05.03.10, 11:46 AM EST
Buying a home is one of the most exciting, joyous and momentous events in a person's life. Beyond being on a roller coaster of emotions, there are also a lot of decisions that need to be considered before embarking on the journey into your first home. This is the real world guide to purchasing property, the common sense manual that can sometimes be left out on the quest for a new home. Due to the current economic recession and the rapid increase in foreclosures, there are a few things previous buyers have learned that could be beneficial to new home buyers. Hopefully, this list will help first time buyers navigate successfully through the labyrinth of home ownership, both wiser and better equipped to make the right decisions.
Location, Location, Location
This is a fundamental part of real estate and is therefore the first on the top 5 things to do. Visit your potential home and neighborhood at different times of day (early morning, late evening and mid afternoon) so you can determine if there is anything you did not notice on your first visit. Go beyond your neighborhood and explore the surrounding area, determine the closest grocery store, hospital, dry cleaner, parks, etc. These are all the places you will want to know more about once you have settled into your new home. Visiting your potential neighborhood at different times of day could reveal things you may not have known about your community, both good and bad. In addition, check the traffic patterns to and from your home, varying times throughout the day. The most gorgeous of homes may not be worth a 2.5 hour commute, or if it is, at least you understand and accept that before purchasing your new home. You do not want to discover this information AFTER the docs are signed. According to NAR's 2008 data, when considering purchasing a home commuting costs were considered "very or somewhat important" by 80% of buyers.
Budget
Be realistic about your own spending habits. Almost everyone would love to have the lavish mansion on the hill, the new luxury sports car, exotic vacations and a fabulous wardrobe. However, the most important person to be honest with - is you. If you enjoy vacationing several times a year, is buying a larger and more expensive house practical when you are the only occupant? If you enjoy buying a new pair of shoes more than paying the landscaper, is an acre of yard where you want to put your money? If you enjoy city life and urban entertainment, is it the best idea to move 30 miles from the closest metropolitan area in order to afford your first home? You will need to determine what you are willing and able to spend and if home ownership is worth the potential sacrifices. Nearly half of all buyers (46% according to NAR) reported they have made sacrifices, such as reduced spending on luxury items, entertainment or clothing in order to qualify for a mortgage. Homes in whatever size and style come with upkeep and ongoing costs and despite industry averages nothing can determine how much it will "truly" cost. Being realistic about your budget and your spending habits will help you have a firm grasp on the joys and the burdens of home ownership.
Time
Give yourself time. High pressure situations are NEVER the way to enter into homeownership, or any major life decision. The 2008 NAR buyers profile showed that the typical buyer searched for 10 weeks and viewed 10 homes on average. Purchasing a house, "because your roommates are moving out" or "because everyone says there are great deals right now," does not justify rushing into a commitment as large as purchasing your first home. The decision needs to come from planning and a true understanding of the journey you are undertaking. One that, contrary to what some people think, truly begins once you close on the house.
Use Caution
Buy your home for the "right" reasons. The reasons can vary from person to person, but primarily this has been included on the list because buyers have emotionalized the concept of buying a home and therefore forget what the "right" reasons are for them. The right reasons are not, "because the model home was decorated lovely" or "because all of my friends live close by". Before purchasing a home you should take into consideration many things, including but not limited to, your economic, social and lifestyle choices. The flip side of this is to not disregard a house based on the "wrong" reasons, such as paint color, available appliances or minor cosmetic damage. Most items can be replaced or repaired, sometimes at seller's expense, and are subject to your own touch once you purchase the home.
Inspections
Of course you should be excited about purchasing your first home, but do not forget to be practical as well. The old adage that "love is blind" holds true for many first time buyers. They fall in love with a house and do not see the need for an inspection. This can spell trouble in a variety of ways. Even though the sellers seem like decent people, there may be something they are not telling you about your "dream" home, and it only helps you to find out sooner rather than later. Most items are not deal breakers but finding out early can save you time, money and stress.
There are many things to consider when purchasing your first home but taking the time to gather information, review your budget and order inspections are great first steps. The search for the right home can be fun and exciting but should not be started without serious planning and consideration. Finding the perfect home for you can sometimes be a time consuming experience, but ultimately it is time well spent when you discover the house that fits all your needs.
