include proximity to your workplace, or location within a desired school zone. Then, narrow your search by identifying all of the services and community features you frequently use. These could include libraries, grocery stores, banks, or access to public parks. Complete a description of your ideal location by listing less tangible factors like neighborhood landscaping. Think about the WorkrnHomes come in all shapes, sizes, and conditions. Before you purchase, give some thought to how much work you are willing to put into a home to bring it up to your standards. Frequently, home buyers who are willing to address problem issues can find themselves with a better deal. If you are unsure about the potential cost of repairs such as patchwork, painting, or replacing outdated carpeting or fixtures, consider having a licenced contractor inspect the property and give you an up-front estimate for the work. Prioritize Your FeaturesrnUnfortunately, it’s rare that a house has everything a buyer is looking for. In order to get the most out of your purchase, it’s often helpful to write out a prioritized list of features which are important to you. Separate the list into two categories, “negotiable” and “non-negotiable.” Add to the non-negotiable category anything without which you would not be willing to consider the house (such as a dishwasher or two-car garage). Into the negotiable category, add any features which you would like to have, in order of preference. If possible, forward this list to your real estate agent before you begin your house hunt.