If it is your first time to house hunt, perhaps you're wondering what's so special about buying a starter home. A starter home refers to a structure that's generally smaller and less expensive than your average house, which is a must to understand before you start your search. It is actually a prudent option, especially if it's your first one. Here are six more facts that you need to know about starter homes.
1What A Starter Home Is
A starter home refers to a type of house preferred by most people who are buying their first homes. Most starter homes are smaller than your average house. They're also cheaper and readily available, which means that new homeowners can quickly move into their homes after purchase. Some repairs may be required, though, in order to improve the condition of the property.
Starter homes are generally best for single families. They are excellent choices for those who have never had their own houses before. If you want to know how much such houses cost, check out the local paper. Phrases to look out for are "good starter home" or "requires some TLC." You could also do some online research or ask a reliable real estate agent for assistance.
2Added Benefits Of Buying A Starter Home
It is a prudent move to purchase a starter home because, after a few years, the property can be resold at a higher price, particularly since property values tend to increase over time. Most of the time, people go for starter homes if they are single or if they've just been recently married. Homeowners can earn from their starter homes because of the high resell value after a few years, which will then allow them to purchase a bigger and better home. Some, on the other hand, outgrow their starter homes quickly, especially once there are more children; and this could mean that reselling may not earn you as much or you'll probably even lose money if the property's value has remained the same over time.
3Standard Types Of Starter Homes
There was a report from the National Association of Realtors in 2003 which stated that first-time home buyers were less likely to purchase single-family houses compared with those who already bought houses before. Those who were buying homes for the first time tend to prefer condos, townhouses, or row houses, which generally cost less. Don't expect too much from starter homes as such structures are not usually fancy, and they are best for those who are willing to do some renovations or repairs first to make their new place more livable.
4Typical Price Of Starter Homes
Prices for starter homes range from $40,000 to $120,000, but variations depend on the location of the property. Recently, starter home prices have increased. They are now more expensive especially if they are in or close to cities or other densely populated regions. To illustrate, you'll likely have a hard time finding an inexpensive starter home in big cities, such as Florida. However, if you intend to move to a small town, say, North Carolina, you may find a more affordable one.
5House-Hunting For Starter Homes
There are a few issues that you need to carefully think about when house-hunting. The most vital aspect to consider is the overall quality of the house that you're interested in. Are you satisfied with it? In its current condition, can you move in right away after purchase? If not, are you willing to shoulder the cost of repairs or upgrades, and are you going to require the help of a builder? Carefully evaluate both choices so that you can check if your current financial capacity allows either option.
Also, don't forget to look at the neighborhood: is it safe and peaceful? Can you comfortably live in the house with your family, and are there good schools nearby? When evaluating a house, always try to see if you can live in it for about three to five years. This gives the property enough time to increase in value so that you can earn some money from your initial investment once you do decide to resell. Finally, in case some issues make a particular house unattractive to you, think carefully if you can afford another one that's better. Depending on your current financial status, perhaps there are a few things that you can do without for the time being.
6What To Look For In A Starter Home
Often, location is more important than the quality or condition of a house. Structures can be improved, but it's next to impossible to move your house to a different place. Also, don't just look at the house, but examine the overall vibe of the area. Are there good schools, peaceful neighborhoods, decent businesses, and modern infrastructure nearby?
In case you prefer a quiet house, it won't be ideal to buy one near railroad tracks or an expressway. Assess the length of time it takes for you to commute to work too. Look at the crime rate as well. If you're moving with your family, are there also families in the neighborhood? Take some time to consider all these factors so that you'll be able to make a better decision.