When it comes to buying a house, there are more factors to consider than just price, resale value, and location. According to CoreLogic, there are seven psychological factors that can influence a homebuyer's decision. Emotion plays a big role in the decision-making process, as a home that tells a story can be more valuable than one that doesn't. Location is also important, as the proximity of a home to highways, utility lines, and public transportation can affect its overall value.
The size and condition of the home are also important when determining its value. Unfinished garages, attics, and basements are generally not counted in usable square feet. The impact of a project or improvement varies depending on the market you're in and the value of your current home. For example, according to data from our home improvement value calculator, a finished basement in Portland is 5 times more valuable than finishing a basement in Atlanta.
The number of other properties for sale in your area and the number of buyers in the market can also affect the value of your home. If there are a lot of buyers competing for fewer homes, it's a seller's market. In contrast, a market with few buyers but many homes is called a buyer's market. Short-term interest rates don't directly affect long-term interest rates, so an increase in the Federal Funds rate doesn't mean that a 30-year fixed-rate mortgage will become more expensive.
Your lifestyle is also an important factor when it comes to buying a house. The house's architecture should complement your lifestyle and aspirations. Outdoor spaces are just as important as indoor spaces for some people. House numbers can also determine if a property is suitable for the superstitious, as some numbers are considered “luckier” than others in some cultures.
First impressions count when it comes to buying a house. Research has found that the average time to sell a home decreased to 40 days after having undergone a “facelift”. Social proof is also key when it comes to influencing purchasing decisions when it comes to buying a home. When you find a home you want to buy, you must first find out if you can afford it by examining your income, savings (for down payment and closing costs), and recurring debt.
You can buy a home with as little as 3.5% down payment with an FHA loan, but there are bonuses for getting more. In a buyer's market, low prices increase the chances that time will work in your favor and make your home appreciate in the future. Before you make that seemingly great home purchase, learn to analyze what affordability means and make sure you have saved enough money for your down payment. If you base the amount of house you buy on future income, you could end up in a lasting relationship with your credit cards. When it comes to buying a home, especially the house you've been thinking about all your life, age does make a difference. With more than 320,000 mortgages organized within Australia, Smartline has become one of Australia's most respected mortgage brokerage groups.