Buying a new home can be a big, exciting-but-scary decision!
t’s usually a long-term commitment to not only the home, but the neighborhood, school system and your commute. While you may love the curb appeal and the size of that kitchen, there are a few things that you need to really consider before you sign on the dotted lines. Here are a few things to consider.
1. Space. Too much? Too little? Buyers often realize too late that their home is too small for their needs, especially when life changes in significant ways, like having kids. On the flip side, some people regret buying a house that’s bigger than they need, with higher maintenance, utility costs, cleaning responsibilities and yard care.
2. Maintenance. It’s fairly common these days to skip a formal inspection of a home before buying it, particularly if there’s competition for that home. But that can get you into trouble down the line, particularly if the previous owners did unpermitted renovations or shoddy improvements. That home inspection is, more often than not, worthwhile. If you choose to skip it, you should consider getting an extended home warranty at the very least.
3. Neighborhood and commute. Often, Realtors will recommend that you drive through your neighborhood several times, at different times of day. Is it pretty quiet on a Saturday night, or are there raging parties down the block? Is parking difficult in the evenings and on weekends? Test your commute from your new location a few times (both to and from), too. Look up the ratings of the local schools, and look at local crime data from your police department. All of these things will affect both your day-to-day life in your new home and your home’s resale value later on.
4. Under-Budgeting. You may be able to afford your mortgage no problem, but you need to look at the total costs of your new property. Is there a home owners’ association (HOA) or condo fees due monthly, quarterly or annually? How much are property taxes, and how much will your homeowner’s insurance cost? What about maintenance, both ongoing (like the yard) and long-term like the roof, windows and HVAC system? In addition, you need to budget in the cost of physically moving all of your stuff to a new location and outfitting your new pad, whether you’re hiring movers or renting a truck and buying your friends pizza.
You should be able to afford your mortgage plus all of those things so you aren’t feeling stretched too thin at the end of every month. Even if your mortgage company says you can buy an expensive house, you may want to scale back a little bit. Also consider expenses that you’re expecting to come up in the next few years, like whether you’ll need a new car or have a child heading to college.
5. Flying solo. It’s tempting to avoid using a real estate agent — and the costs associated with using them. You see For Sale Buy Owner signs around, why can’t you also buy a home without a Realtor? Well, it’s not so simple. Buying a home is a big financial and legal transaction, and you’ll want access to all the good advice and expertise you can get. Usually, you’ll find that a Realtor pays for themselves in the value they bring to the table, including knowledge, connections, lessons learned and useful advice.
Want to avoid buyer’s remorse? We'd like to remind you that CommonWealth One has a great HomeAdvantage® Program (including recommendations for well-qualified, local Realtors and a rebate at closing)1, our Member Advantage Mortgage Loan program2 and more.
We're here for you, for life, and for all your housing needs! We hope to see you soon! Best wishes for a successful, stress-free search for your new home!
