Part 2: Shopping for a Home
It’s All About Location, Location, Location!
Finding the perfect location may be a balance of several factors. Whether you are looking for an up-size for your growing family, a shorter daily commute to work, and/or the quick retreat to the hobbies that you enjoy, it will be important to choose the perfect location for your home. If you have children, for example, you are going to want a location that will be safe for them. It may be important that they are able to safely walk to and from school or the school bus. You may be a bit more concerned about crime rate in a particular neighborhood. Additionally, you may want a yard for them to play in.
You may also want your home to be closer to your workplace, minimizing your mileage and ultimately driving down your yearly spending on automobile-related costs. Not only will this lower your costs for your transportation (if you even need to pay for transportation), this also has other benefits. According to recent studies, living closer to work may help with your productivity in and out of the workplace due to less time spent commuting. You will have more time for your hobbies and enjoying your social life than if you were to spend 2 hours a day traveling to and from work. You will be less fatigued from your drive home that you may be more inclined to stop at the gym to workout, or head to your nearest grocery store to buy food and cook dinner as opposed to ordering out. Living close to work has many perks for your health, as well. Other benefits include reduced stress-level due to getting adequate rest, saving more money for future vacations or hobbies more quickly, a better relationship with your significant other because you’ll simply have more time with them, and less opportunity for accidents and/or crime-related situations to occur. These aren’t the only benefits to living closer to work, but these are just some examples.
How Much Will My Dream Home Cost? And Why?
Your location will be the biggest impact on the actual cost of your home. However, with the aforementioned benefits, these perks may outweigh the initial investment. One of the largest impacts to a home’s value is location! How close your home is to social, shopping, or more touristy attractions will greatly impact the value of your home. The closer you are to these destinations, the more you will pay. The key is to find the perfect balance of cost and location to the activities you like to do the most.
Another impact on the cost of your home will be the actual size of the home. The more square footage your home occupies, the more you will be paying. Most listings will actually have a cost per square-footage ratio to help you make comparisons between ideal homes. Simply put, a home with three or four bedrooms, each with an accompanying bathroom will most likely cost more than a home with one bedroom and one bath. Remember, this may not always be the case due to location being the biggest impact on possible cost. A one-bedroom one-bath, eight-hundred square-foot home on the beach may cost several times more than a three bedroom with three bathrooms more inland, in more rural areas.
If your home has been recently remodeled or upgraded, this will also increase the cost. If you have a kitchen with brand-new stainless steel appliances, granite counter-tops, washer/dryer, and a Jacuzzi in the master bathroom, these costs will most likely be factored into the price of the home.
Additionally, you can have amenities in your home that would also be factored into the price. For example, if you have basketball court in your backyard along with an in-ground pool with a screen-enclosure, you will most definitely be paying for these amenities.
Overall, the balance between all of these will be important in determining what you would like to pay for your dream home. You may need to compare the price of installing any additional upgrades or amenities yourself after the purchase of the home, which may actually cost you less, while also increasing the value of your home. A good example of an upgrade that will greatly increase the value of your home is upgrading the kitchen after purchase.
Next, we’ll be going into the intricacies of shopping for a HOME LOAN.
Part 3A: Beginner’s Guide To the Home Buying Process: Shopping for Home Loans: