Cost vs. Condition When Buying a Home

Location Of The Property

Many considerations must be taken into account when determining where you should buy a home. Proximity to employment and the quality of the schools are common factors to determine if the location is suitable. Many communities now have websites you should review when selecting your future home location. Once you've narrowed your search to a few towns or communities, contact local Realtors to learn more about real estate in that area.

In addition to getting a feel for housing in the area, we recommend you spend some time in the town you are considering. Have a meal at a local restaurant, do some shopping, or visit the library to get a feel for the community. And make sure you visit the area during the day and at night, and weekdays as well as weekends.

Condition Of The Property

Condition is a significant factor to be calculated into your home purchase equation. All homes require constant care; care that will cost money. Most homebuyers take into consideration what the cost of paying the home's mortgage, taxes and utilities will be, but fail to factor in home repairs and maintenance. HouseMaster estimates that to adequately maintain a home in today's economy home owners need to spend between 1-3% of the cost of the home each year on maintenance. Many HouseMaster customers ask if it's better to buy a home in a good condition at a higher price or a home in need of repairs at a lower price. It depends! The answer depends on the homebuyer's skills and inclinations.

A home with many defects that is selling for a low price may be a great value for a homebuyer who is very handy and has the time and money to make the needed improvements. On the other hand, buying a home that requires a lot of repairs may be a big mistake. First-time homebuyers must consider the cost of repairs and whether or not they can afford to make them after paying their mortgage, particularly if the buyers do not consider themselves do-it-yourselfers. Maintaining your home and even improving it is a good way to protect your real estate investment.

Homes in good condition sell faster and at a higher price than homes requiring many upgrades and repairs. Another consideration to calculate is how long you plan on staying in the home. Many homebuyers are only planning on being in the home for a few years and don't have the time, money or talent to coordinate multiple repair projects. These buyers often find paying a premium for a home in good condition is a wise choice for them.

New Construction

Many homebuyers who are considering purchasing a newly built home wonder if a home inspection is necessary since the home is new. The answer is yes! Even though local municipality officials will perform code inspections, this does not guarantee the home will be constructed properly and free of defects. In addition, the cliché "they don't make them like they used to" holds very true for newly constructed homes. Many builders require home inspections on the homes they build because they understand the value of an objective check of the construction of the home is in everyone's best interest.