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Buying a home in 2025?
Home prices are on the rise across the country, which means prospective homebuyers need to do their due diligence to find the best home values.
Here are five factors that real estate experts like, Patrick Carroll, agree affect home values when looking to buy a new home.
1. Location Affects Home Cost
The average home cost in the United States is more than $412,300 and varies greatly depending on the location. Urban centers generally cost much more than the average in more rural areas due to the higher property values in big cities where properties were bought and developed long ago. Many homebuyers in urban centers might be better off finding a home in a suburb and commuting a half hour or so to work to save money on mortgage costs.
2. Home Size Also Affects Cost
The size of a new home will make a difference in its cost. The more bedrooms and bathrooms it has, the higher the cost. A first-time homebuyer or a retiree might not need a larger home, but a change in family size could make a difference. Fortunately, it’s usually possible to add on to an existing home, which might be a better option than initially buying a large home.
3. Some Properties Enable More Activities
A home often comes with a property that might include a yard or maybe a pool on an appropriately sized lot. Local zoning laws determine if a property can have more structures added to suit homeowners’ needs. The ability to expand a home or add features to a property makes it a better property.
4. Local Services Can Make Homes More Valuable
Depending on where a home is located, it could have access to municipal utilities and services. Water, sewage, and garbage removal are common examples of local municipal utilities and services that can make a property more viable for your needs. Instead of drilling a well or tending to a septic tank, your municipal utilities and services might offer them at a reasonable cost. You also should check for local fire, police, and medical services to ensure they are easily accessible if needed.
5. Alternative Mortgages Could Make a Home More Affordable
Instead of focusing on a traditional mortgage, many homebuyers might qualify for a more affordable rate through alternative mortgage providers. For example, qualifying veterans could use a VA loan to buy a home. Others might opt for an FHA loan that has reasonable rates and requires a nominal down payment. Homebuyers also might consider a rural home loan through the U.S. Department of Agriculture, which provides loans at affordable rates and might not require a down payment.
Conclusion: Buying a Home in 2025
Purchasing a new home in today’s escalating market requires more than just a casual search—it demands a strategic approach grounded in thorough understanding and careful planning. By diligently considering the five key factors—location, home size, property potential, local services, and alternative mortgage options—you position yourself to find a home that not only fits your budget but also enhances your quality of life. Each of these elements plays a critical role in determining a home’s value and suitability for your needs.
Remember, location influences not just the price but your daily commute and access to amenities. Home size should reflect your current needs with a mindful eye on the future. Assessing how property features can accommodate additional activities adds value and enjoyment to your living experience. Ensuring the availability of local services like utilities and emergency services contributes to convenience and safety. Lastly, exploring alternative mortgage options can make homeownership more accessible and financially manageable.
By integrating these considerations into your home-buying journey, you become a well-informed buyer equipped to make decisions that lead to lasting satisfaction and sound investment. In a competitive real estate landscape, such diligence not only helps you secure the best possible value but also turns the process into a rewarding experience culminating in finding a place you can truly call home.
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