Some people advise against buying starter homes for sale, but there are several reasons that doing so is a smart move. A starter home is an important stepping stone that many first-time buyers need. If you are unsure if you need to buy a starter home, here is what you need to know:
Why Buy a Starter Home?
Many people do not realize the process to buy a home is complicated until after they have made an offer. Unfortunately, the process can become so complicated that costly mistakes are made. If you are buying your forever home, you could be left to deal with those mistakes for the foreseeable future.
When you buy a starter home though, you have an opportunity to learn the home-buying process. If you make mistakes, they will not have as big an impact on you. You will be selling and moving into your forever home in the future. This allows you to make mistakes without them having the same long-term effect that they would with a forever home.
Living in a starter home also gives you a chance to experience what owning a home is like. As you work to maintain the home and its lawn, you can learn more about your own preferences. For instance, you might decide that maintaining a large lawn is not for you after taking care of your starter home's lawn.
Buying a starter home also gives you a chance to get all your finances in order before you apply for a bigger loan for your forever home. If you are consistent in your payments on the starter home, your credit score will likely increase, which puts you in a better position for more reasonable interest rates.
What Should You Look For?
Even though you will only be in the starter home for a few years, you need to approach buying the home as a serious transaction that could have a long-term impact on your life. For instance, you need to carefully research the area in which you are planning to buy. You also need to get pre-approved for a loan and determine how much of the loan amount you are willing to spend on the new home.
Just because the price of the starter home seems reasonable, you should still talk to your real estate agent about negotiating. Depending on the seller and the offers he or she has received, you might be able to get the home for a lower price.