First time home buyers can make the task of finding the right home for sale a lot less complicated by having an awareness of the steps in the home buying process. Once you get to know these easy steps, you will be able to make the best new home purchase to suit your needs and budget. Valuation of the home or determining what the home is worth from your perspective is one of the most important steps in the home buying process.
In the book, "Home Buying for Dummies", authors Eric Tyson and Raymond Brown specified that the true value of the home does not only consist of the price. Since value means different things to different people, there is a need for the individual home buyer to be able to identify what are the most important elements that they would like their new home to have. What the true value of your new home is based on what it is worth to you and the benefits that you will get from making the investment.
The first step that a home buyer can take is to review the actual dollar cost of the home and compare it to the other homes in the same neighborhood. This can be done by taking a look at the MLS listings of the specific area. Finding out what the original purchase price of the home for sale can also help, but if the purchase was not within the last 3 years, you cannot make an accurate assessment and use the original purchase price a basis for review. To use the original purchase price to aid in your assessment, see if the property has devalued or if its value has increased withing the time peroid since the seller bought it.
The next step in determining the value of the home is to consider how much work needs to be put into it if you were to move in next week. What needs to be fixed? How much do you estimate the repairs would cost? This amount may or may not be factored into the asking price, so it's important that you understand what type of investment you will need to make on top of the asking price in order to ensure your home is exactly how you would like it to be.
The third step in determining the value of the home is to project what it may be worth in three years, ten years or twenty years. Is the home located in a brand new subdivision or an historic part of town? What is the average appreciation value of the home year to year in that particular neighborhood? The appreciation value may be a powerful 'pull factor' for a particular property, especially if you are a first time homebuyer in a buyer's market.
When searching for your ideal home, make a studied assessment of the different homes for sale in the various neighborhoods. The true value of your new home is not just what the actual asking price is because of the things that have to be taken into consideration, like repairs, price history, the benefits you will get from living in the area, and what the property will be worth in the future. Find out more about the new homes for sale and what neighborhoods have good appreciation rates so you can make the most out of your investment.
Author: Alexandria P. Anderson specializes helping people to find and purchase Edina real estate, as well as Edina homes for sale for her Minnesota real estate clients.
In the book, "Home Buying for Dummies", authors Eric Tyson and Raymond Brown specified that the true value of the home does not only consist of the price. Since value means different things to different people, there is a need for the individual home buyer to be able to identify what are the most important elements that they would like their new home to have. What the true value of your new home is based on what it is worth to you and the benefits that you will get from making the investment.
The first step that a home buyer can take is to review the actual dollar cost of the home and compare it to the other homes in the same neighborhood. This can be done by taking a look at the MLS listings of the specific area. Finding out what the original purchase price of the home for sale can also help, but if the purchase was not within the last 3 years, you cannot make an accurate assessment and use the original purchase price a basis for review. To use the original purchase price to aid in your assessment, see if the property has devalued or if its value has increased withing the time peroid since the seller bought it.
The next step in determining the value of the home is to consider how much work needs to be put into it if you were to move in next week. What needs to be fixed? How much do you estimate the repairs would cost? This amount may or may not be factored into the asking price, so it's important that you understand what type of investment you will need to make on top of the asking price in order to ensure your home is exactly how you would like it to be.
The third step in determining the value of the home is to project what it may be worth in three years, ten years or twenty years. Is the home located in a brand new subdivision or an historic part of town? What is the average appreciation value of the home year to year in that particular neighborhood? The appreciation value may be a powerful 'pull factor' for a particular property, especially if you are a first time homebuyer in a buyer's market.
When searching for your ideal home, make a studied assessment of the different homes for sale in the various neighborhoods. The true value of your new home is not just what the actual asking price is because of the things that have to be taken into consideration, like repairs, price history, the benefits you will get from living in the area, and what the property will be worth in the future. Find out more about the new homes for sale and what neighborhoods have good appreciation rates so you can make the most out of your investment.
Author: Alexandria P. Anderson specializes helping people to find and purchase Edina real estate, as well as Edina homes for sale for her Minnesota real estate clients.
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