First time home buyers 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
In the book "Home Buying for Dummies", expert authors Eric Tyson and
Raymond Brown specified that 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
that 3 years has elapsed, an estimate based on the purchase price will
no longer be accurate.
The second thing a home buyer must find out is if there are any repairs
that need immediate attention and how much it will cost. The cost of
repairing the home may have been factored into the asking price. If it
was not, a home buyer needs to be aware of what they may have to spend
for when they buy that home for sale.
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.
There are several factors to consider when you are looking at different
properties and exploring various neighborhoods as a first time
homebuyer. The true value of your home goes well beyond the asking
price because you need to take into consideration how much of the home
needs to be repaired, what the biggest benefits of living in a
particular neighborhood are, and what the property will be worth in a
few years. Take the time to learn about the price history and general
market appreciation (or deprecation) rates in your neighborhood so that
you can make a well-informed financial investment as a first time
About the Author: Alexandria P. Anderson is an Minnetonka Real Estate
agent that helps people to find and purchase Minnetonka Homes
and properties in the Twin Cities of Minnesota.