These days, when it comes to investing in real estate or becoming a homeowner, finding a house is easy. You can easily contract an agent to help you find one. Or you can go to real estate Multi Listing Services (MLS) listings online like https://www.movoto.com and browse through the available houses. The difficult task is determining if purchasing the home is a worthwhile investment. If you are wondering on what basis you should assess a house, this guide is for you. Here are some key things to evaluate before signing that contract.
Location, location, location
This is the most critical factor to evaluate when it comes to buying a house. A good home in the wrong location could cause trouble when you finally decide to sell. This is besides the fact that a lousy location makes difficult living conditions. If you are a young family with kids, you need a neighborhood that has kids too. Meanwhile, if you are a retiree, you need a quieter area. How are the neighbors? Do they hold loud parties or have annoying dogs that bark throughout the night? Are there unsavory characters hanging around?
How is the infrastructural development in the area? How are the roads? Are there sufficient social amenities? How close are you to the schools, hospitals, and shopping areas? Are there any noises you can’t tolerate, such as the sound of planes departing and landing in property near an airport? How close are you from chemical emitting industries? All these are important as they will affect your life’s quality when you live there and the value of your home when you finally sell.
The age of the home
Whether you are buying a new home or an older home, they have advantages and disadvantages. Some older homes were meticulously constructed, lay on larger lots, and have more established neighborhoods. Some new homes used eco-friendly materials in their construction and have more modern amenities. The choice is ultimately yours.
The size and state of the house
It would help if you didn’t only consider your immediate needs when deciding the house’s size. Unless you plan to move when things change. A family without kids, for example, should consider the fact that they may need more space once the kids come along. This means that a two or three-bedroom house will serve them for longer than a one-bedroom house
Next, do you want a well-maintained home or a fixer-upper? Hire a house inspector to inspect the house. They will look at some of the most critical aspects of the house such as the roof, floors, walls, electrical and plumbing systems, foundation, and the (HVAC) Heating, Ventilation, and Cooling system. You may also ask the seller for an inspection certificate if they have one. Also, check the state of the appliances and for bugs and pests.
All about the money
Buying a house is an expensive process. The price listed on the house isn’t going to be your only cost. There are realtor and solicitor fees, taxes, closing fees, and other charges like repair costs. If you are buying the house on cash, factor in the charges mentioned above when determining how much money you will need. If you are purchasing the home on a mortgage (or doing a mortgage refi if you can get a good rate), consult with your bank and find out how much down payment you will need to pay besides the other charges.
Evaluate your job security. If you take the home on a mortgage, you will be required to pay the bank regularly. Of course, you are in no control of whether you will lose your job, but some have a higher sense of security than others. There is nothing as unfortunate as purchasing a home then losing your job soon after. The process of bank repossession is not only painful and embarrassing but also bad for your wallet. Ask yourself if renting may be a better option.
Extra features you want
Besides the state and size of the house, does it meet your other requirements? Is it a single-level house when you wanted a multilevel one? Does it have the yard you desire for your kids or the dog? Does it have a deck? Does it have sufficient bedrooms and bathrooms? Does it have the garage or the natural lighting? Whatever your wish list has, does your home have these features? Determine what features you are not ready to compromise on and pick a home that meets those needs.
Before you give away all that money to the buyer, make sure you are getting value for your money. Unlike shares that you can sell on a whim when you feel you made the wrong choice or their value is going down, a house is much harder to liquidate. Do your due diligence before signing that contract.