5 Tips Most First-Time Homebuyers Don’t Consider

Purchasing your first home is both an exciting right of passage and a nerve-wracking endeavor. Being that it is a serious commitment and a huge financial investment, it’s important for people to be fully aware of the situation they are getting themselves—and their money—into. Because this step can be extremely exciting, it is incredibly easy for prospective homebuyers to make a few oversights that could become an issue down the road.

Here are five home buying tips many people forget to consider:

1. All Expenses

When budgeting for a home, think about all the expenses, including principal mortgage, interest, taxes, insurance, utilities, commute cost, upgrades, moving expenses, HOA, etc.

Do your due diligence so that you’re prepared financially for your home purchase. For example, if you live in an area where you can choose your electric company, such as ChooseTexasElectricity.org, be sure you research which company offers the best deal. Even seemingly small home expenses can add up, and it’s important to be prepared.

2. Long-term or Short-term

What type of home is this? Is this a starter home, a home you plan to have children in, or a home you are planning to stay in indefinitely? Whatever the case may be, make sure you have covered all of your bases before making an offer on the home.

For instance, even if you only plan on staying in the home for a couple of years, make sure to check out the city’s past housing market. Does the market seem to be declining or inclining? If the market is inclining in the area, or has been steady, there is a good chance you will be able to sell your home and make a profit. If the area is declining, you might lose money on your home, and selling could be difficult. Although plans change, know what your plan is before purchasing a home.

3. Check-List

Before looking at potential homes, make a checklist of what you need in a house. Break the list into different categories depending upon what features you can and can’t live without. When looking at potential homes, bring a checklist with you that list home essentials and home have-nots. The list will help you to think more objectively.

4. Neighborhood Demographics

Are the homes in your prospective neighborhood owned or rented? If investors who are renting out the properties mostly own the neighborhood, it only takes a couple of bad renters to drive the neighborhood down.

5. Look Beyond Staging

Staging can truly transform the look of a house, which can be appealing to buyers. However, staging can be misleading, thus be sure to look at the bones of the house as well. For example, a living room can be staged with an inviting setup that includes a television, but the room might not even have cable hookups or an electrical outlet anywhere near the staged television, which means, if you want to replicate that exact setup, you will have to do some serious remodeling.

Do not be fooled by a nice package; be certain the home has bones you love too.