A lot of homebuyers don’t start out purchasing their forever home. They buy a starter home, which is a modest property intended just to get on the housing ladder. Starter homes are typically small, with just 1-2 bedrooms. Their square footage may be under 1,500 in many cases, and they may sometimes be outdated or in locations that aren’t considered particularly hot markets.
Those with higher budgets may purchase less modest homes as their starter homes. But a lot of first time homebuyers are aiming for houses that are $200,000 or less.
What should you look for in a starter home? Let’s go over some tips for choosing a starter home that will help you achieve your goals.
- In a location that makes sense for you for the next few years. It is common for people to stay in starter homes for around 3 to seven years. That is a pretty hefty chunk of your life, especially if you are buying your first home in mid-life. So, it may not need to be in your dream location. But it does still need to be in a spot you can tolerate for a while. Consider job opportunities and general quality of life when choosing where you will purchase your starter home.
- Fits your budget. One of the biggest requirements, of course, is that your starter home fit your budget. When you are looking at listing prices, add on an additional 10% or so. You have to remember that the price of the home does not include a lot of the other expenses you will need to pay. These can include insurance, homeowners association or condo fees, property taxes, and repair and maintenance expenses. Many people purchasing their first home underestimate how expensive it can be to own a home. So, give yourself some additional buffer even after you tack on another 10%. You are probably going to need it.
- Isn’t about to collapse. One of the challenges with finding a starter home is that a lot of houses that sell in the price range that you may be looking in could be in need of some work.
If possible, try to avoid houses that have issues with:- The foundation
- The roof
- The electrical wiring
- Plumbing
- HVAC
These can be very expensive to fix. You generally want your starter home to be relatively stress-free. You can make some improvements to it to add to its value. But if you will be in it only a few years, it doesn’t make a lot of sense to invest a ton of money, time and energy into major repairs if you can avoid it.
- Won’t be too hard for you to resell later. The idea behind a starter home is to sell it in a few years so you can move to a new location or upgrade to something better. So, when you buy the house, you should already be thinking about how you are going to sell it. Avoid buying a home you think will be difficult to resell for any reason, whether it’s defects, location, or anything else you can think of. The less time it spends on the market in the future, the easier it will be for you to buy your next home and move.
Buy Your First Home with Liberty Capital
Liberty Capital is based in Columbus, and can help you buy your first home or refinance quickly and easily anywhere in Ohio. To get started, please give us a call at (614) 505-0620 to schedule your consultation.
