New Home Buying Tips

Most people will make one of the largest purchases they will make in their lifetimes when they buy a home. Whether it is a new home or an existing home that is listed on the Multiple Listing Service(MLS), there are many home buying tips that apply. New homes fall into a special category and we are going to focus on new home buying tips in this article, although many of these tips can equally be applied to any home purchase.

There are many areas to consider. We will list a few of these and then expand on each in this article. Location, schools, services, future plans, orientation, construction, builder reputation, extras, model home, financing, agents, selling your current home, and investment. You may feel that some of these new home buying tips are more important than others. That’s ok, since everyone is in a different situation and should apply them to their personal situation.

Location is one of the most important considerations. It affects the price you will pay for the home, the future sale, access to transit and commuting, access to shopping and leisure activities. Along with location, many people like to be near their children’s schools and also to all of the services they will use. Allowing your child to walk to school in a safe environment is paramount as well as being able to get them to their after school activities easily.

Another variable to consider when purchasing your new home is future plans for your area. What is going to be built beside you, behind you or across the street. Horror stories abound. Imagine just moving into your new home when construction starts on the lot across the street, which was previously zoned as unplanned, for a local convenience store with the associated traffic and kids hanging around. Always make sure you know what is being built around you and do not make any assumptions.

Tips for new home buying also include verifying that the builder has a quality reputation, will deliver your new home on schedule and meet the quality standards you are looking for. Talk to other owners to find out their experiences. As you review the plans for your new home confirm that the orientation of your home on the lot is acceptable. If you are looking for lots of sun in the afternoons for example you will want to have your backyard facing to the southwest.

Model homes are great for evaluating new homes and to imagine how your furniture will look in your new home. This is an excellent way to decide on extras. Take measurements and assess whether your furniture will fit in the areas you plan.

Financing is one of the largest headaches for many people. There are many types of deals that consumers are being offered some sound to be good to be true, however in the long run, it is your family and your life and you need to evaluate each financial deal to ensure it is reasonable and financially sound. A good rule of thumb is to avoid principle, interest and tax payments that take more than 35% of your salary. Most people can manage nicely if they stay under this number.

Lastly look at your home as an investment that you will be selling sometime in the future. Talk to your agent about resale values and were the market is headed. If you are selling another home to enable purchase of your new home, be careful about the timing to ensure that you are not left supporting two mortgages if your home does not sell or left homeless because your new home is not ready.