Throughout the search for a home, you must remain focused on what you want (and don’t want). If a particular aspect of the house is important to you, do not take anyone’s word for it. Investigate for yourself.
You may want to keep a list of items that are important to you, such as the location of the neighborhood, the type of materials used in building the home and the schools.
Visit schools, walk around the neighborhood, look under carpets to see what the floors are made of, stay in the basement for awhile to see how damp it is. You may also want to drive through the neighborhood after dark to see if it is a safe place to live.
In order to have a benchmark for comparing home prices, find out what the price per square foot is for homes you are looking at. To find the price per square foot, divide the asking price by its square footage. Sources of a home’s square footage include the local tax assessment agency, the real estate agent, and the home builder. You should verify any statement that might be self-serving.1
Here are some tips to help determine which house is best for you.
Once you've settled on a couple of neighborhoods for your search, it's time to pick out a few homes to view. Your wish list can remind you which features are absolute requirements and which amenities you'd like to have if possible. When narrowing down your home search, consider:
- Types of homes
- Home purchase considerations
- Home comparison chart
What to do when you’ve found the right home for you
Types of homes
In addition to single-family homes (one home per lot), there are other forms of home ownership:
Multifamily homes: Some buyers, particularly first-timers, start with multiple family dwellings, so they'll have rental income to help with their costs. Many mortgage plans, including VA and FHA loans, can be used for buildings with up to four units, if the buyer intends to occupy one of them.
Condominiums: With a condo, you own "from the plaster in" just as you would a single house. You also own a certain percentage of the "common elements" -- staircases, sidewalks, roofs and the like. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowners association administers the development.
Co-ops: In a few cities, cooperative apartments are common. With those, you purchase shares in a corporation that owns the whole building, and you receive a lease to your own apartment. A board of directors supervises management. Monthly charges include your share of an overall mortgage on the building.
Home purchase considerations
Most buyers' first consideration, after neighborhoods are chosen, is the number of bedrooms. As you begin to view homes, keep the following purchase and resale considerations in mind:
- Weigh your needs, budget and personal tastes in deciding whether you want a home that’s a newly constructed home, an older home or a home that requires some work -- a "fixer-upper."
- One-bedroom condos are more difficult to resell than two-bedroom ones.
- Two-bedroom/one-bath single houses generally have less appeal than houses with three or more bedrooms, and therefore less appreciation potential.
- Homes with "curb appeal" (a well-maintained, attractive, and charming view-from-the-street appearance) are the easiest to resell.
- When resale is a possibility, don't buy the most expensive house on the street, or anything that is unusual or unique. The best investment potential is traditionally found in a less expensive, more moderately sized home on the street.
Home comparison chart
While house-hunting, it's a good idea to make notes about what you see because viewing several houses at a time can be confusing. Use our home comparison chart to help you keep track of your search, organize your thoughts and record your impressions.2
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2© 1995-2007 NATIONAL ASSOCIATION OF REALTORS® and Move, Inc.