In the past, many people saw their first home as a “starter” property. They’d live in a house for a few years, sell it, and move on to something bigger. However, as the real estate market has changed, this line of thinking has fallen out of favor. The market is more friendly to buyers than sellers, which means it makes more sense for people to purchase a home that can grow with them. We will go over things to keep in mind when shopping for a home that will fit both current and future needs.
Newlyweds buying their first home won’t need much space, but it is likely that that will change down the line. Home buyers should think about how much space they may need 10 years from now and not just what they need right now.
Families who want a home that will grow with them need to give serious consideration to their future. Is the house in a strong school district? Is the yard large enough for a dog? Write down these things and discuss your future goals and plans. The more that people understand their goals, the easier it will be for them to find a house that can accommodate those plans.
While many people are drawn to homes that are turn-key ready, it often makes sense for people to change a property over time. It allows homeowners to get more for their money and increase the overall value of their property. An unfinished basement could become a beautiful media room. A large yard could accommodate a brand new shed. A cramped kitchen could be expanded, making it perfect for entertaining. Although there are a few perfect homes out there, it is quite possible to transform a property into the perfect place for them.
Many people have happily signed papers on a home that did not meet all of their needs assuming that they could just remodel it later on. Unfortunately, many of those people have wound up disappointed. Remodeling is a challenging process and some renovations are more difficult to make than others.
It may not be possible to add another bathroom to the property or to expand and add additional rooms. Before planning around future remodels, home owners should learn what is and isn’t possible. In some cases, it can be a good idea to have a contractor take a look at a property before committing to purchasing it.
Larger homes tend to be more expensive than their smaller counterparts which leads to higher mortgage payments. However, if buyers are willing to work with a mortgage broker, they can still negotiate very affordable rates.
Mortgage rates fluctuate regularly and a good broker can always find a better deal for clients. A great rate can significantly lower monthly costs and can leave buyers with more money to put towards renovations.
Many buyers stretch their budgets when buying their forever home. They assume that they will make more money in the future and that their monthly payments will become more manageable. However, the future is unpredictable. It makes more sense for buyers to keep their monthly payments low so that they can save as much cash as possible.
Even if buyers are buying more house than they need, they should not buy more than they can reasonably afford. It is better to settle for a house that needs work than to splurge on a house that could go into foreclosure. These days, buying a starter home is not always the most practical option. When buyers make smart choices, they can make their first home their last home.
Jeremy Johnson is a real estate enthusiast and has written content for dozens of real estate and related sites around the world. RealEstateCompanies.info is a side project he maintains because of his interest in real estate.