What to Consider When Buying a New House

Ah, the age-old real estate question of What to Consider When Buying a New House. In all my years running a homebuying business in Philadelphia, this is by far the most common question potential homebuyers ask. And I have always maintained that homebuying is a delicate art. The process itself has so many factors that sometimes it can be hard to know which from which. But, friends, there is no need for you to worry. We got you! We will discuss the essentials associated with buying a new house, and by the end of this read, you should feel more confident about your decision

What to Look for in a New Home?

We at Brotherly Love Real Estate realized long ago that prospective homebuyers narrow their search by price. So, they end up looking for homes that they can afford. As the process builds, they get a sense of the market and what they can find. As a result, Jon and I came up with a “Preset Preferences” that covered what homebuyers wanted in a new house.

– Safety
– Walkable
– Preferred neighborhood
– Family-oriented
– Optimal commute
– Proximity to services
– Preferred school district
– Within the initial budget

This preset works for all homebuyers. 9 out of 10 real estate professionals recommend using this preset!

What Are Some Essentials When Buying a New House?

Folks, this is the juicy part. And by juicy, I mean the educational part. I’ll talk about things like finances, location, resale potential, etc. And to make things easier, I’ll cover each one in detail, so you understand how it works.

Search for the Right Price

This is a serious one. You MUST tap into the market with a set price plus a buffer of a few thousand dollars. Once you have a set budget, it is followed by the Preset Preferences. Mind you, you will not get 100% of all the preferences. So, remember to be flexible. The question of setting a homebuying budget has the following answer:

– Get pre-approved for a mortgage.
– Review your savings for the down payment. The down payment is generally 20% of the asking price.
– Understand the monthly mortgage.
– Consider additional costs like insurance, property taxes, and maintenance.

A clear financial picture lessens the monetary burden and can save you from massive stress. When Jon purchased his current home in Philly, he and his wife spent around 2 months gathering their finances. It was meticulous, tiring, and sometimes stressful. But it had to be done. And those two months of staring into spreadsheets got them the family home they wanted.

The Right Location

Any property’s location has the potential to make or break its future value. Cities like New York continue to rise as the most expensive places to buy a home, but do they guarantee long-term value? Not really! If an area is crime-laden or has fallen off the government’s attention radar, property prices will stagnate. You should consider proximity to work, quality of the local schools, safety, and other amenities.

As before, Pennsylvania continues to carry forward its legacy of being an affordable place for homebuyers. On average, homebuyers can purchase a house in Philadelphia for around $250,000, whereas in New York City, it often exceeds $900,000.

Size and Layout

This is more of a long-term factor. Here are some questions we asked one of our clients who wanted to buy a new house in Philly.

– How many bedrooms would you need in 5 years?
– Are the number of bathrooms enough?
– Do you plan to start a family?
– Do you require flexible spaces, such as a study or guest bedroom?

When considering a financial expense of this extent, you should think long-term. Buying a house is hard enough. Don’t make it harder by having to do it again in three years.

Resale Potential

While you may not be thinking about selling before you have even bought the house, the resale value is a crucial factor. In 15 years, the house may be too big for you, or you may decide to move to a different city. The fact is that if you have a major life change, the house may need to go. And now, you need to get more than what you originally paid for the house. So, that’s something to think about.

The Age of the House

Be mindful of the condition and age of the property when purchasing a new house. Older homes may have more character, but they demand a ton of maintenance and upkeep. Are you up for that? Newer homes might have fewer immediate needs, but they lack character. Is that a deal breaker for you? It does come down to choices and wants, but logic should prevail.

Energy Efficiency and Sustainability

For almost a decade, sustainability has been a primary factor to consider when investing in a new house. Sunroofs, rainwater harvesting, and natural cooling are things that no real estate professional has even thought about when selling a house. But this is a thing of the past. Today’s buyer desires an energy-efficient home to play their part in maintaining the climate, balance their utility costs, and not toy with nature. Sustainable homes are a huge selling point.

Back when Jon was searching for a new house, he was insistent on houses built with heat-retaining materials, as Philly has strong winters. He said that it would help reduce his heating costs, and trust me, you will feel like a warm burrito in Jon’s home during the winter months. And that’s partly because the house retains the heat.

Home Inspection and Appraisal

Before finalizing any home, get a home inspection done. A home inspector could uncover potential issues that may cost you down the line. Additionally, an appraisal will ensure that you are paying a fair price based on the current market value of the home.

Final Steps

After you have traversed your way through the initial steps, your next task is finalizing the purchase.

– Negotiate the deal.
– Go to escrow.
– Finish the deal.
– Invest in home insurance.
– Move in.

Testimonials

We knew we wanted to seek Jon’s assistance with homebuying ever since he moved into the neighborhood. He and Alex offered insight into the homebuying process that made it much simpler and easier for us. We were unable to decide on a location and kept on going in circles, but the Preset Preferences helped us narrow down our choice, and we were able to buy a newer and bigger home.

– Jon’s Neighbors

My husband and I reached out to Brotherly Love Real Estate to guide us as we wanted to downsize. Our kids moved out, and maintaining the big home in Philly was just too much work. They bought our house and coordinated the purchase of our new house with the sellers they recommended. It all fit like a concise puzzle.

– Retired Couple

Conclusion

This was a consolidated version of the hundreds of factors to consider when buying a new house. We buy houses all the time, so we know how overwhelming it can get. But that’s why planning and learning are two ways you can manage the homebuying process.