Overheated Housing Market for Potential Buyers Means Pay Even More Attention to Unexpected Considerations Before Buying

The process of buying a house is complex enough today without having to deal with an overheated real estate sector that is pricing first-time homebuyers out of the market. But it is not just the price that needs to be considered. There are other vital factors that could end up affecting the state of your home in the future. Here are some of the not-so-common considerations.

Potential Disasters

Who thinks of natural disasters when buying a house? Well, you should. Extreme weather events like floods and hurricanes have become increasingly common because of climate change. They are happening more, and they are more intense. Think about Hurricane Harvey’s inundation of Houston just a few years ago. Many people lost their homes because they never considered how vulnerable their purchases were to flooding. But even a heavy rainstorm can turn a house, seemingly in perfect condition, into an expensive problem with flooded basements costing tens of thousands of dollars in repairs and restoration. So it would be best to know the house you are about to buy isn’t located on a flood plain and is properly structured to drain water away from the foundation and walls in the event of extreme weather. That means a future homeowner should do the research to identify the geographic area where they are considering a purchase.

Environmental Footprint

Your home buying process needs to consider the state of the building envelope. This term refers to exterior portions of the home including construction materials such as stone, brick, wood, aluminum siding, roofs, foundation, windows, and doors. The right materials and choices for the building envelope have a direct impact on the home’s environmental footprint. Considering climate change, a poor building envelope will lead to extra costs for heating, cooling, and general maintenance. Your home’s environmental footprint is determined far more by the state of the building envelope than by updating the HVAC and appliances. That’s because the exterior plays a major role in how much energy the house will consume. 

Value Add

Most prospective homebuyers pay attention to pricing, both present and future. Often what most impacts future pricing is a favourable location. And as we stated above, what constitutes future value in the home you buy is an environment that is well situated to ensure the house increases in value should you wish to sell it at some point. Buying a home whose value grows can come in handy, especially if you are considering retiring while remaining in it. Reverse mortgages have become a popular means by which older homeowners can leverage the added value over the purchase price over time. Direct lenders like All Reverse Mortgage will provide you with funds based on a percentage of the home’s appraised value. It is essential, therefore, to consider the home’s future value before buying it.

Permanency or Transitional

When you buy a home consider whether it is a transitional purchase or a permanent one. If looking for a permanent home, invest more time and resources to find the perfect fit. Rushing into buying may result in long-term disappointment. On the other hand, if you are looking for a transitional home, you have room for flexibility and experimentation. You can settle for a home that will be the first step in a series of future purchases. That transitional home could be a fixer-upper that you plan to sell in five to ten years. Or in doing the fixes the home may go from transitional to permanent, particularly you make environmental sustainability improvements that make the house both livable and affordable.   

Your Purpose

Homebuyers buy for all kinds of reasons. In the previous paragraph, we talked about transitional versus permanent residence. But some home purchases are valued for rental income opportunities, while others can be flipped for profit. If the latter, you need to look at the cost of repairing and upgrading the home versus what the house might sell for once you have finished the job. Similarly, if you are buying a house for rental income, consider factors like location and market value. 

Timing

Short close versus long close. These terms may be unfamiliar to you as a first-time homebuyer. But timing is a critical consideration. How long will it take for you to get financing? How long does the seller need to meet his or her needs? If you already own a home and are selling it while looking for a new home, you have to consider the timing between the buying and the selling. Banks and finance companies offer bridge loans for buyers who get caught in the vice when the home they are selling represents a good percentage of the cash equity they are using for their next home purchase. The important issue is to secure the funding before you buy. 

Crime

Crime rates are a vital factor to consider before buying a home. You can check crime-rate data for neighbourhoods online. Many websites provide information on criminal activities by zip or postal code. Use that information in helping to determine whether the house you hope to move into will give you a degree of security and comfort. Before buying talk to the people living in the neighbourhood to get their takeIf possible, you should also talk to people living there to get feedback. And while you are doing it, ask about local amenities, past history of flooding, and any other environmental concerns. 

Finally

Buying a home will probably be the biggest purchasing decision in your lifetime. So enter into the transaction with eyes wide open. There is more to it than price and location as you now know from reading this article. So good home hunting.