First time home buyers can make the task of finding the right home for sale a lot less complicated by having an awareness of the steps in the home buying process. Once you get to know these easy steps, you will be able to make the best new home purchase to suit your needs and budget. Valuation of the home or determining what the home is worth from your perspective is one of the most important steps in the home buying process.
In the book, “Home Buying for Dummies”, authors Eric Tyson and Raymond Brown specified that the true value of the home does not only consist of the price. Since value means different things to different people, there is a need for the individual home buyer to be able to identify what are the most important elements that they would like their new home to have. What the true value of your new home is based on what it is worth to you and the benefits that you will get from making the investment.
The first step that a home buyer can take is to review the actual dollar cost of the home and compare it to the other homes in the same neighborhood. This can be done by taking a look at the MLS listings of the specific area. Finding out what the original purchase price of the home for sale can also help, but if the purchase was not within the last 3 years, you cannot make an accurate assessment and use the original purchase price a basis for review. To use the original purchase price to aid in your assessment, see if the property has devalued or if its value has increased withing the time period since the seller bought it.
The second step that a home buyer can take is to figure out how much repair work is needed and what the cost will be. Ask yourself a few questions like “If I move in next week, what has to be done to make it livable and lovable?” or “What needs to be fixed and how much will it cost?” Sometimes, the cost of repairs is factored into the asking price but if it is not, it is to your advantage to know what the add-on expenses you may be facing in the near future.
The third step in determining the value of the home is to project what it may be worth in three years, ten years or twenty years. Is the home located in a brand new subdivision or an historic part of town? What is the average appreciation value of the home year to year in that particular neighborhood? The appreciation value may be a powerful ‘pull factor’ for a particular property, especially if you are a first time homebuyer in a buyer’s market.
When deciding which among the many homes for sale to purchase, try to look at the different properties available in the various neighborhoods to see what best suits your needs and your budget. Finding out what the true value of the home that you are interested in goes far beyond the price of purchase. There is more to a buying a new home that just what simply meets the eye. Find out more about the current homes for sale in the different neighborhoods and what benefits you can get as a first time home buyer.
Author: Alexandria P. Anderson specializes helping people to find and purchase Minneapolis Condos, as well as Minneapolis Lofts for her Minnesota real estate clients.
