The best deals on homes these days are often on properties that aren’t perfect. But that doesn't mean that home shoppers looking for a great deal can't find a place with potential.
Location, location, location. You can always fix a property, but you can't always fix the neighborhood. In the long run, home buyers often get a better deal with the worst house in a great neighborhood than with a fancy house in a not-so terrific neighborhood.
Less than 50 years old. Properties older than a half decade are likely to have more fundamental problems — like aging wiring, inadequate plumbing and sagging foundations. In and around Old Town and historic areas, that's not always possible, so shoppers also look for homes that have been completely renovated as opposed to homes with a facelift and fresh coat of paint.
Livable floor plan. It's a good idea to buy a home with a basic design that makes you happy from the start. This is because moving walls can cost a lot of money.
Light. Houses with the most potential have plenty of natural light. Southern facing homes often have the best light.
Good storage. Adding storage isn’t cheap, so it’s smart to choose a property that already has it.
There are five basic ground rules when it comes to buying a home in {Location_Name} and shopping smart, and they are:
#1 – Get your financing before scrutinizing what's available for property in {Location_Name}
There are few things in life as disappointing as losing out on the home of your dreams due to not being able to secure funding. While the desire to get out there and search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.
Getting the financing ahead of time has a number of important advantages, including knowing how much you can buy and gain more respect from the listing agents. By knowing how much home you can afford before you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more than willing to show you the homes in your price range.
It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process. These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which mortgage is the best choice for their needs.
#2 – Look at the community in {Location_Name}, not just the home
It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with the local climate and lifestyle. It is crucial to determine the areas of town that are most desirable, and to consider things like distance from work and local shopping opportunities.
We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town, as well as by talking to other residents.
#3 – Be fair with your first offer
Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully evaluate the local market, and to compare the asking price of the home with what similar houses in the neighborhood have sold for.
Comparing the sales of comparable homes, what are known as "comps" in the industry, is one of the best ways to determine what is fair, and to make sure that you neither overpay or underbid on the property.
#4 – Always get a home inspection
Always investigate the home for any possible defects before making an offer. Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.
To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home inspectors rely on word of mouth advertising.
#5 – Do not alienate the sellers of the home
Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller. It is important to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the sale.
Keeping the goodwill of the seller will help the transaction go smoothly, and it will provide the best environment for seller and buyer alike.
[learn more about the home buying process]
Old growth neighborhood
The economic theory of "Progression and Regression" states that building a home that is valued substantially above other properties in the same neighborhood will most likely cause the newly built home to value downward toward the other properties. This is sometimes called "overbuilding" because sometimes a homeowner will put additions or improvements on his home that are substantially better than his neighbors.
But the theory is called progression and regression because a home that is in a diminished condition in a better neighborhood will command a higher value. Additionally it is possible for a neighborhood to reach a tipping point. In other words, if enough of your neighbors "overbuild" your house could increase in value due to the increase in value of the neighborhood.
In Northern Virginia, we see this in many neighborhoods in and close to Alexandria and Arlington. For example, in Del Ray, older working-class homes have been replaced by or improved to become pricier and much more luxurious. Lyon Park and the area surrounding Belle Haven is not the same neighborhood that I remember as a child. Both of these areas have become much more exclusive.
Are you looking for new construction in Northern VA?
But that doesn't mean that home shoppers looking for a great deal can't find a place with potential.
