For any young couple, deciding that home buying is the next step can be a bit intimidating. Home buying represents the largest purchase most people will ever make, and there are so many factors that go into being home buyers. Before anyone begins the search into homes for sale, they should have some basic knowledge about the housing market and process. To learn the five most key lessons for all new home buyers, keep reading.
1) Financing Basics First, it’s important that all people who are looking to purchase a house, whether they are focused on homes in foreclosure or new homes for sale, understand the financing options that are available to them. About 38% of home buyers in 2014 were new homeowners, and often, this qualifies people for special financing options. Understanding financing is so important because for people who needed a loan in order to purchase their home, they often financed 90% of its value. That is a huge investment for most families and can’t be taken lightly.
2) Keep Your Future in Mind Although it may seem odd, when you are shopping for a home, you should also be thinking about what it would be like to one day sell your home. If you find a house that you think is perfect for you right now, but you’ll likely move within a few years, you want to make sure that when that time comes, selling your home won’t be a problem. Look for a home that has good resale value and avoid trendy neighborhoods or building styles that likely won’t withstand the test of time.
3) Good Bones Make Good Homes One of the hardest things for new home buyers to understand is that they can’t be distracted by paint colors or finishing elements when looking at a home. All of those cosmetic issues are relatively cheap and easy fixes. What matters much more is that a house has “good bones.” This means that all of the hidden (and often expensive) elements of the home are solid, such as the foundation, insulation, wiring, and plumbing. These hidden elements can turn into huge financial burdens, so don’t let yourself get distracted by decorations and ignore what really matters.
4) Shop Online One of the biggest things that has changed in the last decade about real estate is the role of online shopping. Today, more than 90% of home buyers start looking for houses online, often before they even contact a bank to learn about financing or a real estate agent to begin the purchasing process. This has changed the game of home buying, and means that now you must think about the important online element of each home sale.
5) Think Local It’s best to stay local with a lot of things, and your real estate agent is definitely one of them. If you know exactly what neighborhood you want to move into, hook up with an agent that specializes in that part of town. They will often have insights you couldn’t gain from an outsider and will know exactly what a house is really worth.