Ok, so you only have so much money to spend on a new home. You are realistic about what you can buy with that money and after looking at quite a few places, you know that you are not going to be able to get everything you want. The question now becomes: ‘What things do you sacrifice and what characteristics are critical for a good investment?’
Here’s a quick checklist of how you should evaluate buying a home on a limited budget. I have broken it up into two categories, “Must have’s” and “Not Necessary.”
First, if you stick with these “Must Have’s,” you’ll never go wrong and your house will not only be an enjoyable place to live, but a good investment should you decide to sell it.
1) Location, Location, Location: The critical things to look for are: Is it in a desirable neighborhood where people want to live? Are homes always in demand in this neighborhood? Is it in a good school district? Is it at the end of the cul-de-sac or a non busy street? Does it have a view: back to the mountains or a greenbelt? And how are the other homes in the neighborhood?
2) Size: You should always be looking to buy the biggest home for your money. There is no such thing as too many bathrooms and bedrooms, but it is a problem when there are not enough.
3) Land: Yard size is still a big deal. At least it is in Denver, Colorado. Everyone wants more yards and it’s hard to come by so get the biggest lot you can. If you bought a home that sits on a 3200 sq ft lot, you may have a tough time reselling that home.
There are a variety of things that you can live without and shouldn’t be a top priority if you are buying a home on budget. Next week, we’ll take a look at the checklist of items that you might consider sacrificing before buying a new home.