15 Things to Look for When Buying a New Home

15 Things to Look for When Buying a New Home
How can you make sure you find the perfect property?
Buying a house can be an emotional decision as well as a financial one.
While it's easy to get caught up in superficial features, it's important to look at a few key criteria when purchasing a property. Specifically, you'll want to be on the lookout for these 15 things to ensure you get a home you'll be happy with over the long haul -- and one that's a good investment as well.
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1. A great location
Location is everything in real estate. It can't be changed, and it plays a huge role in determining whether your property holds its value.
Be sure to research different locations carefully and make sure the house you buy is in a good place. It's better to buy the worst house in the best neighborhood than purchase a home you like but that's in a bad spot.
ALSO READ: 3 Pieces of Toxic Real Estate Advice You Must Ignore
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2. A short commute
Commuting can have a profound impact on your day-to-day happiness. If your home's location pushes you into a long and stressful commute, this will leave you less time with your loved ones, as well as a lot of headaches.
Make sure your home is a comfortable distance from work, family, and recreational activities, so you can avoid dealing with the daily misery of an unpleasant drive.
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3. HOA rules you can live with
If your new home is in a neighborhood with a homeowners association, be sure you understand the rules. You don't want to find yourself facing unexpected fees, fighting with the association, or unable to do what you want with the property.
You'll also want to know when and how rule changes can occur so that you aren't caught unprepared by regulations that crop up later.
ALSO READ: HOAs Aren't All Bad. Here Are 3 Benefits to Joining One
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4. Affordable property taxes
Your mortgage principal and interest aren't the only payments you'll have to make after purchasing a place. You will also need to pay property taxes for the duration of your time in the home.
Property taxes can sometimes cost as much as your mortgage in expensive areas. So, be sure you know how much taxes are on any home you're considering and that you confirm they'll fit comfortably into your budget.
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5. A home that will appraise for what you pay for it
When you get a mortgage to buy a home, the lender will typically require a home appraisal. This is a professional assessment of the property's value.
If your home appraises for less than you've offered to pay for it, it could affect your ability to qualify for a loan. You may have to bring more money to the table -- or may not get a mortgage at all.
You'll want to avoid this whenever possible, as an appraisal that shows the home isn't worth what you're paying for it is a major red flag. That's why it's helpful to make your offer to buy contingent on the home appraising for enough.
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6. A floor plan that works for your lifestyle
A home's floor plan is also very difficult and expensive to change, so you'll want to make sure you're comfortable with the layout.
Consider issues such as whether the bedrooms are removed from living areas so they will be quiet, and whether the spaces in the house will work for your family's needs.
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7. A good school district
A good school district is important even if you don't have kids, as it can profoundly affect property values. Be sure to check the schools' ratings. Poor-quality schools could mean no parents will be interested in buying the home from you in the future.
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8. A home priced comparably to similar properties
You don't want to overpay for your property relative to what similar homes have sold for. Otherwise, you could end up with a home worth less than you paid for it.
You can check comparable sales that have occurred in recent months to get an idea of whether the price you're paying is a fair one. Your real estate agent can also help with this.
ALSO READ: 3 Charts That Show Why the Housing Market May Be Starting to Cool
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9. A safe area
You don't want to risk your safety, so be sure to check out the level of crime in any area where you're considering buying a home.
Safety is also an important issue for future buyers, so this can affect the resale value as well as your own ability to be comfortable in the property.
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10. A home with parking if you have a vehicle
If you have a car, you may want to prioritize looking for a home with parking. Having a garage, or at least a private driveway, can lower your auto insurance costs -- as well as make your life easier since you don't have to hunt for a space.
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11. An affordable property to insure
Home insurance is another ongoing cost you'll have to pay after purchasing a property. Unfortunately, it can be very expensive if you've bought in an area prone to disasters such as floods or fires.
You should be able to find out whether the house is in a flood zone before you buy, and you may even be able to get estimated insurance quotes before committing to a purchase.
Take the time to research this issue so that you don't end up stuck with an unaffordable insurance bill the entire time you live in the home.
ALSO READ: 4 Reasons to Consider Switching Homeowners Insurance Companies
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12. A home with major components updated
Some home features, such as the roof, plumbing, and electrical system, can be very expensive to fix. Be sure that these components are relatively new and in good condition.
If they aren't, the home should be priced much lower -- and you should be comfortable undertaking major repairs. Otherwise, you won't want to make the purchase.
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13. A home free of restrictions you can't live with
If the property you're interested in purchasing is located on wetlands or in conservation or historical districts, you may be subject to many restrictions on what you can do with it.
Be sure to research these issues before you buy. You don't want to discover after the fact that you can't put in the pool you've been dreaming of or paint your house your preferred color.
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14. A house that will work for your lifestyle for the foreseeable future
Typically, it makes sense to buy a house only if you're planning to stay in the property for at least a few years. Otherwise, you'll likely lose money due to the high transaction costs of buying and selling real estate.
That means you should think about how your family and personal circumstances might change in the coming years and make sure that the house will work for you for a while. If you expect to outgrow it soon or need to move for your job, think twice about purchasing it.
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15. A property market that’s likely to benefit from continued appreciation
Finally, you'll ideally want to buy in a location where property values are rising. This will help to ensure your home is worth more over time, so you end up with a valuable asset that grows your net worth.
A realtor can help you assess the market in your area, and you can also research trends in home prices and population growth to help you estimate whether demand for similar homes is likely to remain strong.
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Keep an eye out for these key criteria
By looking for these key criteria, you should hopefully be able to find a house that increases in value -- and one that you enjoy living in for the foreseeable future.
That way, your property purchase will help you build wealth and provide you with a place to set down roots and make memories.
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