Things To Consider Before Buying Your First Home

Posted on: 6 January 2017

Buying a house for the first time is exciting. In fact, for some first-time home buyers it's so exciting that they get caught up in the fun they're having and overlook important details. There are several things that you need to take into consideration when you're purchasing your first home. After all, a house is a huge investment, and you'll be adding a huge amount of debt to your financial portfolio to get it. So before you even start looking for a real estate agent, you should take some time to think about these things.

Future Housing Needs

Real estate agents often show first-time home buyers a range of properties that are billed as starter homes. Typically, a starter home is a smaller house that needs some repairs. Because of this, starter homes are often cheaper than other homes on the market, but while they are ideal for some people, they aren't a good option for everyone.

If you're planning to have children in the future, a starter home may not be a good option for you. Many people purchase starter homes with plans of selling the house and moving to a bigger one when they start a family. Unfortunately, you can't control the housing market. You need to have a solid long-term plan. What would you do if you were ready to start a family, but you couldn't afford to sell the smaller home and purchase a larger one or afford renovations to expand that smaller house? If you don't have a lot of expendable income, it may be a better option to have your real estate agent show you houses that you can live in long-term.

Some people purchase smaller starter homes to live in when they are first starting out with plans to rent out the property and purchase a bigger home later. If this is your plan, a smaller house might be a good option for you. However, make sure you purchase a home that will be easy to rent in the future — location, size, and price all matter to renters.

Wants vs. Needs

When you're looking for a house to buy for the first time, it's easy to be overly impressed with the cosmetic features of the home. However, what appears to be your dream home at first glance may not actually be the right home for you. You need to make sure the house has all of the features that you need to live comfortably. Keep in mind, unless you're building a new home, there's a good chance you'll have to make some compromises. This is why it's important to know the difference between the features you need and the features that you want. It's a good idea to make a list of everything you'd like to have in a home and prioritize it. That way, if you have to make a few compromises when selecting a home, you aren't accidentally giving up a feature you need for a feature that you don't really need but would like.

Remember, it's important to give your realtor as many details as possible when you're looking for a home. This way, your realtor can show you properties that are most likely to fit all of your needs.