Read Nolo's Essential Guide to Buying Your First Home Online

Authors: Ilona Bray,Alayna Schroeder,Marcia Stewart

Tags: #Law, #Business & Economics, #House buying, #Property, #Real Estate

Nolo's Essential Guide to Buying Your First Home (8 page)

BOOK: Nolo's Essential Guide to Buying Your First Home
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This isn’t a complete list, and you should think about features that are unique to your needs. For example, adviser Bert Sperling notes, “If you’re lucky enough to be a stay-at-home parent, you may find yourself lonely during the day if you have to travel a considerable distance to find some community for you and your youngsters.”
Neighborhood Features That Boost Resale Value
 
When it comes to the long-term value of your home, location really
does
matter. If you have a desirable piece of property that’s also in a desirable location, more people will want to buy it. That keeps its value relatively high compared to nearby homes in less sought-after locations (which people may buy partly because they can’t afford anything else).
They Call That a House?
 
You won’t believe what people live in! Here are a few creative houses:
• The Golden Pyramid House in Wadsworth, Illinois: The largest 24-karat gold-plated object ever created.
• The Shoe House in Hellam, Pennsylvania: Just what it sounds like—in the shape of a work boot, made of light-colored stucco and featuring shoe-themed stained-glass windows in every room.
• A live-in water tower in Sunset Beach, California: from the 1940s, converted to a three-story house.
 
Not surprisingly, many of the features that attract first-time homebuyers boost resale value, like high-quality schools, low crime rates, convenient amenities, and neighborhood character and community. Another major factor affecting resale value is conformity. Buying a house that’s much bigger than the houses around it is usually a bad idea. That house will appreciate at a slower rate, because buyers drawn to a neighborhood of smaller homes won’t be able to afford the larger home, and buyers drawn to larger homes won’t be drawn to that neighborhood. And if a house is just too unique—because the owner has customized it too much—it’s going to stick out like a sore thumb.
Finally, try to get an idea of whether a neighborhood is up and coming. You can tell by looking at whether there seems to be a lot of remodeling, new landscaping, or trendy-looking shops. Bert Sperling adds, “If you read the signs correctly, you could get in on the ground floor of the next hot new neighborhood.”
 
Know Yourself: How Your Lifestyle, Plans, and Values Affect Your House Priorities
 
Later in this chapter, we’ll show you how to prepare a Dream List to help you find the right house. Before making your list, reflect on what you want the house for. (To live in, duh, we got that.) Although it may be hard to imagine where your life will be in a few years, do your best to consider:

Who is going to live in the home?
You may be on your own now, but in the future, might you bring in a roommate, significant other, child, elderly parent, or pet? If so, factor this into your priorities for things like number of bedrooms, quality of the school district, or availability of outdoor space.

What do you plan to do in the home?
If you plan to work at home, spend a lot of time in the kitchen, or entertain frequently, plan adequate space for that. Conversely, consider whether you really need to spend extra for a huge gourmet kitchen if you eat takeout every night.

What does your lifestyle require?
If you travel for business, you might want the convenience of a condo with easy airport access. Or if you’re into nightlife, you might want to be able to stroll home and crash at 2 a.m.

How do you like to spend your time at home?
Do you love the idea of remodeling an old home or creating a beautiful garden? Are you scared to death of anything that hints at the word “handy”? If you’d rather be throwing a cocktail party than mowing the lawn, the big house in the suburbs may not really be right for you.
 
 
Look for a house with scope for my artistic side.
A graphic designer and yoga teacher, Diane had wanted to buy a house for years—but knew it would be a financial challenge. She says, “I scraped together enough to buy a small cottage, with a disastrous backyard—and I turned it into my art project. I painted those white walls celery green, brick red, and tan. I spent all winter pulling weeds, then put in flagstone and flowers. And eventually I sold it for a large profit—enough to buy a duplex, so now I’m a property investor!”
“Where
Could
I Be in Five Years?”
 
Instead of planning where you think you’ll be in five years, why not play “Where
could
I be in five years?” Try it with a friend or partner over a glass of wine, or while walking in the park. You’ll have to be a little realistic—do you
really
think you’ll win the lottery?—but optimistic, too. You may see yourself finding a better job in another city, or having your first baby. Imagining the possibilities can help you not only define your housebuying objectives, but see how those goals fit into your life’s priorities.
 
Know Your Ideal House: Old Bungalows, New Condos, and More
 
You probably have a vision in your mind of the house you want, whether it’s a cozy cottage with fruit trees; an elegant brick townhouse with no yard; or a modern, glass-enclosed loft with views of the city. For an overview of your options, read on. (And when you’re reading the bios of our advisers in this book, take a peek at their fantasy houses!)
Of course, where you live will play a huge role in what you can buy. For example, in Chicago or New York City, you may be looking at apartments in high-rise buildings, while in less urban areas, most of the homes may be single-story ranch houses or newly built homes within developments.
Isn’t my house classic? The columns date all the way back to 1972.
Cher,
Clueless
 
Would You Like Land With That? Single-Family Houses
 
You wouldn’t think we’d have to define “house,” would you? But since a number of different house types are available, let’s be clear about what each one is. Technically speaking, a “house” is a detached, single-family dwelling. When you own a house, you own both the structure and the property that it sits on, all by yourself. Your house won’t be attached to the next one, and you won’t be cursing an upstairs neighbor for stumbling across the floor at 3 a.m.
Even if you know you want a house, however, an important question remains—new or previously lived in? Each has its own benefits and headaches.
 
CHECK IT OUT
 
Interested in house styles?
To decide whether you prefer a “Colonial,” a “Victorian,” or an “Italian Renaissance,” look online at sites such as:

www.architecture.about.com
(search for “house styles”)

www.oldhouses.com
(click “Old House Style Guide”)

www.wikipedia.org
(search for “List of house styles”).
 
 
Old (or Not-So-New) Houses: Benefits and Drawbacks
 
If you’re in an uber-urban area or your price range dictates it, older houses may be all that are available to you. Or you may just prefer a touch of historical charm. Either way, you’ll get all these benefits:

Affordability.
Older homes tend to cost less to purchase than new, customized homes. (Though this isn’t a universal rule—in large cities, where the majority of new building is far outside the city, it can be the reverse.)

Established neighborhood.
Instead of looking at mounds of dirt while perusing architectural drawings, you’ll be able to get a feel for the neighborhood by taking a stroll.

Established landscaping.
You’re not likely to find a tree-lined street, or a wisteria arbor over your front gate, in a new development.

Construction.
Older homes are often built with high-quality materials such as thick beams, solid-wood doors, and heavy fixtures.

Character.
Crown molding and built-in cabinetry are just a few of the fun features found in older homes—but rarely in newer homes.
 
There are also drawbacks to previously loved homes, including:

Lower resale value.
Older homes, on average, sell for less than their newer counterparts.

Replacement costs.
The years take a toll on appliances, water heaters, and roofs—and replacing them isn’t cheap.

Efficiency.
Older houses tend to be less energy efficient than newer ones.

Style.
Although you can probably switch out the former owner’s unique style choices (like magenta bathroom tile), it may require a fair amount of sweat equity (meaning
your
sweat builds equity).

Layout.
Older houses were built for another era … an era before plasma screen TVs and home offices. Rooms may be smaller and laid out differently than you’d like.
 
Of course, not every used home is
old
. If you buy one that was built only a few years ago, some of the drawbacks described above will be eliminated. Likewise, you’ll lose some of the benefits.
Newly Built Houses: Benefits and Drawbacks
 
Nearly 1.6 million new homes are built in the United States each year, often in planned communities or developments. (Of course, you can always buy a piece of land and build a custom home—but that’s a different book, with its own unique set of issues.) No surprise—buying a new home has unique benefits, including:

It’s mine! It’s new!
A new house is a blank slate, clean and virtually untouched.

It’s custom-built.
Although most builders offer a limited choice of floor plans, you usually get to define details like paint colors, flooring, and fixtures (though good taste comes at a price).

All the modern conveniences.
New houses are built for today’s lifestyles, so you’ll be able to find features like a three-car garage, great room, or high-speed data lines. Also, you shouldn’t have to worry about replacing a water heater or roof anytime soon.

Livin’ green.
New houses are generally more energy efficient than older homes, so per square foot, you’ll probably spend less money on things like heating and cooling costs. And with some searching, you might find a “green builder” who uses environmentally friendly building techniques and materials (see the U.S. Green Building Council’s website at
www.usgbc.org
).

Community planning.
Many new homes are built in Planned Unit Developments (PUDs). Like condominiums, PUDs often have rules and amenities like swimming pools and community centers. If you like the conformity and resources you often get from a community association, but want the privacy of a detached home, a new home in a PUD might be a perfect compromise.
 
BOOK: Nolo's Essential Guide to Buying Your First Home
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