New homeowners face a steep battle to homeownership. A new homeowner will have to build up a large amount of money for a down payment and to cover all of the closing costs, taxes, and real estate fees on the purchase. Then there are the home renovations and new furniture purchases that are part of the deal. Buying a home is challenging for a new homeowner but made easier when you take certain steps to put yourself in a better position to buy and sustain your home.
New, Used, or Other – What type of home to buy?
The first step to take is to understand what type of home to buy. Each option has its own advantages and there is no one fits all solution. You will need to assess the situation and determine which option is best for your needs. New homes tend to be more expensive to buy or construct but can be customized for your needs and require less maintenance and repairs. Used homes are more affordable but sometimes require major repairs and have potential lingering problems that you will unravel as you live in the home. Then there are a wide range of unique homes like coops, condos, house boats, and trailer homes; all of which have their benefits and disadvantages associated with them.
Spend the time to understand what you are looking for in a home and which benefits are most significant to you. If you are looking for a starter home than long term considerations may not be important and you can look for a smaller home that fits your needs now. If you can do renovations yourself you may be Able to convert the starter home into a profitable turnaround story that can finance your next home upgrade.
Preparing for the First Home Purchase
It is important to put aside enough money for your first home purchase. Try to set aside twenty percent of the home price for a down payment so you can avoid prime home insurance which places a financial burden on you without adding equity to your homes value. In addition, set aside about five percent of the purchase price for real estate taxes, moving fees, homeowners insurance, and other ancillary costs you will incur with your new home. After this, have a budget for furniture and needed repairs on the home which will be less with a new home and more with a used home purchase.
What do You consider with a home purchase
When buying a home it is a good idea to keep an eye on the value of the home that you are buying, as you may need to resell it some day in the future. Homes that are in good quality school districts tend to return the greatest amount to homeowners, and often require significant amounts of property taxes to support. You are often better off buying the worst house in the best neighborhood than the best home in the worst neighborhood, and this starts with school districts.
In addition, pay attention to the public transportation in the area you are buying as easy access to the city via public transportation provides conveniences that help to maintain and improve on overall home value. Finally, newly renovated kitchens and bathrooms provide the most significant enticement for a homeowner as they are the most troublesome jobs to have done in a home.
Buying a home can be a challenging affair for a new home buyer including finding a home, financing it, and maintaining it. Carolina One Real Estate has a clear plan, will advise you on the finances, and put the effort into searching for the right home for the greatest return on your purchase.