What Prospective Homebuyers Need to Consider Before Investing in a Property

Written by Posted On Monday, 06 January 2020 13:48

 Buying a home is one of the most exciting and stressful events in a person’s life simultaneously. The investment in a home is usually the largest that most people make in their lifetime. The home should be viewed as an investment as it usually accounts for a majority of a person’s financial worth. Plenty of factors impact the value of a home currently and well into the future. A buyer that makes a great decision in an up and coming area can reap the financial rewards. Research needs to be done by the buyer as a realtor is going to follow your lead in regards to areas being viewed. The following are aspects of a property that potential homebuyers need to consider when purchasing. 

New Build or Existing House

The choice between an existing home and a new build is quite easy for most buyers. There are just some buyers that do not want to deal with issues that building can come with. Issues like that of utilities running out to a property are a reality for new builds. The advantage of a new build is creating a home you want with all features included. Finding an existing home with every single feature a buyer wants usually comes with an enormous price tag. Problems can be overlooked by inspectors or be hidden in the form of water damage or mold. Faulty repairs can also be an issue if the previous homeowner did a poor/unprofessional job to pass inspection. Negotiation is a huge advantage as a new build will be a fixed price. Negotiation of an existing home is easier especially if an inspector found issues. 

Property Value Trends in the Area 

 

Buying a home in an area where the property values seem to have maxed out can be a risky investment. An area that is trending up with no end in sight are far better investments when it comes time to sell. New shopping plazas or restaurants can have a massive impact on values in an area. Being close to a hub in a city can lead a home to double or even triple in value in a decade. Homebuying websites can allow a buyer to see how the area is trending. A realtor will be able to shed more light on variables impacting home prices. Businesses popping up in an area will increase the demand for homes. A large percentage of homeowners want a short commute to their place of work. 

Access To Public Transportation

 

Cities like that of New York or San Francisco are possible to live in without a car. Spread out areas with limited public transportation like Tampa or Orlando are impossible to live a normal life in without a car. A train station being located around the corner will also mean commerce in the area is going to be booming. The best locations for stores, restaurants, and bars are those with the highest foot traffic. The ability to walk a block or two to a hip area of town can increase quality of life significantly. 

Crime Rates/Poverty Levels 

 

Crime rates and poverty levels are directly linked which can make an area a poor investment for a buyer. People want to live where it is safe especially if they have children in the home. The schools in these areas are often times underfunded due to the lack of tax money coming back into the area. Areas that are in the process of being gentrified due to an influx of cash can be a great opportunity. There are areas in all major cities that used to be considered dangerous that are now a trendy place to live. Purchasing investments properties in these areas can be profitable if rental prices are high but home prices are low. 

City Life Or More Space 

 

A buyer could be looking at homes for sale in north Georgia or the heart of Chicago. Either area will have positive features and negative features. City life can be great but it is not for everyone. People that want to live a more private life moving to the suburbs or a rural area is ideal. A large backyard simply is not possible on a budget in the city but outside of the city, they are very common. Buyers that want or have children will consider their needs when it comes to playing outside. Being able to live in a city gives a child more of an opportunity to learn about real life. Cities are full of different people while a suburb might not be as diverse as the real world. 

Buying a home is going to be a process that you love to hate over the course of time. Finding the perfect home that you see yourself growing into is possible if you do the research!

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