What To Look For When Buying A Home To Build Equity

Buying a home will be the biggest purchase of your entire life. It’s not a decision that anyone should or will take lightly. You want to buy a house that you can live in. Sometimes, it’s even best to think of your home purchase from the perspective of others. Ask yourself, “Would other people want to live here?”

When it comes to your home, the financial buzzword is “equity.” As the buyer, you want to be able to build some equity into your home so that if you should choose to sell it, you’ll make a profit.

Whether your home is only meant to live in for a few years until your family outgrows it, or you think it’s going to be a forever home, life happens and you don’t want to be stuck with a home that you must take a loss on. Keep these aspects of the home in mind when you are ready to buy:

Size

Most people search for 3 to 4 bedroom homes. Whether they are married and want to have children or just need extra space for another baby that is on the way, families typically look for places where they have room to grow. The number of bathrooms in a home is also key. Families don’t want to share one bathroom among 4-5 people. These factors are even more important than the actual space available in the home by square footage.

On the flip side, you don’t want your home to be too big either. Larger homes aren’t as energy efficient and can cost more to maintain. Know that there is a “sweet spot” for your square footage. Usually this is somewhere between 1,000 and 2,000 square feet of living space.

Room To Expand

Look at the home to see if there is room to expand. Perhaps you need another bathroom, but there’s some space to construct an additional half bath. This factor of expansion is key when it comes to a home or property.

Look Past The Appearance

Things like paint colors, floors, carpets and other aesthetics aren’t as important as the big things when it comes to buying a home. You can easily change these without much cost or effort on your part. While everyone loves a move-in-ready home, don’t let a little paint separate you from a home that you love!

Curb Appeal Helps

While it’s easy to fix some things like the color of a home or the shrubs, find your vision to give the home you’re about to purchase some curb appeal. If you can see past the imperfections and make your home your own from the outside in, your home will be attractive. There’s plenty of things you can add and fix from doors to landscaping to paint to a new mailbox. All of these can give your home some serious curb appeal.

Sound Structure

If the structure of the home is not in good condition, you’ll face many problems down the road. You want to avoid costly repairs by ensuring that you buy a home without serious structural damage or wear. The most important part of a home’s structure is that of the foundation. If a home has a cracked foundation, it’s going to cause some problems. Be sure that you hire a reputable inspector and attend the inspection so you know exactly what’s going on with the home you are about to purchase. You can prepare yourself for any problems or issues this way, and make a decision from there. A home that has a good structure to start will undoubtedly continue to help you build equity in your purchase.

How Much is My Home Worth?

It is common question that real estate professional get; what is my home worth? Unfortunately, it is a question that does not have an exact answer. There are ways to determine about what your home is worth. You may find online estimates that say one thing but is that a true test of what the market will bear? So, how can you really determine what your property is worth?

1. Consider Solds-Look at other comparable homes in your area that have recently sold. This will give you a good idea what buyers are willing to pay.

2. Consider Under Agreements/Pendings-Although it is difficult to tell what a home has sold for before it closes you may be able to tell the demand in a price range. Look at the asking price of the home and how long it was on the market. If you see a trend of homes going under agreement quickly you may assume they are going closer to the asking price.

3. Consider Active Listings-Real estate is about competition just like any other commodity. It is important that your home be competitively positioned against other comparable listings. The asking price is a part of the marketing plan of the home.

4. Online Values-Be wary of online estimates. The very definition “online” takes the human factor out of determining the value.  A computer program cannot take into account the nuances of location, home style and home condition.

5. Sell It-The only way to know a home’s true market value is to sell it. At the end of the day a home is only worth what a buyer is willing to pay.

 

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Stunning 4 level Townhouse completely renovated with all high end finishes in 2011.Open layout with a chef’s kitchen including an island and separate dining area – glass front cabinets/ granite and ss appliances. The living room has a gas fireplace and there are french doors to a private rear patio. Two 2nd floor bedrooms with a tile bathroom and laundry. The third floor has a master suite with 3 skylights, vaulted ceiling, private 15×5 deck and gorgeous master bath. The lower level room has full size windows and another full bath, Four zone hi efficient gas heating and central air. Steps to Harvard Sq and Porter Sq along with shops and many restaurants. Easy on street permit parking.

This property features 7 total rooms, 3 full baths, 1 half bath, 3 bedrooms, and is currently available for $6,500.

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