December 20, 2018

In It For The Long Run

For the final blog in our avoiding homebuying mistakes series we are talking about the long-term planning involved in homeownership.

Finding the Right Insurance

Before you close on your home you will need to buy homeowners insurance. Shop around to compare coverage and rates to find the best price that meets your needs. Remember that less-expensive policies can come with fewer protections and more out of pocket expenses. And, if disaster strikes, failing to own adequate homeowner's insurance can be more financially distressing than paying a higher monthly premium for the correct coverage.

TIP: Periodically review your insurance coverage to make sure it's up to date and continues to meet your needs.

Consider Resale Value

Most likely, there will come a time when you decide to sell your home. As we shared in our last blog, buyers typically live in their homes for around 10 years. If this isn't your forever home, it's important to consider what features will appeal to future buyers. Just because you don't mind compromising doesn't mean another buyer will feel similarly.

Ask your agent about market conditions and if they suspect the property will be easy to sell. Here are features that can impact resale value and time on the market:

  • Amenities: Features vary, but to determine if a home is lacking something significant, compare it with other homes in the neighborhood. For example, if all the homes on your street have a garage but yours doesn't, it likely won't sell for as much as others.
  • Outdated: A fixer-upper may not be a good fit for some buyers. If your home requires work when you list it, it may take longer for the home to sell or you may need to lower your price expectations.
  • Specialized style: Nontraditional homes don't appeal to everyone. You should take note if your home is comparable in size and style to the other homes in the neighborhood.

Visit My Home® by Freddie Mac to learn more about maintaining your new home.