With the recent news that the Fed is raising interest rates, and the improving general health of the economy, we have begun to see a rise in morgage rates. As such, economics dictates that the real estate market should become a bit more of a buyers market. Therefore, potential homebuyers may have more choices to make in the coming year when they look to buy.

When buying a home, you will first have to determine the price range of houses you will be considering for your purchase. Consider how much of a downpayment you will be making and how much of a monthly payment you can afford to determine your budget.

The next step in choosing a home lies in choosing the neighborhood you wish to live in. Narrow down your choices to 3 or 4 different neighborhoods using these criteria:

property values
quality of local schools
traffic
crime rate
commuting time (if applicable)
closeness of shops, cultural activities, parks, schools, and public transportation

Once you have zeroed in on a few neighborhoods, consider the type of home you will be purchasing. Most buyers search for single family homes, but there are other options, such as multifamily homes, condominiums, and co-ops which you may wish to consider.

After you have settled this issue, then you must determine the number of bedrooms your home will have. Of course, this will be determined by your personal needs, however you may want to consider that generally, houses with three or more bedrooms have greater potential for appreciation than two bedroom houses. Similarly two bedroom condos resell much easier than single bedroom condos. In addition, consider the costs of renovations or repairs you may wish to make.

Once you have found your dream house, be prepared to make an offer right away. This is especially important if the property is underpriced or newly listed. There is nothing more disappointing then having your dream house slip through your fingers.

Happy Househunting!

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