What to Look for When Buying a House?

Once you embark on the journey of home ownership, it brings up the question of what to look for when buying a house. Whether you’re a first-time buyer or upgrading to your dream home, read this first to ensure you know what makes for a good house and what could become a money pit. Follow these tips to avoid buyer’s remorse and ensure you’re comfortable and happy in your new home.

13 Things to Consider When Buying a House

When you go from renting to owning, it’s truly a joy as you get the chance to make the space yours completely and no longer have to wait around for a landlord when something goes wrong. The pride of your first home and even subsequent homes is immense. So as you shop for an ideal living situation, consider these things before purchasing the home.

Price

Sit down and look at your budget. Evaluate what you can afford to pay for your monthly mortgage. Know that mortgages aren’t just the principal and interest. You’ll also be paying your homeowners insurance and property taxes within that payment.

Another major factor in the price you can afford is the mortgage interest rate you receive approval for. Shop around and apply to banks that offer the best mortgage for first-time homebuyers or who specialize in your unique income and credit situation. 

When you apply for a mortgage, the lender will include information about the maximum loan you qualify for. Ensure that you can afford the downpayment for a house of that value and that you’ve left enough in your budget to keep up with maintenance and upgrades on the home.

House Condition

The condition of the home impacts what you pay for it in your first few years in the home. Consider the state of the following and whether you might need to update them immediately when you’ve just spent your nest egg on your down payment.

Cosmetic updates that you can put off until you have the funds include:

• Flooring
• Paint
• Kitchen appliances that don’t have your preferred features

More expensive things to consider when reviewing the home’s conditions include:

• The age and health of the roof
• Age of the HVAC system
• Hot water heater age
• Siding
• Exterior doors that help secure the home
• Windows (are they leaking air and moisture into the home?)

It’s hard to predict when a hot water heater or old HVAC system will go out. Some last far longer than the average life expectancy. But if you purchase a home with systems that are older than 15-20 years, you should have the cash on hand to replace them because they are on borrowed time.

Location

You can’t pick up a home and move it to a new neighborhood, but you can put an addition on it and fix interior features that aren’t to your liking.

Consider how close the home is to where you work and the activities you regularly take part in. Think about where you’ll shop, the schools your children might attend and what entertainment venues are nearby.

Evaluate the noise level. If it’s in a busy city, you might not be able to relax on the back deck or front patio. It might impact your ability to host social gatherings if street parking is always in use or you might not care for how the neighbors keep up their homes.

Make a list of amenities that matter to you and then rank homes as they come on the market to see if they’ll fit in with your lifestyle.

House Size or Layout

Before you get too deep into your house shopping experience, make a list of rooms and features you want the home to have. Do you want the garage to flow right into your kitchen? How many bedrooms do you need? Will you be working from home and need an office? If so, what floor would you prefer the office to be located on?

How many bathrooms will best work with your household members and any possible guests you hope to host? Are you planning to grow your family while you live in the home? If so, how can you future-proof the home?

Nearby Amenities

Some homes put you right in the middle of everything you need to live, such as walking trails, grocery stores and home improvement stores. Others have a long drive to these amenities.

Look at how you live and what you need nearby. Consider whether you prefer to use your car minimally and walk and bike to major shopping locations or if you’re comfortable with needing to start up your car to get anywhere.

If you have a fitness club you love, look at the proximity of the closest one. Or if it’s important to you to be close to a church or other religious organization, look at your options and see how they fit your worship preferences.

Homeowners Association Rules

Some homeowners associations (HOAs) are strict about what you’re permitted to do with the exterior of your home. The HOA might dictate whether you can put an addition on the home and change the exterior colors or where to store your garbage bin.

Read the HOA requirements before signing on the title for a new home. This will tell you if you’ll be able to update the home to meet your preferences.

Look to see what structures you can put up, animals you can have on property or easements you should be aware of.

Home Inspection Report

Once you put an offer on a house and the seller chooses your offer as the winner, you’ll get a chance to go through the home with a licensed inspector, unless you waived that right to help make your offer more attractive.

Try not to get emotionally involved with the house just yet until you’ve completed the home inspection. The inspector might find serious issues, such as signs of termites or mold, that would make you decide this isn’t the home for you.

Review the report to see what you’re comfortable taking on. You have a chance to go back to the seller and ask that they fix things before transferring ownership unless you waived that right as part of your offer.

Commute Time

Look at how long it will take for you to get to work or your child’s school. Test drive the commute during rush hour to see not just how far but how long it will take to navigate to your office.

Some homeowners prefer to use public transportation to get to and from school and work. If so, look at the nearby stops or carpooling parking locations near the home.

School District 

If you have children or hope to welcome children into your family while living in the home, look at the quality of schools. Don’t just look at the school district as a whole but check the specific schools your home is assigned to.

As you look at school ratings, consider teach-to-student ratios, test scores and online reviews from parents and students to learn more about their experience at the school.

Parking Options

Check whether the home has a garage and if it attaches to the house. Look at how much street parking is available and if you’ll have a driveway to park when you use the garage for something else.

Some homeowners need a place to park an RV, boat or other recreational vehicle. If you plan to have these vehicles, make sure there is ample space for them and that the HOA does not restrict your ability to have them

Property Taxes

Each city, township and municipality has varying property tax rates. Ensure that you can pay the property taxes. Going from one city to another could impact your mortgage payment by as much as a few hundred dollars per month for a home that is the same size. Even once you pay off your mortgage, you’ll continue paying property taxes throughout the time you own the home. Consider whether the payments will be realistic and know that the taxes will likely increase as the area grows and your home appreciates.

Crime Rate

Check the crime reports for the neighborhood and surrounding area. See if there are frequent break-ins or violence. You don’t want to feel uneasy in your home or like you can’t take a walk through your neighborhood at night.

Resale Value

Evaluate whether the area is on its way up or down to see how well the property will hold its value or appreciate with time. If you hope to add onto the home or adjust it in some way, look to see whether you’d be pricing yourself out of your neighborhood, meaning you won’t come close to getting the money back out of those improvements.

Some homeowners believe they’ll be in the home for life and don’t want to consider the resale value. And while that’s great and often a wise money move, sometimes you can’t anticipate job transfers or longing to live in another area. You might also find you’ve outgrown the home one day even with the best planning when you first purchased the home.

Warning Signs to Be Mindful of When Purchasing a Property

When you’re shopping for a home, these red flags should tell you to keep looking.

• Mold: Look under the sink cabinets and check the shower for gray or black spots. This could indicate mold, which can be challenging to mitigate.
• Foundation problems: Look around the walls for cracks or signs that the home is sinking or the foundation is not holding it up properly anymore. If the home has a basement, you can look for bowing in the basement walls or exterior signs that the home is sinking.
• Poor maintenance: Many homes that haven’t been cared for well can be fixed. Others cannot. If the owner ignored signs of intrusive water or pests, the home might be beyond repair. Look out for homes that have not been cared for.
• Water damage: If you walk into any room of the home and it smells musty, there is likely water damage. And where there’s water, there is mold, and too much water can lead to foundation issues or compromises to the home’s walls. 
• Flood zones: Not all flood zones are bad. But you might have to pay for flood insurance if the home is within a flood zone, which could increase your monthly payments. Ensure you’re ready to take on that risk and expense.
• Bad DIY projects: Some homeowners try to complete projects like window replacements or electrical work without the proper know-how or support from a professional. Look out for these projects and ensure you aren’t taking on more than you can handle.
• Bad ventilation: Homes that can’t breathe can lead to mold issues. You’ll see this in condensation on the windows or bubbled and peeling paint near doors and windows. That might be a sign that there is moisture in the walls.

Compare the Top Home Loan Providers From Benzinga’s Best Mortgage Companies

Getting mortgage pre-approval is an important first step in shopping for your new home. Check out these learning home loan providers to get started.

Finding Your Dream Home Without Buyer’s Remorse

On the surface, some homes look ideal. And then the closer you look at it, the more you realize there are major red flags. Do your due diligence before purchasing a home to ensure you’re truly buying your dream home and not a money pit that will give you major buyer’s remorse.

Frequently Asked Questions