You’ve heard the adage, “location, location, location”, implying this critical factor determines the demand and value of Real Estate. I’ll concede, typically the more desirable the location, the more valuable the asset—especially if you’re talking lakeside, seaside, or mountainside. Those vistas are called “million-dollar views” for a reason! But when you’re buying, how much value and weight should you put on your new home’s location?
I advise clients—they are buying the neighborhood as well as the house; and although you can change many things about a home, you cannot change the lot or location, so it’s important to make absolutely sure you are content with both.
But is it the most important factor? Definitely not. Here are the Top Five Most Important Factors to consider when choosing your new home:
1. Affordability—Few things are more debilitating than debt that won’t subside. A car payment that’s uncomfortably high, taking every spare cent; credit card debt that just won’t decline; or a house payment that cripples your ability to live comfortably, save for your future, and maintain your home.
Buying a house that payment doesn’t make you cringe, allows you to improve and maintain your home, and enjoy your life. Real Estate is a fantastic investment. Your home appreciates while you get the benefit of living there. Avoid the mistake of becoming “house poor” where all your discretionary income is required to make those payments. Buy something you can comfortably afford. Your first house is very rarely your last.
2. Condition—It’s important to evaluate major components that are most costly to repair or replace. It’s tempting to fall in love with the “updated, move-in ready” house that has fresh paint, new countertops, brand new flooring, and shiny new appliances.
But if the windows are 30 years old, the roof needs replacing, and the mechanicals are original, you could be in for $100,000 or more in repairs and maintenance in the first few years of ownership. Always have a Home Inspection prior to buying and ensure the inspector evaluates the roof, windows, foundation, siding, and mechanical systems (well, septic, furnace, A/C, and water heater). Be prepared to save for replacement when these items reach the end of their useful life, or negotiate discounts, credits, or repairs as part of your purchase. Better yet, look for a home that has already invested in replacing these costly items so you don’t have to worry and can save for other important items or life events.
3. Lot and Location—Although you can improve your lot with landscaping and décor, you cannot change it: what it backs up to, how close the neighbors are, what may be built around it in the future, how busy the adjoining streets are, or where it’s located. Ensure you choose a home in a location you’re comfortable commuting from and coming home to. If you cannot stand the bright lights in the parking lot across the street, it’s probably not the home for you. This is meant to be your sanctuary—pay attention to what may detract from your ability to enjoy living here.
4. Layout—Consider the floorplan and how the house flows, the square footage, whether it’s a ranch, rambler, two-story, split level; if has a basement, the number of bedrooms and baths—the layout has to work for you, your family, your lifestyle—if you work from home now, if you need an in-law suite, etc.
However, if the layout is not ideal, explore how you can be creative and repurpose space. A loft can be an office, an office a bedroom, a bedroom can be a den, craft room, or a workout area. When you’re in the home, envision your life in the spaces the house has to offer. Look for spaces that can be repurposed or can be finished to offer you what you need.
5. Finishes—Are easy fixes. Paint goes a long way in changing the look and feel of a space. It’s hard not to see what’s right in front of you—that pink room, that orange carpet, the lime green door, the outdated lighting, the wood paneling in the basement, or the ash-stained brick that surrounds the fireplace… but those things are easy and relatively cheap to update.
If you want a home to be “move in ready” consider what that really means. There’s a big difference between renovation and remodeling. Don’t trade the value of a new roof or windows for the allure of shiny new appliances.
We all need that person to remind us to breathe, to bring us back to reality when our heads are turned by something that grabs our attention and our common sense is replaced by something really pretty–whether that’s gorgeous birch cabinetry and stunning quartz counters, or a 30 x 50 pole shed! A great agent helps you see the forest when all you see are trees, they remind you that the roof and siding are brand new and a new appliance package can be easily negotiated and new carpet installed in a day. If you’re looking for “that person”, a voice of reason coupled with a wealth of success and experience, I’d be honored to take your call.
