Obviously people give serious thought to the budget and some basic amenities of a home before they started searching for a house to buy. However, we often don't truly see the whole picture when purchasing a home and, consequently make some costly mistakes. Because this is such an important purchase, take a look at the following tips to help you avoid buying a home that doesn't really complement your needs.
You already probably know how much of a mortgage payment you can afford, and you probably also have accounted for the costs of a down payment and closing escrow. However, there are more expenses to consider and these can really add up. For instance, you definitely need to think about the property tax rates in your new neighborhood. In some states, you might only pay about half a percent of the purchase price for this tax, but in California, you will pay 1% of the price you paid for the house. California has a median home value of about $400,000 and this means you probably will pay more than $4,000 each year in property tax. Add to that your monthly homeowner association dues and insurance costs, and this can be a lot of money each month.
Many people find a home that they really, really love but become completely blind to its faults. This is a huge mistake. Never love a home so much that you overlook problems that cannot be fixed. For example, you will never be able to change the location of your home. If it's a bad location or if the neighbors are horrible, you cannot ever fix that. Busy, noisy streets will always be that way. A school or church across the street will never go away. Get to know the neighbors and neighborhood by taking a walk in the area. Listen for constantly barking dogs or other irritants and talk to the neighbors and check out their impressions of the neighborhood in general. Drive by at different times, day and at night, to get a better idea of how the neighborhood functions.
Don't set your sights on the wrong amenities. Maybe you want a completely updated kitchen with stainless steel appliances and granite countertops. What you really need to be looking at is the size and storage in the kitchen. Always look at the bones and layout of home and assess the home based on non-cosmetic issues. The decor might not suit you, but that can be changed easily. You cannot easily change the size and shape of the rooms. Big closets, adequate storage, a good laundry room and plenty of natural light are all great features.
While you might hope to make this move your last one, you still might have to sell it at some point. You need to look at the home's resale potential. For example, if it is close to great schools and on a quiet, picturesque street, this will appeal to many buyers. An open floor plan and plenty of natural light also appeals to buyers. Strange home layouts are hard to fix, as well, and as stated before, people rarely want to live on a noisy or busy street. Resale might not be at the top of your concerns list, but it should be something you at least consider briefly before purchasing a home.
The search for an ideal home begins by contacting a real estate expert, such as the agents at 1st InSite. No matter what city you like or budget you have, they can help you find a fantastic home. They are highly knowledgeable about the real estate market in the East Bay and can find Alamo real estate, Danville real estate, Moraga real estate, Walnut Creek real estate or any other East Bay town or city.
You already probably know how much of a mortgage payment you can afford, and you probably also have accounted for the costs of a down payment and closing escrow. However, there are more expenses to consider and these can really add up. For instance, you definitely need to think about the property tax rates in your new neighborhood. In some states, you might only pay about half a percent of the purchase price for this tax, but in California, you will pay 1% of the price you paid for the house. California has a median home value of about $400,000 and this means you probably will pay more than $4,000 each year in property tax. Add to that your monthly homeowner association dues and insurance costs, and this can be a lot of money each month.
Many people find a home that they really, really love but become completely blind to its faults. This is a huge mistake. Never love a home so much that you overlook problems that cannot be fixed. For example, you will never be able to change the location of your home. If it's a bad location or if the neighbors are horrible, you cannot ever fix that. Busy, noisy streets will always be that way. A school or church across the street will never go away. Get to know the neighbors and neighborhood by taking a walk in the area. Listen for constantly barking dogs or other irritants and talk to the neighbors and check out their impressions of the neighborhood in general. Drive by at different times, day and at night, to get a better idea of how the neighborhood functions.
Don't set your sights on the wrong amenities. Maybe you want a completely updated kitchen with stainless steel appliances and granite countertops. What you really need to be looking at is the size and storage in the kitchen. Always look at the bones and layout of home and assess the home based on non-cosmetic issues. The decor might not suit you, but that can be changed easily. You cannot easily change the size and shape of the rooms. Big closets, adequate storage, a good laundry room and plenty of natural light are all great features.
While you might hope to make this move your last one, you still might have to sell it at some point. You need to look at the home's resale potential. For example, if it is close to great schools and on a quiet, picturesque street, this will appeal to many buyers. An open floor plan and plenty of natural light also appeals to buyers. Strange home layouts are hard to fix, as well, and as stated before, people rarely want to live on a noisy or busy street. Resale might not be at the top of your concerns list, but it should be something you at least consider briefly before purchasing a home.
The search for an ideal home begins by contacting a real estate expert, such as the agents at 1st InSite. No matter what city you like or budget you have, they can help you find a fantastic home. They are highly knowledgeable about the real estate market in the East Bay and can find Alamo real estate, Danville real estate, Moraga real estate, Walnut Creek real estate or any other East Bay town or city.
About the Author:
Madeleine Glazier enjoys blogging about the real estate industry. If you are searching for Danville real estate agents, or to find Danville homes for sale, please check out the 1stInsite site now.
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