Choosing a Property

Foreclosures 60% below market price

Part 2- Choosing a Property

Welcome to part 2 of How To Buy a House. Check out Part 1.

After you have pre-qualified for a loan, you are ready to look for property. When you are thinking about buying a house, keep in mind that most people stay in their houses for 5-7 years.

Statistically, even though you might feel like you found your dream home now, you will probably move. If you remember this while you are looking, you’ll buy better because you’ll buy with the end result- the eventual sale, in mind.
Location, Location, Location
People say “location, location, location” all the time. But what factors make a good location?

1. Choose an area where you can expect good appreciation. This is true for both your personal residence and investment real estate. Regardless of the reason you are buying, you want the value of the place to go up.

2. Near a good school district, ideally the best one in the local area. Even if you don’t have kids, potential buyers might. School districts are incredibly important to parents.

3. Convenient access to shopping and freeways. Do you really want to drive 45 minutes to get to a super market? If you do, expect the property to be difficult to sell later.

4. Good employment opportunities nearby. Both for you and a potential buyer. Commuting robs of you of time and convenience and generally sucks for everyone. Just say no.

5. Notice the local environment. Is the property too close to the freeway or the airport? How about adjacent to the high school or college football field? Once you find a property you like, visit at different times of day. Are you able to sit in your car for a while in the middle of the night without feeling uncomfortable? How about Friday and Saturday nights? Do you want to be able to sleep on weekends? Then avoid college areas.

6. How safe is the neighborhood? Research crime statistics for the local area. Check the property location for sex offenders nearby at www.meganslaw.org

7. Avoid rent controlled areas. This means more flexibility with what you can do with your property and who you can sell it to (investors won’t buy in rent controlled areas).

8. Look for up and coming areas that had previously been depressed and are now showing growth. As the surrounding area improves, your property value will rise at a faster rate than more currently desirable areas. However, don’t sacrifice safety.

9. Think about where baby boomers are buying. The influx of potential buyers will drive up your property value in the coming years.
Other Factors
10. Low to median priced homes appreciate faster and are slower to lose value in a downturn.

11. Buy the cheapest home in the nicest area. Never buy or build the most expensive property on the block. When the values of the nice homes in the neighborhood go up, it will make your property more valuable even though you paid less on average than your neighbors.

I hope that you enjoyed part 2 of How to Buy a House. Next in the series is Part 3- Before You Make an Offer.

Share!

Tags: , , ,