Choosing A Starter Home

Buying your first home is an exciting and nerve-wracking experience! Whether it becomes an event to remember or one that you would rather forget depends mostly on how you plan your purchase.

First of all, get recommendations to find the very best realtor. Be sure to choose one that focuses on helping new home buyers learn the ropes – there is a lot of paperwork to be done and a great deal of research to be performed. When it is your very first time, these things can be daunting. Your realtor will usually have a good relationship with a bank or mortgage broker. Meet with a financial person, and get a letter of pre-qualification before starting your search. This will tell you what your price range is, and will also help you act quickly if you find your dream home.

Secondly, carefully choose the neighborhoods you want to live in. Since your goal is resale value, it is very important to choose a neighborhood that will appreciate rather than depreciate. Signs of improvement or decline are often apparent when you drive through. Do you see homes left in disrepair? Or do you see homes being renovated? Are the area businesses tidy and well-kept? What are the local school systems’ test scores and reviews? Remember, it is better to choose a smaller home in a great area than to choose a larger home in an area in decline.

Since this is not the home you will retire in, you probably will not have all the amenities that you want at this point. Sit down with your spouse or significant other and make a list of all the features you desire in your new home. Do you want a large kitchen? A pantry? List it all out first in a brainstorming session. Be sure to ask your realtor which features drive resale value the most. Right now, stylish, large kitchens command a strong premium. After you have your full list, then prioritize it.

Next, review all available homes in your price range against this list. Choose the home that fits your list best, and start the offer process!