Buying a Home in 2022
Updated: Jan 19
5 Key Things to Consider When Buying a Home in 2022
Are you dreaming of a home that gives you everything you ever wanted? Whether you are purchasing or building your dream home, there are a dew things to consider while navigating the real estate industry in 2022.
The best part about new construction is that we can give you everything you want on your wish list.
Investing in a home is one the biggest decisions you will make and I am here to help give you peace of mind as you consider all aspects.
Building vs. Buying
You're ready to move into your dream home and you're debating the pros and cons of building vs. buying. Let's take a closer look at both and remember, there is no right or wrong answer, only an answer that best suites you.
Pros of Buying
Move in quicker: Less time spent waiting for the completion of construction
Usually cheaper: A home loan usually requires a smaller down payment as compared to a land loan
Mature landscaping: Most existing homes will have some developed landscaping, whereas new development will require the installation of landscaping
Home renovation options: You can choose the timeline of your renovation expenses and complete renovations as you can afford to do so
Pros of Building
Customizations: You can have all that you desire in your dream home design and interior features
Total control: You can have the final decision for most decisions regarding floor plan, materials, and interior features
No competition: In 2022, real estate is a seller's market; therefore, there are limited options when looking for your dream home. Building your dream home ensures that there will not be a bidding war and you will have peace of mind
Less ongoing maintenance: With new construction, you will have minimal costs on the horizon as compared to an older, existing home
More energy-efficient: Newer homes are built with energy-efficiency in mind
Cons of Buying
Time: Finding your dream home can be time consuming and that's why working with an experiencing real estate agent can help make the process quicker
Competition: 2022 presents a shortage of homes available for purchase and working with a real estate agency that has exclusive access to listings is crucial
Compromise of desired features: There may be key features of your dream home that you do not find available in an existing home. Renovation is always a viable option and our team of expert contractors can discuss your options with you
Cons of Building
Unexpected costs: It is not unusual to incur unexpected costs in your new home construction
More time: Building a new home is a much lengthier process that purchasing an existing home
No landscaping: You will need to add the cost of landscaping to your new home construction cost
Land preparation: You will need to purchase land to build your new home and your real estate agent can help you navigate this process
"Location, location, location" is a common mantra in real estate but most people have no idea why it's great advice.
Here are a few factors to consider when determining if a home is indeed in a good location:
Centrality: Land is a finite commodity; therefore if you choose to live in a populous area with little room for expansion, home prices will be higher. Whereas, if you choose to live in a less populous area with room for expansion, home prices are often cheaper.
Neighborhood: A truly great neighborhood will be accessible to major roadways, will have an appealing appearance aesthetically, and will offer amenities such as a grocery store, playgrounds, walking paths, and/or shops nearby.
Development: Plans for future development near your home are important considerations. Plans for new schools, hospitals, public transit, and civic infrastructures are all great factors in determining the future increase in your home value.
Lot location: Where specifically your home is located geographically matters. Is the home located near a busy highway or is the home near a body of water? The lot location of your home will impact insurance cost as well as personal preference.
The house itself: Your house is a depreciating asset whereas the lot itself, upon which your house is located, will increase value over time. With that said, choose a lot based on size, shape, and condition rather that choosing a lot based on how nice a house is. A house can always be updated, a lot cannot be.
Interest rates for home loans in 2022 are supremely low and one would be wise to consider taking advantage of home ownership as well as real estate investment. Shop around for the lowest interest rates and take your offers to competitors to see if there is room for negotiation. Remember, you never know until you ask.
When was the last time you had your home value appraised? In 2022, the value of houses has soared and to say that real estate is a seller's market is an understated. Now is a fantastic time to capitalize on profit and invest in your dream home.
There are many steps in the home buying process and one could purport that the home inspection is the most important. First, shop around for the best prices for a home inspection and read reviews. The more thorough, the better. You want to know upfront about the infrastructural details of your potential new home so you can possibly negotiate the seller fixing the issues prior to move-in. Ultimately, when buying a new home, the last thing you want are surprises...unless you're building new construction, for which cases surprises can mean getting closer to living in your dream home.