6 Homes First-Time Homebuyers Should Avoid
There’s no magic formula that will determine what kind of home is right for you. All first-time homebuyers are different. If you work a lot, then buying a home in need of a lot of repairs probably isn’t for you. If you think you might get married and want kids soon, then getting a one-bedroom home might not fit you in a few short years.
While first-time homebuyers are different, but in general, there are a few homes that they should try to avoid.
Here are six homes first-time homebuyers should steer clear of.
The Fixer Upper
Wouldn’t it be so great to take a run-down house and rebuild it just how you want it? The fixer upper may seem like a good idea (after all, they’re usually cheaper), but repairing a fixer upper is expensive, even if you have some construction experience.
If you’re busy at work and with other commitments, then you won’t have time to fix up your home as well.
If you want a fixer upper now, choose an older home that functions well and can be upgraded later when you have the time and money.
The Lost Paradise
The house has a pool, a jacuzzi and a massive garden in the back. Looks great, right? Sure, but will it still look great when you have to spend every weeknight either cleaning the pool or clearing weeds out of the back garden? Will you have the money to keep the pool in good condition?
Some homebuyers have time to take care of a property like this, but not everyone. If you don’t have the time, don’t buy the property.
The Too Cozy House
If you live alone or with a partner or spouse, you may not thing you need a lot of space. But what if you’re planning on having kids at some point in the next five years? That cozy two-bedroom bungalow is going to feel cramped pretty fast.
Before you buy, think about where you’re going to be in the next five or ten years. If kids are part of the equation, opt for a three-bedroom home instead.
The Investment
Every home is an investment, but some homebuyers look at homes as only an investment. While it’s okay to plan for “cool” additions like a three-season porch or an upgraded kitchen, there’s no guarantee that you will see a complete return on your investment when you decide to sell your home.
Buying a home in a less expensive neighborhood and making expensive upgrades won’t always improve the value of your home. Buy for yourself and for the next 10 years, not the next 20 years.
The Too Good
You’ve found your dream home in your dream neighborhood, and it’s $20,000 less than its comps. Sounds like you need to jump on the deal, but before you do so, ask yourself why the house might be priced so low.
Assuming the home is similar in size and bedroom and bathroom count to its neighbors, something must be wrong. The home may need a new roof, or there could be a crack in the foundation.
The Monster
Buying a mansion isn’t a good idea either, unless you win the lottery. Just because you’re planning on children doesn’t mean that you need an enormous house. You’ll just end up paying for a mortgage that you might not be able to completely afford.
Find some middle ground. Stick to something modest that you can grow into. You can always upgrade later, but for now, choose a home that has enough room for you, your spouse and up to two small kids.
Even if you aren’t sure about kids or care that your neighborhood isn’t perfect, your future homebuyers might be more inclined to care. You don’t want to face the same problems selling the house as the current sellers are having right now. Be smart and do your homework before making an offer on a home.