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Things to look for when buying a house include the property’s condition, nearby amenities, resale value, and the school district. 

Intro: 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, it’s important to have a checklist when touring properties. Things like the home’s location, school district, nearby amenities and more may affect your decision to put in an offer. 

In this guide, we’ll discuss the top things to look out for when buying a home. Follow these tips to avoid buyer’s remorse and ensure you’re comfortable and happy in your new home.

How Does Buying a House Work?

The process of buying a house differs depending on the type of home you’re buying and the mortgage type you’re using to buy it. Generally speaking, you’ll put an offer on a house, apply for a mortgage to cover the asking price, close on the house and then begin making monthly payments to the lender supplying your mortgage. 

“When you are ready to purchase a home, be sure to make a list of all the needs and wants that you would like in your new home,” says Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union. “Some of the biggest factors could be location of the home as well as having a yard or the layout of the home. Many people tend to get hung up on the aesthetics of the home but there are plenty of loan products available to help you remodel those features you dislike, making your house more of a home.”

What to Look for When Buying a House

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 is the mortgage interest rate. Shop around and apply to banks that offer the best mortgage for first-time homebuyers or that 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 down payment and that you’ve left enough in your budget to keep up with maintenance and upgrades on the home.

House Condition

Consider the state of the following and whether you might need to update them immediately or if you have time to replenish your nest egg that you just spent on the 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 condition include:

• The age and health of the roof
• The HVAC system
• Hot water heater
• 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 they’ve been operating for more than 15-20 years, you should look into upgrading them sooner rather than later.

Location

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?

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 or bike to major shopping locations or if you’re comfortable 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 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, 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 and if there are any monthly HOA fees you’ll have to pay. 

Look to see what structures you can put up, animals you can have 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 waive 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 teacher-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. 

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 in value.

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.

What Should I Look for When Buying a House? 

On the surface, some homes look ideal, but when you look closer you might notice some 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.

• Check for any disrepair or parts of the house that may be deteriorating 
• Check the location, and note the parking situation and what your daily commute may look like 
• Consider nearby amenities like parks, museums and other things to do 
• Look into the school district to see if it’s a good match for your child’s needs 

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union.

Frequently Asked Questions 

Sources

• Kylee Gladwell, mortgage loan officer at Wasatch Peaks Credit Union