Preparing to Shop for a Home

Evaluating various neighborhoods and determining how each neighborhood’s houses fit into your budget is an important first step in the homebuying process. In deciding what is most important to you, there are many considerations such as the local economy, recreational activities and parks, school districts, and crime rates.

Some reliable sources of neighborhood information can come from a local library or chamber of commerce. It might also be helpful to speak directly to residents of a particular area to hear their opinions. Driving through the neighborhood in the evening is important to ensure that what you observe during the day remains at night.

Your real estate agent can give you days-on-market (DOM) statistics that will tell you how long an average house in an area sits on the market before being sold. Quick sales are evidence of a neighborhood in high demand, and likely, a favorable place to live. Your real estate agent or an appraiser can provide an analysis of each area’s present and future property values.

What determines a “good neighborhood” depends on an individual’s needs. If you have young children, for instance, you want to purchase a home located near quality schools. If you’re approaching retirement, however, that would not be an issue for you, but you would want to look for amenities such as ocean views and attractive parks in quiet, serene settings.

Once you have established which neighborhood you would like to live in, you are faced with the option of whether to buy a new or used home. Both have advantages and disadvantages, so there is much to think about in making your decision.

New homes afford you the comfort of knowing you are in compliance with current safety and environmental standards. They are also far more energy-efficient than older homes, and therefore less expensive to maintain. New home builders also provide ample phone jacks and electrical outlets for today’s high-tech computer and entertainment equipment.

The downside of new homes is that you often see an impeccably-decorated sample home that has been professionally landscaped and contains every possible upgrade. The actual home that you will buy might not look anything like the sample you fell in love with. Be sure to find out exactly what would be included in your home, and remember that it might be more cost-efficient to purchase a base model home and obtain upgrades from a supplier of your own choosing.

A new home-buyer does not have much room for negotiation; prices are usually set, and developers will more likely throw an upgrade into a deal rather than lower a price. Overall, new homes are typically more expensive than used ones, and they should still be checked out thoroughly by a certified property inspector, as no home is absolutely flawless.

Used homes, which are usually less expensive than new homes, provide the buyer with more bargaining power. Another advantage to buying a used home is the knowledge that it is in a well-established, stable neighborhood. Furthermore, used homes have endured the tests of time and necessary repairs have been made along the way.

There is a certain charm associated with older homes that is not duplicated in new construction. Something to consider, however, is that older homes are less energy-efficient and more expensive to operate, and they might not conform to a family’s need for modern amenities and conveniences such as central air conditioning, multiple bathrooms, ample electrical outlets, etc.

Regardless of whether you choose to buy a new or used home, remember that no matter what, location=value.