Are You Ready to Buy a Home? The Non-Financial Checklist
If you passed our homebuying readiness checklist, it’s now time to think about your wishlist. Here are some important questions to consider to help lead you to home, sweet home.
When we started looking for a home, we didn’t know exactly where we wanted to live or what we wanted in a home. We saw fixer-uppers, turnkey homes, old homes, new homes, big homes, small homes…probably 100 homes before we finally settled on one three years later.
Our poor realtor.
She isn’t a realtor anymore. She claims that isn’t related to us.
More important than sparing your realtor’s time is protecting your own time and money. Here are some important questions to consider in your home purchase, beyond what you can afford.
Where do you want to live?
There are so many possible good reasons for choosing a location, but if you don’t prioritize you may have a hard time honing in on a search range. Do you want to live in the suburbs, the city, or a rural area? Will you base your choice based on proximity to your job, family, friends, quality of schools, how hot the real estate market is, home prices, proximity to shopping, walkability, or neighborhood type?
These are just a few of the many factors you may consider. It’s possible to satisfy more than one, but you may not hit all in one property. Prioritize to narrow your search and save yourself time. Or if you’re flexible on all of these you may be able to prioritize price over other factors.
How long do you want to live there?
What first-time homebuyers don’t see is how much it costs to sell a home. Realtor fees cost 6-7% of the home’s value. So for a $150,000 home you’re looking at $10,500. This is in addition to extra repairs and upgrades you’ll make to help it sell. The point: it pays to stay in your home for long enough to gain equity to compensate for the cost of selling.
Buy with a view to sell. We’ve talked about the fallacy of depending on your residence as an investment, but do keep future marketability in mind. Chances are you will not live there forever. Properties in obviously bad neighborhoods, with very strange floor plans, or with major foundation or structural problems are not just drawbacks for your time there. They’ll also deter future sellers.
What type of home do you want?
Are you looking for something move-in ready, or are you willing to build sweat equity on a lower-price property? It’s so important to know thyself here. Don’t buy a fixer-upper if you don’t like to fix things. Don’t count on sweat equity if you don’t like to sweat. Unless, of course, you’re happy to pay someone else and have the savings to do so.
Maybe you’re very handy but are short on time. Again, be cautious about getting in over your head. And just because a home price is low doesn’t mean it’s affordable. For example, if the property needs to be gutted, make sure you have the cash on hand or can responsibly finance the project.
Do you want a starter home or somewhere you could stay indefinitely? Keep in mind how long you want to stay and whether the home could accommodate children, a home office, or anything else you might have in mind for the future.
Do you want an older home with more character, or a modern home that may be more “cookie-cutter”? Older homes may be an affordable way to score beautiful features, but they can come with a lot of maintenance requirements as well. If you’re not interested in taking care of an older home, don’t buy one!
We also discovered that the newest homes we looked at (1980s) were also the most run-down. In our price range, these newer homes were just old enough that nothing had ever been replaced. That meant we were looking at 30-year old furnaces, hot water tanks, and roofs. (Not to mention lots of outdated wallpaper and fixtures.) Read: lots of expenses on the horizon. We opted for a late 70s home that had updated these major items within the past 5-10 years.
What features do you want in a home?
When we started house-hunting, we were interested in having a large room that could hold up to 30 people for church meetings. As time wore on we realized this would be hard to find in our location and price range. We didn’t want to get into a situation that required major remodeling right away. Eventually we dropped this from our list. Thankfully we’ve still been able to host lots of other types of events.
Some people really want a master bath, a two-car garage, a dishwasher (or room for one), or a formal dining room. We knew we wanted a yard—it didn’t have to be big, but we saw many homes with postage-stamp size yards, some of which were completely paved. We knew we need a little grassy space to garden. Thank goodness we realized this. Now our .3 acre plot is a burbstead where we raise chickens, garden, and tap our maple trees.
There’s no right or wrong to your home-buying wish list, but you may have to hone your non-negotiables. And those may change over time as you see what’s available. Update your priorities as they change and communicate this with your realtor.
And hopefully she won’t quit.
Homebuyers, what’s on your wishlist? Homeowners, what else should prospective homebuyers think about? What do you wish you would’ve considered while house hunting?