| Finding the perfect home as a first time | | | | put into it if you were to move in next week. |
| homebuyer can be a long, drawn-out task if | | | | What needs to be fixed? How much do you |
| you're not organized and prepared to go through | | | | estimate the repairs would cost? This amount |
| all the steps involved with the search process. | | | | may or may not be factored into the asking |
| One of the most important steps in the home | | | | price, so it's important that you understand what |
| buying process involves the valuation of the | | | | type of investment you will need to make on top |
| home, or determining what the home is worth | | | | of the asking price in order to ensure your home |
| from your perspective. | | | | is exactly how you would like it to be. |
| Authors Eric Tyson and Raymond Brown of the | | | | The third step in determining the value of the |
| popular home buying book point out that the true | | | | home is to project what it may be worth in three |
| value of the home doesn't only consist of the | | | | years, ten years or twenty years. Is the home |
| price. Value means different things to different | | | | located in a brand new subdivision or an historic |
| people, so you need to identify the factors that | | | | part of town? What is the average appreciation |
| are most important to you when searching for | | | | value of the home year to year in that particular |
| your ideal home. Ultimately, the value of the | | | | neighborhood? The appreciation value may be a |
| home is what a particular home is worth to you, | | | | powerful 'pull factor' for a particular property, |
| and what types of benefits you will derive from | | | | especially if you are a first time homebuyer in a |
| this type of investment. | | | | buyer's market. |
| The first step in the valuation process involves | | | | There are several factors to consider when you |
| reviewing the actual dollar cost of the home, | | | | are looking at different properties and exploring |
| compared to other homes in the neighborhood. | | | | various neighborhoods as a first time homebuyer. |
| You need to review MLS listings and find out | | | | The true value of your home goes well beyond |
| what the seller paid for the home, if possible. | | | | the asking price because you need to take into |
| Even though the amount the seller paid for the | | | | consideration how much of the home needs to be |
| home may be much higher or lower than the | | | | repaired, what the biggest benefits of living in a |
| asking price, it helps to give you a baseline | | | | particular neighborhood are, and what the |
| amount to work with. Of course, you will need to | | | | property will be worth in a few years. Take the |
| factor in how long ago the seller purchased the | | | | time to learn about the price history and general |
| home, because any longer than two to three | | | | market appreciation (or deprecation) rates in your |
| years may not give you an accurate estimate at | | | | neighborhood so that you can make a |
| all. | | | | well-informed financial investment as a first time |
| The next step in determining the value of the | | | | homebuyer. |
| home is to consider how much work needs to be | | | | |