Buy A Home
That Makes You Money.
A home can be a great investment if you make the right decisions and take the right steps to insure it's potential down the road. You just need to know what to look for. In this post you'll learn how to spot a home that goes up in value and the six key factors to consider when buying.
If you want your home to appreciate in value, be smart about the neighborhood you choose. You can change many things about a home, but the piece of land it sits on—and the schools it’s zoned for—isn’t one of them. Also, beware of neighborhoods with for sale signs lining the street. If half the neighbors are getting the heck out of dodge, take that as a clear sign to plant your roots elsewhere.
The whole “bigger is better” mentality drives many buying decisions these days. Don’t be afraid to go against the norm. Leave margin for growth by buying at the bottom of the price range in the best neighborhood you can afford. For instance, let’s say the home you’re eyeing is the only one on the block without wood floors and granite countertops, and you have the cash to make those upgrades. Boom! You’ve got a chance to add instant value to your home.
Most folks know the importance of curb appeal when it comes to selling a home. But what about buying? If a seller didn’t get the first-impression memo, should you overlook a home’s not-so-great outdoors? If you’re willing to do the work yourself, you may find a great deal hiding behind those overgrown hedges.
Just make sure the neglect doesn’t creep inward.
You can fix bad décor, but you can’t fix how a home functions and that’s what really counts. Look at it this way: do you want to your kids fighting over the only upstairs bathroom? Neither does the next buyer.
Want to know the best money detector you can buy? A home inspection! Always hire a certified home inspector to assess a home’s condition before you sign the dotted line. How do you know when to walk away? Here are a few red flags to make you think twice about your purchase:
Of course, repair costs play a big role in your decision. But it’s also important to determine whether you can make the problem go away for good. A leaky roof, while expensive, is quite doable compared to a sinkhole. A good real estate agent can help you make sense of the home inspection findings so you can make the right decision for you and your budget.
Nothing turns your dream home into a nightmare faster than being house poor. Keeping your mortgage to no more than a quarter of your monthly take-home pay and putting at least 10–20% down on your new home. It’s also wise to partner with an experienced real estate agent (I know a guy!) who can help ensure you don’t pay too much for your dream home. Look for an expert negotiator who brings your best interests to the table and takes time to explain all the factors that go into a smart home purchase (I know a guy!). With the right pro by your side, you can feel confident that the home you buy will bless your family for many years to come (I know a guy!).
Those my friends are the 6 best steps to buying a home that will appreciate in value and make you money in the long run. Thanks for reading!