Buying your first home is an exciting time in anyone’s life. However, it is important to go into the process with your eyes wide open so that you make the best choice for your home investment dollars. Before you sign on the dotted line, be sure to consider these three things for your starter home.
Per definition, a starter home is not intended to be your forever home. This means that you will eventually sell the home and move on to something else. Because of this, you want to take the future value of the home into serious consideration. Be sure that you select a home that is located in an area that is expected to rise in value. Choosing a neighborhood with good schools is an ideal way to attract future buyers. It is also a good idea to buy a home that can be easily upgraded to add more value. When you remodel your home, any upgrades you make will add to your home value—especially if you keep remodeling costs low.
Type of Home
Before you begin the home search process, be sure to consider what type of home you are targeting. Having a five- and ten-year plan will serve as a guide as to what home style will best fit your needs. As a starter, ranch homes are fairly popular for new families. Be careful of fixer uppers and foreclosures. While they can be a great bargain, they also can come with many pitfalls that may turn them into money pits. You need to be cautious that you do not let a discounted price lure you into something that ends up costing you more money in the long run.
Because this is the first home you have ever owned, you want to take care to make sure that you do not bite off more than you can chew. For your first home, it is important to choose a home with few maintenance requirements. For example, a home with an expansive yard and gardens may be overwhelming if this is the first time you have been in charge of a home’s maintenance. You also want to ensure that you have enough free time to actually enjoy your first home.
Having a list of qualities that you want in your first home will help to guide your search process. In the end, you want to make sure that your first home fits your needs at the time while also delivering a solid investment of your real estate dollar in the future.