What to Look for When Buying a House: A Comprehensive Guide (2024)

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

• Before shopping for homes, make two lists: things you can't live without, and things that would be nice to have.
• Some of the most important factors to consider when buying a house are price, size, and location.
• Knowing your priorities ahead of time can help you act fast in a hot real estate market.

The housing market moves quickly, so knowing what you want before starting your homebuying journey is vital.

This will allow you to make an offer quickly when you find a home you like — hopefully beating out the competition and snagging that dream home.

Still, knowing what to look for is harder than it sounds, especially if you're a first-time homebuyer. Not sure what to look at when starting your home search? Follow this checklist for first-time homebuyers.

Location and neighborhood

Location is something you're stuck with until you move, so be sure you're choosing a city, school district, and neighborhood that suits your needs.

"Focus on buying in the perfect location and then make the house perfect over time," says Glen Pizzolorusso, associate real estate broker at Glen Christopher Luxury Collection in Connecticut.

Proximity to work, schools, and amenities

You'll want a community that's within easy driving distance of work, as well as amenities your family needs — things like grocery stores, a gym, parks, trails, playgrounds, and other services you plan to use often.

If you have kids — or plan to have kids while living in the house — you should also check which school they would attend should you live there. With younger kids, you should think about the middle or high schools they would go to in the future, even if that's a few years away.

Safety and community vibe

Figure out what you need out of a neighborhood. Do you want to live in an area with low crime rate statistics? A place where your neighbors have similarly aged kids or interests as yours? Think about what's most important to you and the rest of your household.

Then, do some research. Walk the neighborhoods you're considering, talk to residents, join community Facebook groups, and tap your real estate agent's knowledge. These can all give you insight into the local vibe.

Home's condition and age

A home's condition is going to play into what you offer for it, as well as what you can expect to pay for the property (in repairs and maintenance) after you move into the home. It can also affect future resale value.

Structural integrity and potential repairs

Make sure to schedule an inspection before closing on a home. This will allow you to evaluate the structural integrity of the home, as well as what might need repairing (or if any big issues lurk below the surface.)

Home inspection essentials include assessing the roof, the appliances in the home, the foundation, and other major features, and every inspection will show some faults — even on brand-new homes. But think about which issues you can accept and which are deal-breakers.

While they aren't always necessary, home warranties can cover the cost of repairs to your home's major systems and appliances.

Age of the property and its implications

You should also consider the age of the home and the systems and features within it, as it could indicate what issues and repairs you'll need once you move into the home.

For example, a shingle roof usually only lasts about 20 years. So, if the home you're eyeing is 15 years old and has never had the roof replaced, that's something you'll probably need to pay for in the next few years.

Also, take into account how the home's age could impact its future resale value. This is particularly important if you're not sure how long you'll be in the home.

Size and layout

The size and layout of your home will play a big role in how well it can serve your needs as a household — both now and in the future. Make sure you consider the following:

Adequacy for your current and future needs

How many bedrooms do you need? Maybe you also need an office or playroom. If you have several kids, you might need a large living room. Square footage is really expensive and sometimes impossible to add, so be honest about how much space you really need.

Make sure to think ahead, too. If you think you may have another kid or two, be sure there's enough space to allow for those plans. Hope to get a dog? Look for a spacious yard or a place without carpets.

Flexibility of the space for modifications

While it'd be nice to know your future plans without a doubt, that's not always the case, so make sure you're buying a home that has some flexibility just in case. Is there a wall you could knock out to open more space if needed? A garage or attic you could potentially finish should you need an extra room? Having an easy-to-modify layout can give you more options down the road.

Legal and financial considerations

There are many legal and financial considerations that go into buying a home, too. Here are a few you'll want to take into account while on your home search:

Property taxes and homeowners association fees

Both property taxes and HOA dues can take a big chunk out of your wallet. To find out what a home's estimated property taxes are, you can check with the county's appraisal board. HOA dues should be listed on the home's listing or you can request them from the listing agent.

You may also want to look into the HOA's rules and regulations, as these could impact what you can do with your home after move-in (what pets you can own, what modifications you can make, etc.)

Zoning laws and potential for future developments

The zoning laws in your area will have a big impact on what renovations you can make on your home or, in many cases, even how you can use the home. (For example, you may not be allowed to rent out the house or list it on Airbnb.)

To learn about a home's zoning limitations, contact your city's planning and development department. They can help you get details for specific properties or communities.

You should also research any future developments that are planned for the area surrounding a home. Is a big shopping center on the way? An apartment complex? A new school? These could all impact the traffic, crime, home values, and other conditions in the community.

Market trends and resale value

Homes aren't isolated. Instead, they're a part of a larger ecosystem that can impact what they cost and what return you'll see by investing in one.

Local real estate market trends

Talk to your agent about the local real estate market. Is it a buyer's market or a seller's market? This will impact the price you'll pay for the home, as well as how much sellers will be willing to negotiate.

Ask about how fast the market is moving, too. If homes are flying off the shelves, you'll need to be prepared to make fast offers that get noticed right off the bat. If not, you may have more leeway to take your time and be more strategic.

Potential for appreciation

Unless you're buying your forever home, it's also a good idea to consider how easily you'll be able to sell it when the time comes — and at what price. Will demand for real estate remain high in the area for the next few years? Is the neighborhood more likely to improve or take a downturn? Are the features in your home classic and timeless, or could they fall out of favor by the time you sell? These are all factors impacting home value, both now and years down the road.

Energy efficiency and sustainability

How energy efficient a property is will influence its costs over the long run, so make sure you factor in the following when considering a home.

Insulation, windows, and energy-efficient appliances

The more energy-efficient a home is, the lower your energy and utility bills will be. The same goes for appliances (Energy Star-rated ones are best!).

Energy-efficient homes tend to sell for more, too, so these features can also impact your eventual resale value.

Sustainable materials and solar potential

If you're looking to reduce your environmental footprint, a home built using sustainable materials might be something to consider. You should also factor in its future potential for solar panels. To check whether a solar panel system would work on the home — and how much it could save you down the line — enter the address into ProjectSunroof.com. This Google-built tool can break down all the details for you, including how much sunlight the home gets based on its roof layout.

Inspection and appraisal

These are two steps you'll take after you've made an offer on a home, but they're incredibly important. Not only can they tell you about the condition of the home, but they'll also shed light on its value — and how much you should pay for it — too.

Importance of a thorough inspection

Inspections are vital — even on brand-new homes. They'll tell you more about a home's condition, systems, features, and appliances, and give you an idea of how long those will last — and what potential repairs need to be made.

If you have an inspection contingency in your contract, you can use the inspection findings to negotiate repairs or pricing on the home (or pull out of the deal altogether.)

Understanding appraisal value and its impact

An appraisal determines the market value of your house, and mortgage lenders use this number to determine how much they're willing to loan out for a property. If the appraisal comes in lower than what you offer, you'll have to make up the difference or renegotiate with the seller. If you have an appraisal contingency in your contract, you can also withdraw from the transaction.

Making an offer

Once you find a place that checks all the boxes, it's time to make an offer on a home. These tips can help.

Strategies for competitive but fair offers

Have your agent research comparable properties before making an offer on a home, as this can give you an idea of what price the seller may expect.

You should also include a mortgage preapproval letter, showing sellers that you have the financing to back up your offer and consider what earnest money you want to offer, too. Earnest money deposits are a good way to show you're serious about a home and stand out from other buyers.

Negotiation tips for favorable terms

There are many strategies for negotiating home purchase deals that are favorable for both parties. For one, you can offer the seller a leaseback, which allows them to rent the home back from you for a certain period of time while they find a new home.

You can also be flexible on your closing date or waive contingencies (when your agent says it's safe to do so). This can make the deal less risky for the seller and more apt to pick your offer.

Closing the deal

After you've found your dream home and your offer has been accepted, it's time to close on the deal. Here's what that looks like.

Preparing for closing costs and paperwork

Your closing day is when you'll hand over the check for your down payment and closing costs. You can find the total for these on your closing disclosure form, which your lender must give to you at least three days before closing. You'll usually need a cashier's check in this amount.

You'll also need to sign lots of paperwork on closing day, so come ready. Often, your real estate agent will attend closing with you and answer any questions you may have about the documents.

Final walkthrough and ensuring everything is in order

Before finalizing the sale, you'll get one last chance to walk the home and make sure it's as expected. Did the seller clear out their belongings? Is the property clean and free of trash? Did the repairs you requested get made? If not, you may want to delay your closing until these issues are addressed.

FAQs

Can the future resale value of the home affect my purchase decision?

Evaluating a house's resale potential is critical, as you want to be sure you're making a smart investment of your money. It can also play into how much you should offer for a home (you wouldn't want to pay a premium for a house that's only going to depreciate over time.)