It is the dream of any working person to own a house, acquiring footing of financial stability. No matter how impossible it may seem, there are many paths that can take you there.
However, when you get so focused on making that happen in your life, it is easy to lose peripheral awareness and miss important considerations. We get so entranced on successfully making a purchase of a home that we forget to calculate important things we should be prepared for.
There is an endless list of things you need to be aware of in the purchase of a home, and unfortunately, it is better learned by experience. There are some things you can know of before you buy, however, and there are things to consider before you end up with a burden you can’t or don’t want to handle.
1. Be Wary Of The Cheaper Buy
Arguably one of the easiest ways to get yourself into a home is to look for something outdated, cheaper, and in need of a little love. The issue that they don’t show you on reality tv shows is that a “little love” can turn into a more expensive situation.
The first thing that is unequivocally the most important step to take with an older home is a thorough inspection. Anything they might see as a concern you’ll want to look into for a plethora of reasons. Hidden costs like asbestos mitigation, foundation issues, water quality, lead pipes, leaking roof, electrical; the list can be endless, expensive to fix, and very time-consuming. Having as much knowledge as possible about the house you’re looking at before you buy can prevent a lot of headaches, and give you more leverage as the buyer.
2. Understand The Hidden Issues
When someone is selling a home, depending on the state you are in, they are not legally obliged to tell you known issues with the house. Having a good realtor on your side will help with this, but the inevitable is you will find some of those hidden things. This is the nature of buying a house, and it is important to take on each issue one at a time.
Some of these problems may be a pain, and some of them may present opportunities like “new homeowner credits” and a public list of failed inspections. Taking the purchase of a home one day at a time, and not letting yourself get overwhelmed or distracted can help uncover something that was missed and save you time and money.
A good reminder is to go in with an attitude of what is fair to both you and the seller. It is easy to get caught up in wanting what’s best for yourself which can lead to taking advantage of others, however, you are looking for fairness in this transaction. If the house in question needs a new roof and has asbestos in the basement it may be wise to move onto another home instead of trying to get everything you can out of that seller.
Even if homes are in short supply there is always an opportunity if you are looking for it.
3. What Could Affect The Housing Market
When a person or family decides to purchase a home, it’s usually because they want to be permanent residents of the area. Once you’ve finally found that perfect property there is much more to consider past the initial home and remodeling costs.
From what school district you will be in, to the potential development in your area, there are many things to consider. Looking into property taxes and being aware of local gentrification is one of the easiest things to miss.
You can put 600k into a new home, only to have a sub-development go in across the street that will raise your property taxes. Living in a popular area can be a great opportunity for equity growth, but it also makes the market hard to compete with. That added migration of too many people can start to destabilize a community bringing crime, or higher levels of poverty. These subjects, although never easy to address, will have an impact on the value of your property.
Being aware of all the plausible situations when purchasing a home is nearly impossible, even for the seasoned real estate agent. There are many unforeseen circumstances and miscommunications along the road, but the destination can sometimes be worth the battle. When you get past all the headaches, inspections, remodels, and random fee’s you will find yourself with something you can be proud of.
A home in your name can bring stability to your family, both in a safe haven to sleep and generational wealth. There is a reason why the housing market is one of the most remarkable and reliable industries. You just have to be willing to step into it and see what you find.