The decision to buy a home is a big one. In fact, home ownership actually represents the single biggest investment likely to be made by most Americans today. The size of this monetary investment alone is more than enough reason why buyers should give some extra consideration to the process.
It makes sense for home buyers to look at their individual situations so they can also factor this information into the process to make sure that the home they purchase is really the very best choice for them, whether it be Lebanon real estate or Watertown homes.
Square Footage Over Condition?
Finding a home that can offer extra space is a popular reason to shop for a home. Many who buy a home for this reason sometimes choose to maximize their home shopping budget by seeking out homes that can offer maximum square footage for the price, even if some of that square footage will require initial finishing or renovations before it can be used.
Some of these possibilities include:
- homes that offer unfinished spaces that could be easily converted into living space, such as those with full or partial unfinished basements, those with large attic spaces , or those with an oversize attached garage that could be partially converted to needed living space
- larger distressed or foreclosed homes that can be bought for a reduced price (these are only a good value if it will be possible to both buy and renovate them within the original amount the home buyer is planning to spend)
- large, older homes that are still structurally sound but are priced lower to reflect cosmetic issues that have made it difficult for them to compete with newer, more market-ready homes
Focusing on Move-in Ready Homes
Purchasing a luxury home that is already in excellent condition and ready for a new owner without making any or only very minimal adjustments often means being willing to pay top dollar. But for some home buyers, purchasing a move-in ready home works best with their situation, making it the best use of their housing dollars.
Some examples of when buying a move-in ready home may be best include:
- home buyers that have sold or are selling their larger home and want to downsize into a smaller, more convenient one
- buyers who have physical, time, or financial limitations that would make it difficult to plan and carry out necessary repairs and renovations
- buyers who need to purchase and move into a home quickly with minimal delays
When is Resale Potential a Large Factor?
Buyers who are in the market now may also want to consider their long-term goals before deciding which home they will ultimately purchase. In most cases, buyers try to plan on owning the home they are buying for at least five full years. This amount of time is often needed in order to recoup the full purchase price and other costs associated with the purchase, such as closing costs and moving expenses. Buyers who will likely need to sell and move more quickly than five years may want to seek to purchase well below their maximum price point in order to limit any losses at that time.
For buyers who plan to stay in the home they purchase for several years, buying with resale value in mind is less important. These buyers should, however, still attempt to purchase a home with no known major issues that will make reselling more difficult years or decades from now. Homes that might be difficult for resale in the future include those in declining neighborhoods and those that may be easily over-improved for the area in which they are located.
Buyers who want to make sure that they are choosing the best possible home for both their current and future needs should consider discussing the matter candidly with their real estate professional before beginning to view homes. Your agent will be able to offer valuable insight into real estate values and market trends in the area that can be very helpful during your home search.
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