Valuing a Property as a First Time Homebuyer

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First time homebuyers can make the task of finding the right home for sale a lot less complicated by having an awareness of the steps in the home buying process. Once you get to know these easy steps, you will be able to make the best new home purchase to suit your needs and budget. Valuation of the home or determining what the home is worth from your perspective is one of the most important steps in the home buying process.

The true value of the home does not only consist of the price. Since value depends on the individual, identifying the elements that you would want to have in your new home can make the search among the many homes for sale a lot easier. The true value of the home is based on what it is worth to you and the benefits that you will get from investing in that piece of real estate property.

When you begin the valuation process of any of the homes for sale, the first step that you can take is to review its actual dollar cost and compare it to the other homes for sale in the same neighborhood. This can be done by studying the MLS listings of the area and discovering how much the seller had paid for the home, if possible. Finding out how much was paid will give you a baseline amount to use in your assessment, whether or not it is lower or higher than the seller’s current asking price. Other factors that you have to take into consideration is when the seller had bought the home because if more than 3 years has elapsed, an estimate based on the purchase price will no longer be accurate.

The second step that a home buyer can take is to figure out how much repair work is needed and what the cost will be. Ask yourself a few questions like “If I move in next week, what has to be done to make it livable and lovable?” or “What needs to be fixed and how much will it cost?” Sometimes, the cost of repairs is factored into the asking price but if it is not, it is to your advantage to know what the add-on expenses you may be facing in the near future.

The third step in determining the value of the home is to project what it may be worth in three years, ten years or twenty years. Is the home located in a brand new subdivision or an historic part of town? What is the average appreciation value of the home year to year in that particular neighborhood? The appreciation value may be a powerful ‘pull factor’ for a particular property, especially if you are a first time homebuyer in a buyer’s market.

When deciding which among the many homes for sale to purchase, try to look at the different properties available in the various neighborhoods to see what best suits your needs and your budget. Finding out what the true value of the home that you are interested in goes far beyond the price of purchase. There is more to a buying a new home that just what simply meets the eye. Find out more about the current homes for sale in the different neighborhoods and what benefits you can get as a first time home buyer.