Karen Adelson's Blog
53 Lexington Drive, Acton, MA 01720
The concept of a starter home is an American tradition that has existed for decades. Buying a starter home makes it possible to achieve homeownership, financial independence, and to build equity and credit while you transition to a larger home.
However, your first home doesn’t need to be a tiny, one-bedroom house with none of the amenities that you want.
In today’s post, we’re going to look at some of the things that are desirable in a first home or starter home, so that you can make the best financial decision now that will help you save more in the long run.
Top things to look for in your first home
1. Resale value
Perhaps the most important thing to think about when buying your first home is the day that you eventually decide to sell it and upgrade. There’s a lot that goes into the purchase value of a home. But, if you maintain the home or even make some upgrades, there’s a good chance you’ll be able to sell it for more than you paid.
Other factors that affect resale value are the location and real estate market trends. While you may not be able to change the economy, you can choose to buy a home that is in a location others will find desirable in the coming years.
The cost of your first home will be determined by its location, as mentioned before, but another huge factor will be the size or square-footage of the home and yard.
If you don’t plan on having children in the next few years and don’t currently have kids at home, having several bedrooms and a large backyard probably aren’t huge priorities. This means you’ll be able to save by buying a small home on a small property.
Similarly, if it’s just you and a significant other living in the home, you may be comfortable with just one bathroom for the next few years. These omissions can save you a ton of money on your first starter home.
3. Transportation and proximity
Typically, when people buy their first home they are just getting settled into their career and may still change jobs a few times. Most workers in today’s economy change jobs between 10 and 15 times throughout their career and do so more often toward the beginning.
This means it will make sense for you to buy your first home within commuting distances to companies in your industry.
4. DIY and fixer-uppers
Homes that are in need of repairs or renovations can be a great way to save money and see a return on your investment when you decide to sell. Of course, there are limits to how many repairs are reasonable while still getting your money’s worth from a home.
You’ll know from your home inspection or by doing a walk-through with professional contractors how much work is required to bring the home up to standards. Use those resources to ensure that you’re making a sound financial decision for your first home.
Selling a house is no small feat, particularly in a competitive real estate market. As such, home sellers may be prone to make mistakes if they don't plan ahead for potential pitfalls.
Common home selling mistakes include:
1. Listing a Home Without Performing Housing Market Research
Let's face it – selling a house can be stressful. In many instances, home sellers will want to speed through the home selling journey – something that may lead these sellers to list residences without evaluating the real estate market in advance.
Spending even a few minutes looking at the prices of homes in your city or town may make a world of difference. Ultimately, the more housing market research that you perform, the more likely it becomes that you'll be able to optimize the value of your house.
Take a look at the prices of available homes in your city or town that are similar to your own. Also, evaluate the prices of recently sold houses in your area. With this housing market data at your disposal, you'll be better equipped than ever before to price your residence competitively and boost your chances of a profitable home sale.
2. Accepting an Initial Offer on a Residence
The first offer that you receive on a residence may prove to be the best offer. However, in some cases, the initial offer may fall short of your expectations.
Immediately accepting the initial offer on a residence may prove to be costly. Fortunately, a home seller who understands the housing market can take a data-driven approach to determine how to proceed with any offer, at any time.
Performing a home appraisal before you list your residence can provide valuable insights into a property's value. Then, you can list your house for a competitive price, one that helps generate substantial interest in your house and may lead to offers at, near or above your initial asking price.
In addition, don't forget to consult with a real estate agent. If you receive a home offer and are unsure about whether to accept, reject or counter it, a real estate agent can provide expert advice to help you make an informed decision.
3. Ignoring a Real Estate Agent's Recommendations
A seller's agent is committed to helping you optimize the value of your residence, and this housing market professional will offer recommendations as you sell your house to ensure you that can get the best results possible.
If you ignore a real estate agent's recommendations, you may miss out on a golden opportunity to sell your house. A real estate agent provides housing market analysis and insights, along with honest, unbiased recommendations about how to overcome a wide range of home selling hurdles.
Furthermore, a real estate agent always has a home seller's best interests in mind. This housing market professional also is available to respond to a home seller's questions, guaranteeing that a home seller is fully supported at each stage of the home selling journey.
Ready to sell your house? Collaborate with a real estate agent, and you should have no trouble achieving your desired results.
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