You may think this home purchase it is going to be your forever home but always keep in mind the possibility that you may need to sell it someday and sooner than you ever planned. Consider resale value? Is this neighborhood moving the right direction for increased value?
Market Trends: Research the real estate market trends in the area. Know if it is a sellers’ or buyers’ market. Is the neighborhood improving or declining? Your agent can help you with this by providing reports on the various neighborhoods and cities where you're considering buying.
Home Style Popularity: Some styles may retain value better than others over time.
New Construction or Resell Homes: There are advantages and disadvantages to each. New homes mean there will be less on-going maintenance in the beginning because everything is new. If, for example, you buy new in a neighborhood that is still building homes and you must sell because you're being transferred, buyers may be more inclined to buy one of the new homes instead of your 2-year old house. Consider this: resale homes may have established landscaping and lower cost per square foot to purchase. However, existing homes may have more immediate maintenance needs.
Move-in Ready or a Fixer: All types of loans will not work for a fixer upper house. Know whether you can handle the level or repairs and improvements or whether you will need to contract out the work. This could be out of pocket or you mad need a special type of loan to include the cost of repairs. Talk to your lender and agent to learn more. If you do a fixer, would you turn a profit if you sold it immediately? if not, you may be putting too much in the house to get a good return on your investment. Or perhaps you don't want the hassle of a fixer - look for move-in ready only then.
