Buying your first home is exciting, but there are many things that go into the decision, including price, square footage, location, and available amenities.
As of the fourth quarter of 2023, the average sales price of a home in the United States was $492,300, according to the St. Louis Fed. This doesn't necessarily reflect the cost of starter homes, but even these properties are more expensive than ever.
Read more: 7 ways people destroy the value of your home, according to a real estate agent
Find out: How to get $340 in cash back a year on gas and things you already buy.
Melissa Zimbelman, a real estate agent with Fresh Starts Registry, said, “With home prices soaring right now, most first-time home buyers are looking to buy their first home with all the money they have in the world. “I'm hitting it,” he says. “That includes borrowing money, emptying all your savings accounts, your 401(k), grandma's birthday stash, and even the coins in your couch cushions if you want.” That said, there is little money left to update, renovate and furnish the first home.”
The barriers to homeownership are so high these days that many first-time homebuyers cannot afford to buy a home that doesn't meet their needs or that requires significant additional funds to maintain. That's why it's important to choose a starter home that has everything you need and requires minimal maintenance.
But what are the key features a starter home should have before deciding it's worth buying? According to real estate agents Zimbelman and Jared Blumberg.
sponsor: Protect your wealth with a Gold IRA. Take advantage of the timeless appeal of gold with Sean Hannity's Gold IRA.
Fully functional HVAC system
Before you hand over any money or sign any documents, your starter home should have a fully functional air conditioning and heating system.
“The cost of repairing/replacing your HVAC system is one of the most expensive expenses in your home, so making sure your air conditioning system is working properly is your first priority,” Zimbelman says. say. “Most homeowners will eventually have to make repairs.” [or] Replace your old system within the first three to five years of homeownership, unless it has already been replaced. However, it is essential to know that it works well from the beginning. ”
Read more: In 10 years, you won't be able to buy a home in these postcodes
Electricity and plumbing work properly
Similarly, new homes, regardless of age, should have fully functional electrical and plumbing systems. These systems are expensive to repair or replace. Updating any of the systems in your home can cost thousands of dollars or more.
“Having these items checked during a home inspection and having the seller address any issues found is important when money is tight,” Zimbelman says.
new roof
Even if your roof isn't new, you won't need repairs right after you buy your home. The cost of installing a new roof will vary depending on your area's labor costs, the square footage of your home, and the materials used. According to Bob Vila, the cost of a new roof replacement ranges from about $5,727 to $12,418 for him.
“It's important to make sure the roof is in good working order because it can be another big expense,” Zimbelman says.
enough space or room
“A starter home should fit the buyer's immediate needs and potential future needs. Although there is no way to know exactly what your future needs will be, most people know that they will They’re thinking about what they want for themselves and their families,” said Jared Blumberg, founder of Compass’ Werner Blumberg Group. .
So what would this look like? It all starts with making sure your home has enough space and room for your family now and in the future.
“I need this home to meet my essential 'needs' to support my family for the next five to 10 years,” Blumberg said. “You may need some sleeping space, a play area, an office, a laundry room, a full bathroom, or just enough space for a kitchen table. You may need storage space, such as an attic, basement, or garage. there is.”
suitable exterior doors and windows
Before you buy a home, get an inspection, walk around the property and check the doors and windows to make sure there aren't any glaring problems.
“It may seem obvious, but many homes, even new homes, have problems with windows and doors,” Zimbelman says. “When old windows don't open, don't stay open even when raised, or don't seal completely when doors and windows are closed, homeowners can spend money in lost heating, air conditioning, and cleaning costs. It occurs after water or pest intrusion.
safe area
It's not just the functionality of your home that's most important. It is also important to choose a home in a safe location.
“This is actually the most important thing in buying a home,” Zimbelman says. “Everything else can change over time, but it’s essential to have a safe place where homeowners feel safe and future buyers will feel the same way.”
Other useful starter home features
While you don't necessarily need the following features in your starter home, they can definitely add value to your home and give you and your family peace of mind.
working appliances
“Appliances are expensive, so if a seller is willing to provide a working appliance, meaning the buyer doesn't have to provide one themselves right away, that's a bonus,” Zimbelman said.
New appliances can cost anywhere from $500 to several thousand dollars each. So before you buy a property, check to see if you can get things like a refrigerator, oven, washer and dryer, etc. It may take a little negotiation, but it's worth a try.
new flooring and paint
Depending on the age, condition, and price of your starter home, you may not be able to get new flooring or paint. But if possible, it's a solid upfront bonus.
“Again, buyers aren't too fussy about cosmetics if they're just getting into the home, but finding new flooring and paint is really nice,” Zimbelman says. said.
home warranty
“Having the safety net of a home warranty during the first year of homeownership is a good idea,” Zimbelman says. “Sellers often agree to provide a home warranty as part of the contract if asked.”
However, it depends on what part of the country your home is located in. Home warranties aren't common everywhere, so it might not be something you particularly need. Still, it doesn't hurt to check to see if it's available. Make sure everything you need is covered before you agree to anything.
Focus on personal aspirations and needs
Ultimately, it's important to choose a starter home that fits your budget and your current and future needs. However, everyone is different, so take a hard look at your goals and situation and create a list of must-have features from there.
“Everyone has a list of things they need and want in their home,” Blumberg said. “The key is to figure out which are your 'needs' and which are your 'wants' and focus on getting as much of each as possible. Keep in mind that it's impossible to get everything, no matter your budget. If you don't think about and resolve this issue carefully, you could find yourself in a situation where you have to sell and move sooner than you expected. ”
GOBankingRates Details
This article originally appeared on GOBankingRates.com: I'm a Realtor: Don't Buy a Starter Home If It Doesn't Have These 6 Features
