Published July 19, 2024 by Susan Kadilak
Buying a home is a monumental step in life, often filled with excitement, anxiety, and a whirlwind of decisions. With over two decades of experience in real estate, I've seen it all. There are a few key insights that can make your home buying journey smoother and more enjoyable. Here are five crucial things you wish you knew before buying a home.
1. Hidden Expenses Surprise Many First-Time Home Buyers.
Buying a home isn't just about the mortgage payment. The true cost of homeownership includes property taxes, homeowner's insurance, utilities, and maintenance. Many first-time buyers are caught off guard by these expenses. For example, that charming Victorian house may have higher heating costs or require more frequent repairs due to its age. Always budget for the unexpected, like a sudden need for a new water heater or a plumbing leak.
Tip: Create a detailed budget that includes a buffer for unexpected expenses and repairs.
2. The Importance of Location
The adage "location, location, location" holds true for a reason. The location of your home affects everything from your daily commute to the quality of local schools, and even your home's future resale value. Consider proximity to amenities like grocery stores, parks, and places you travel to frequently. A less desirable location might offer a lower purchase price but could impact your lifestyle and long-term investment.
Tip: Spend time in the neighborhood at different times of the day and week. Talk to residents (or even the mailman- he knows everything!) to get a feel for the community. Research local crime rates, including the sex offender registry, and school ratings to ensure the area meets your needs.
3. Market Trends can Make or Break Your Home Purchase.
It’s not uncommon for parents of first time home buyers to give advice on how much to offer on a home. The problem is that advice is usually based on how the market was when they bought their last home… which is often very different! Understanding the market trends and having a strategy in mind will help you make well informed decisions throughout the process.
Tip: Work with a knowledgeable real estate agent who can provide insights into local market conditions and guide you through the timing of your purchase.
4. The Value of a Thorough Home Inspection
A home inspection is a crucial step in the buying process, revealing potential issues that aren't visible during a casual walkthrough. Inspectors check for structural problems, electrical issues, plumbing defects, and more. However, in the crazy competitive Greater Boston market, it’s sometimes difficult to get an offer accepted with a home inspection contingency. But, that doesn’t mean your only option is to waive it. Consider these alternatives:
- Pre-offer inspection
- Inspection for informational purposes only
- Walk through with a contractor prior to making an offer
- Limited scope inspection
- Inspection after P&S
- Shorten the contingency window
I recently worked with some first-time buyers who were initially comfortable waiving their home inspection. However, the property had both private water and a septic system. Since this was in New Hampshire, and there was no mandatory Title V inspection for the septic system, I wasn’t comfortable leaving such critical aspects unchecked. We ultimately decided to waive all inspections except for the septic system and water quality testing. While it wasn’t an ideal situation, it provided peace of mind on these major components of the property.
Tip: Choose a reputable inspector and consider creative alternatives to a traditional home inspection contingency. Don’t be afraid to do additional specialized inspections if necessary, such as for pests or mold.
5. The Home Buying Process is an Emotional Rollercoaster
Buying a home can be an emotional rollercoaster, complete with exhilarating highs and nerve-wracking lows. Sometimes, I feel more like a therapist than a real estate agent! The thrill of finding the right home can quickly turn into stress over bidding wars, securing financing, and navigating the closing process. It's natural to get attached to a specific property and feel disheartened if things don't pan out. Even when everything goes smoothly, the whole experience is inherently disruptive and can add a layer of stress to your daily routine. Big changes like this are bound to shake things up.
Tip: Stay focused on your priorities and budget. Remember that there will always be another house that could be the right fit. Lean on your real estate agent for support and advice throughout the process.
