A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:
They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.
It’s important to pay attention to all the information you have available to you because it will help you avoid unpleasant surprises down the road.
Be sure to ask questions about the property before buying. Some questions you might want to ask the current owner and/or yourself include:
What kind of development plans are in the works for this neighborhood?
Is there a chance that a highway will be built in the home’s backyard five years from now?
Is this street likely to become a major street or a popular rush-hour shortcut?
All real estate agents work by an ethical rule that says they must act in the best interests of both the home seller and the home buyer. However, you cannot truly guarantee that your best interests are involved unless you have an agent on your side during the buying process. After all, the seller’s agent is there to represent the seller, not the buyer.
NEXT Mistake 10: Not thinking about the future.
Finding the perfect house may seem easy, but if you’re on a budget, you may not be able to afford that dream home. So, why not find a lower-quality home and, over the years, help it reach its true potential? Finding a house you can add value to allows you move up the property ladder.
Improving a lower-quality home brings many benefits. First, you most likely have the option to sell it for more than you spent on it. Secondly, you have saved money to live in a home that, once upgraded, is just as good as or better than the expensive homes. And finally, you have something to be proud of – you transformed a decent home into a wonderful home through your own work or work for which you were responsible.
NEXT Mistake 9: Not hiring your own agent.
Although you shouldn’t let cosmetic, surface imperfections steer you away from a home, you shouldn’t ignore large problems that could cost you big time down the road. Always be sure to inspect the home and understand what shape the house is in before closing on a sale.
Bob Murphy is a home inspector
Once you’ve fallen in love with a house, It can be easy to write off large problems as petty. However, try to keep your emotions and feelings in check during inspection. If you let your emotions get the best of you during inspection, you may regret it when a major problem occurs down the road and you may end up paying more while getting less.
NEXT Mistake 8: Being swept away.
Remember: it’s easier to make small changes through a contractor or by doing it yourself than it is to have the current home owner change things. If you find a home that’s perfect for you except for some ugly wallpaper or chipped paint, don’t automatically throw it out the window. It’s much cheaper to make changes yourself, whether that means hiring a contractor or actually making home repairs yourself.
If the current home owner does the upgrades for you, the home’s value increases and you will end up paying more in the long run. Therefore, don’t necessarily look for the most beautiful home, but rather seek the home that’s structurally sound and that has the most potential. Maintaining a visionary’s attitude when buying a home can save you a lot of money in the long run.
NEXT Mistake 7: Neglecting to inspect.
While it’s important to have an open mind while searching for a house, it’s also important to know what you absolutely need and what you could give up.
The Eclipse is a pet-friendly condominium community.
For instance, if you know you want to have a child in a couple years, avoid buying a one-room home. If having a child is something you value, make sure you have room in your new house for your family to grow. No matter what your values, determine what’s most important to figure out what you can and cannot compromise.
NEXT Mistake 6: Lacking vision.
While you should narrow down what you want and you list features most important to you, don’t be so inflexible that you make it impossible to find a home. If you’re too picky, you may have to continue renting when you could own a home. Be willing to compromise on some of the less important things that can be changed or ameliorated later, like outdated décor.
However, it’s vital to remember what’s most important to you. If you really can’t find something that has what you need and want, it may be best to rent for a few more years until something new comes along or until you’ve saved up more money to afford your perfect home.
NEXT Mistake 5: Compromising on the important things.
Even if you can afford the cost of a home, remember owning a house requires additional expenses a renter doesn’t have to pay. For example, homeowners have to pay for insurance against disasters, for home repairs and improvements and for property taxes. In addition, condominium owners are required to pay maintenance fees as part of the homeowner’s association. Be sure to make yourself away of the additional expenses of owning a home so you don’t find yourself in trouble after purchasing.
NEXT Mistake 4: Being too picky.
