Home Buying Advice For First Time Home Owners

Most first-time homebuyers find it both practical and interesting to have a 'new' house for a number of benefits: a new space to raise your family, brand new amenities and home features, and the fact that you need not to worry about costs on maintenance or renovation in the first year.

However, a brand new home can be significantly more expensive than an existing home and you don't always know what to expect if you're one of the few homes in a growing neighborhood.

Comparing the strengths and limitations of each scenario helps in coming up with the best decision for your home buying; the following are questions you must keep in mind when you begin finding your new home.

1. Are you willing to spend extra for a new home's purchase? Because of its newness, all brand new homes are priced at a premium; this means that you will be the one to get a taste of everything it offers, from the moment you entered your new property.

2. Does resale value matter to you? A brand new home typically appreciates faster than existing homes, explains author Ilyce Glink of the book '100 Questions Every First-Time Home Buyer Should Ask'. If you are planning on selling your home in the very near future, a brand new home may have a higher market value shortly after you move in, making it easier to sell the home for a profit.

3. Can you easily adapt to a new neighborhood? Many new home constructions move at a very fast rate and as one of the first homeowners in the area - knowing what the neighborhood is like wont happen unless you get to meet more people in your new environment. If you have family consisting of smaller children or elderly living with you, it can be great to factor in safety and security by finding out your options as far as making your property safe.

4. Are you willing to invest your resources for home renovation ? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. You may opt for a 'fixer upper' if your plan is to have a long-term investment to give you a high profit at a short time.

5. Do you want an investment or a primary residence? Most beginning homebuyers want investment properties that they can soon turn into a profitable business. However, older and mature homebuyers prefer primary residence mainly for purposes of settling down or establishing themselves in the neighborhood. Still, the best thing to do is to weigh your short term and long term goals if you want to make the most out of your home.

Once you have decided and thought about the amount you are willing to spend for your new home, its about time to choose between an existing or a new home. These questions may all be helpful as you pick the best option suited to your budget and future plan.

Author: Alexandria P. Anderson specializes helping people to find and purchase Minnetonka Homes for Sale, as well as Minnetonka Minnesota Real Estate for her home-buying clients.