Disadvantages of Buying a New Detached Single-Family Home

After the advantages, lets look at some of the possible advantage of buying a detached home.

You might not always get what you see

It often happens that many prospective homebuyers who go to see the housing being constructed by a certain builder are shown beautifully decorated and furnished homes. It is common for builders to spend thousands of dollars in decorating a model home in order to lure potential homebuyers to purchase.

You find modern appliances, beautiful furniture, window coverings, fireplace finishes, landscaping and many other features that you might desire in your home. Most importantly, all these extras make the place look like your dream home.

Detached new home

At this point of time you should get a very clear statement from the salesperson regarding which of the amenities and features that you are seeing in the model home are included in the sales price of the home.This is extremely important because many homeowners end up spending several thousands of dollars more off to having purchased the home in trying to make it look like the model home that they saw.

Prices are less negotiable

For upcoming homes that are being newly built, the builders are usually much more frigid wind comes to negotiating over the sales price. This becomes even more difficult if the housing happens to be in an area that is highly in demand or being built by builder who is popular.

The builders do not negotiate over the sale price of the homes that are coming up in order to maintain the integrity of the project. If they cut the prices for one customer, pretty soon that can have a rippling effect.

Other buyers will ask for a similar discount and before you know it the value of the homes in that project have come down. In fact, a builder slashing the prices for the homes for sale is a warning sign that may point out that the project is in jeopardy. These builders also may offer to throw in extras such as upgrade on furnishings, better kitchen appliances and a superior finish to your interiors.

Some builders also attract potential homebuyers by selling the home close to the actual building cost and pulling in a huge profit by selling extras and upgrades.

You should carefully look at the expense of buying items for the home from the builder himself even though it might seem like the easiest and the most convenient thing to do because you don’t have to go shopping for those later on separately. You might be able to save some money if you can get a better deal on home appliances, furnishings and other interior embellishments from elsewhere.

New homes might be more expensive than older ones

This is no surprise since the cost of construction, raw material, labor and professional expertise has gone up over the past several years. many builders will also look to charging a premium for providing a modern and new housing set up as they know that it will be preferable to older homes to many potential home buyers

Newer homes might not be built in as prime locations as older homes

It is an obvious fact that builders are running out of prime locations in popular cities and towns as the years go by. The land that was available in the prime and budding locations of the city 10 years back has long since run out. The newer homes that are built are either built further away from the main city or in certain undesirable locations such as landfills, steep hillsides etc.

If you want to locate yourself in an extremely prime location in your city, you might not have an option other than to buy an older existing home or apartment. As time goes by however, the location that is not considered to be prime and worthy now might become more in demand as the land needed to build for the homes become lesser in the future.

New homes may have hidden operating costs

1st of all, you should consider the various amenities and features that your new home has that might require higher maintenance costs in the future. It is nice to have a swimming pool and tennis court in your home but you should figure in the amount you would have to spend to maintain the same as well.

If your home happens to be a part of a housing society, there are probably going to be a society maintenance charges as well for maintaining the overall society, clubhouse, swimming pools, gymnasium etc. Some housing societies keep their monthly charges for the home owners low but then slap them with a special valuation of the repairs required for repainting the clubhouse or some such expenditure.

If your house happens to be a part of the housing society, take a careful look at the format they used to charge the society maintenance fee and whether there is a clause for paying a higher sum of money sometime in the future when additional expense is required.

Second thing to watch our for when living is a housing society is that there might be certain amount of restrictions as to the kind of modifications you can think about in your home. For example, the society might not permit certain kind of colors that you can use to paint the exterior of your home in order to maintain the overall look, feel, standard and overall value of the homes in the society.

You might not be allowed to use your own house broker

Builders usually have their own sales staff to handle potential homebuyers. They have their own contracts and sometimes also require you to deal with their agents and brokers rather than have one of your own. This is usually not never see able and if you are not comfortable with this then your only option is to walk away from the deal.

However, an alternative to this is that you at least use an independent appraiser to appraise the value of your home and have your contract reviewed by a real estate attorney of your own choosing. This will offset some of the disadvantage of not being able to use your own broker and safeguard you against the commonest pitfalls that a a person can make when buying a home.

It is always good to look at a certain situation from all perspectives. While buying a new home has its advantages, it is obvious that it has its disadvantages and potential for pitfalls as well. Just because a home is new does not mean that it is going to be without flaws.

Homes are built by people and human error is always possible. The intention of the builder is also very important. He should not be the kind of person who is tempted to cut corners to maximize their profit. On the other hand, there are good builders and those who are simply just not as good at their jobs.

Therefore if nothing else, even a brand-new home should be thoroughly inspected by a professional property inspector to discover these possible human errors before you purchase it. Believe us when we tell you that this is important and only a professional and a competent property inspector might be able to point out certain flaws that might be a deal breaker in purchasing the home.

These flaws in the property will probably never become obvious to you even if you make a great effort in inspecting the property yourself until it’s too late.

Benefits And Disadvantages of Buying A Brand New House

Advantages Of Buying A New Single Family Home

We are now going to talk about choosing different kinds of home to buy when it comes to making the choice. The three common kinds of housing that you can pick up to stay in:

  • A detached family home,
  • a condominium
  • and a cooperative apartment.

Different people might have different definition of what kind of a structure they associate with what they think of a home. If you have always stayed in busy metropolitan city, the odds are that you have stayed in an apartment in high-rise multi-story building.

However, if you have been raised in a suburb or in a smaller town, then your idea of a home might be the kind of place where you have a garden all around the home, windows looking out on a lush green patio or the backyard.

These kind of residences are known as a detached single-family home. This is because these kind of homes are not attached to any other home and are located on separate pieces of property and land. In this post we are going to discuss the advantages of choosing a new detached single-family home to buy over other kinds of property.

Detached single-family homes come in two basic types:

  • new homes and
  • used and previously lived in homes.

Advantages of buying a new detached single-family home

Detached single-family home come with their own set of advantages. They are as follows.

A newly constructed home is more suitable to modern day needs

A home that has been recently built is likely to have the modern amenities as well as features that the modern consumer desires. There is likely to be ample lighting, electrical outlets, provisions to put all modern appliances as well as modern furniture.

The kitchen will probably have the kind of set up where you can put in a dishwasher, microwave and fit in a refrigerator as well. The bathroom will have adequate lighting and multiple outlets to plug in your electric shaver’s etc.

The living room and the bedroom again will be able to accommodate all your modern gadgets such as your Internet connection, your laptops, DVD players, wall mounted televisions etc. You will also find it more convenient and easier to rig up your phone connection, fax machines and so on.

Since a certain amount of planning is going to go into building a new home to accommodate the needs of the modern homeowner, the entire setup will end up being much more neater. You will not have to deal with making cable modifications, using extension cords etc. to accommodate all your gadgets.

Compliance with Federal Safety and Environmental Standards

The newer built homes and are more likely to comply with the latest federal guidelines of safety regulations regarding fire hazards, electricity connection, plumbing extra. There is also going to be the least likely chance of use of hazardous materials that has been banned such as asbestos, lead based paints and other toxics substances.

The house is also more likely to be built according to other safety and environmental codes and safeguarded against natural calamities like earthquakes, floods, heavy rainfall, snowstorms etc. It is likely to be better insulated and offer you more savings on power consumption.

Cheaper to operate and maintain than an older home.

Just like new car, a new home is also likely to cost you less to operate and maintain at least for the first few years since everything is newly built, you will not have problems with plumbing and fixtures as you might with an older house that requires these things to be either repaired, replaced or maintained.

Also, the new home is more likely to have energy efficient systems in place such as more efficient heating and cooling, modern plumbing and electricity supply. You’re likely to have energy efficient appliances with proper insulation in the house that save your money on the power consumption bill.

The one thing to keep in mind is that the quality and the overall standard of a newly built home is greatly dependent upon who has built it. If the builder is reputable and has a record of building good-quality houses that do not cause homeowners problem for years, then it is a good buy.

However, if you find out that homeowners staying in old developments by that same builder are having problems, then you might want to reconsider. You should inquire into the reputation and the user experience of other home owners of the same builder before you close on the purchase.

You should find out if the builder finishes the construction on time, honors all contractual obligations including the completion of any unfinished construction and whether he cooperates with fixing any defects that occur later on. Find out if any previous homeowners had to take legal action to get the problems corrected. Another good sign of the popularity of the builder is how quickly the housing built by him gets sold and how much that property appreciates over time.

benefits of buying a brand new home

Disadvantages Of Buying A New Detached Home

After the advantages, lets look at some of the possible advantage of buying a detached home.

You might not always get what you see

It often happens that many prospective homebuyers who go to see the housing being constructed by a certain builder are shown beautifully decorated and furnished homes. It is common for builders to spend thousands of dollars in decorating a model home in order to lure potential homebuyers to purchase.

You find modern appliances, beautiful furniture, window coverings, fireplace finishes, landscaping and many other features that you might desire in your home. Most importantly, all these extras make the place look like your dream home.

At this point of time you should get a very clear statement from the salesperson regarding which of the amenities and features that you are seeing in the model home are included in the sales price of the home.This is extremely important because many homeowners end up spending several thousands of dollars more off to having purchased the home in trying to make it look like the model home that they saw.

Prices are less negotiable

For upcoming homes that are being newly built, the builders are usually much more frigid wind comes to negotiating over the sales price. This becomes even more difficult if the housing happens to be in an area that is highly in demand or being built by builder who is popular.

The builders do not negotiate over the sale price of the homes that are coming up in order to maintain the integrity of the project. If they cut the prices for one customer, pretty soon that can have a rippling effect.

Other buyers will ask for a similar discount and before you know it the value of the homes in that project have come down. In fact, a builder slashing the prices for the homes for sale is a warning sign that may point out that the project is in jeopardy. These builders also may offer to throw in extras such as upgrade on furnishings, better kitchen appliances and a superior finish to your interiors.

Some builders also attract potential homebuyers by selling the home close to the actual building cost and pulling in a huge profit by selling extras and upgrades.

You should carefully look at the expense of buying items for the home from the builder himself even though it might seem like the easiest and the most convenient thing to do because you don’t have to go shopping for those later on separately. You might be able to save some money if you can get a better deal on home appliances, furnishings and other interior embellishments from elsewhere.

New homes might be more expensive than older ones

This is no surprise since the cost of construction, raw material, labor and professional expertise has gone up over the past several years. many builders will also look to charging a premium for providing a modern and new housing set up as they know that it will be preferable to older homes to many potential home buyers

Newer homes might not be built in as prime locations as older homes

It is an obvious fact that builders are running out of prime locations in popular cities and towns as the years go by. The land that was available in the prime and budding locations of the city 10 years back has long since run out. The newer homes that are built are either built further away from the main city or in certain undesirable locations such as landfills, steep hillsides etc.

If you want to locate yourself in an extremely prime location in your city, you might not have an option other than to buy an older existing home or apartment. As time goes by however, the location that is not considered to be prime and worthy now might become more in demand as the land needed to build for the homes become lesser in the future.

New homes may have hidden operating costs

1st of all, you should consider the various amenities and features that your new home has that might require higher maintenance costs in the future. It is nice to have a swimming pool and tennis court in your home but you should figure in the amount you would have to spend to maintain the same as well.

If your home happens to be a part of a housing society, there are probably going to be a society maintenance charges as well for maintaining the overall society, clubhouse, swimming pools, gymnasium etc. Some housing societies keep their monthly charges for the home owners low but then slap them with a special valuation of the repairs required for repainting the clubhouse or some such expenditure.

If your house happens to be a part of the housing society, take a careful look at the format they used to charge the society maintenance fee and whether there is a clause for paying a higher sum of money sometime in the future when additional expense is required.

Second thing to watch our for when living is a housing society is that there might be certain amount of restrictions as to the kind of modifications you can think about in your home. For example, the society might not permit certain kind of colors that you can use to paint the exterior of your home in order to maintain the overall look, feel, standard and overall value of the homes in the society.

You might not be allowed to use your own house broker

Builders usually have their own sales staff to handle potential homebuyers. They have their own contracts and sometimes also require you to deal with their agents and brokers rather than have one of your own. This is usually not never see able and if you are not comfortable with this then your only option is to walk away from the deal.

However, an alternative to this is that you at least use an independent appraiser to appraise the value of your home and have your contract reviewed by a real estate attorney of your own choosing. This will offset some of the disadvantage of not being able to use your own broker and safeguard you against the commonest pitfalls that a a person can make when buying a home.

It is always good to look at a certain situation from all perspectives. While buying a new home has its advantages, it is obvious that it has its disadvantages and potential for pitfalls as well. Just because a home is new does not mean that it is going to be without flaws.

Homes are built by people and human error is always possible. The intention of the builder is also very important. He should not be the kind of person who is tempted to cut corners to maximize their profit. On the other hand, there are good builders and those who are simply just not as good at their jobs.

Therefore if nothing else, even a brand-new home should be thoroughly inspected by a professional property inspector to discover these possible human errors before you purchase it. Believe us when we tell you that this is important and only a professional and a competent property inspector might be able to point out certain flaws that might be a deal breaker in purchasing the home.

These flaws in the property will probably never become obvious to you even if you make a great effort in inspecting the property yourself until it’s too late.

3 Golden And Simple Rules For Buying The Right House

Three fundamental principles for selecting your home.

There are three fundamental rules that one should try and adhere to when selecting a home to purchase. These are not hard and fast rules and exceptions do exist.

The principle of progression: Buy one of the cheaper homes on the block

You will be advised by certain professionals such as real estate agent or the property appraiser that it makes more sense to buy the cheaper homes on a certain block. This means that if you are getting a home in a certain area where all the rest of the other houses are priced much higher than what you are getting your home for, then it is likely to be a good and profitable buy.

3 simple rules of choosing the right house

For example although the homes in that neighborhood are in the range of $200,000-$225,000, you are getting to purchase a home in the same neighborhood for $165,000. This usually means a good deal for you because anytime that you want to sell in the future, you are likely to get a much better price.

In a nutshell, the value of the homes and properties around your house which are more highly priced tend to pull up the price of your property as well. However, things may not be exactly as they seem to be. There might be a good reason why the home you are getting is valued at a lower price. So before you pull out the checkbook and make the payment, look at the property carefully and have it deftly appraised.

It is possible that the property is going for a cheaper price because it has certain defects.

  • Curable defects. When a property has defects that are mostly cosmetic and minor in nature, they are known as curable defects. This means that even though you have to put in extra money to bring the property up to a certain mark and standard, it will still be a deal and cost less as compared to the prices of the property existing in the same neighborhood.

    Let’s say that the property only needs a good paint job or a little bit of landscaping to make it livable. Perhaps it means repairs like replacing of the floorboards or addition of certain facilities like lighting fixtures. If you have to put an additional $20,000 in a curable defects for a home that you are getting for $165,000, the purchase of the home still costs you $185,000 which is a deal as compared to the price of the home’s existing close by which range between $200,000-$225,000.

    Problems in the property such as small deficiencies you can cure by upgrading, repairing or replacing in an inexpensive manner are known as curable defects. These include painting, modernizing a bathroom or kitchen, installing new counters and cabinets and upgrading electrical systems.
     

  • Incurable defects. Another reason why you might be getting a property at a cheaper price as compared to the neighboring houses is that it might have some serious problems which are not so easily fixed. For example the property might be located next to a garbage dump or might be really ugly. If you have to spend another hundred thousand dollars in replacing the foundation, putting in a new plumbing or complete rewiring, purchasing such as the property doesn’t make sense.
    Serious deficiencies in a property like this are called incurable defects.
    They are not feasible to correct if you want to maintain a semblance of order in your home affordability. Not only will it eat into your financial resources but will more than likely make you end up owning the most expensive house in the neighborhood which is never really good in terms of recovering the money that you’ve spent one it comes to reselling the home.

This does not mean that all rehabs are to be frowned upon. You just have to get into a more careful analysis of several factors and how it is going to affect the prospect of getting your money back when you sell in the future.

There is a benefit in renovating cheaper homes as long as you’re getting it for a price that is much less than the prevailing value of the homes in the neighborhood. The amounts that you can spend on a home to rehabilitate it usually depends upon the difference in the price of the home that you purchase and the prevailing price of the average home in the neighborhood.

If you take the previous example in mind, buying a house for $165,000 where the prevailing market rate is $225,000 means that you can afford to spend no more than $60,000 to bring your home up to the prevailing standard set by the other homes in the neighborhood. This is because, staying within limit and carefully planning the rehabilitation of the home ensures that you get your money back when you resell the home in the future.

The principle of progression works well with the location principle when choosing a home. Buying one of the less expensive homes in a good neighborhood improves your chances of property appreciation in the years ahead and maximizing your return on the sale.

Principle of regression: Do not buy the most expensive house on the block

The principle of regression is completely opposite to the principle of progression. This principle states that when you buy the most expensive house on the block, you are likely to suffer when you sell the home in the future.

Just like the higher value of homes around the cheaper home tend to pull its value up, the cheaper homes around a very expensive home might tend to pull its value down. Another problem with buying the most expensive house in the neighborhood is that bringing any improvements in the home do not increase their value at all.

The value of the home is already high as far as the home appraisal is concerned because it is already estimated to be more highly priced than any of the other homes in the neighborhood. If you buy a home that is worth $200,000 in a neighborhood where all of the homes are around the $150,000 mark, putting an additional $50,000 to modernize the bathroom or putting in a new kitchen will not increase the value of the home to $250,000.

This is going to be a problem when you resell the house. While nobody will deny that you have indeed rehabilitated or improved the home by putting in a new kitchen, people are typically hesitant to buy $250,000 home in a neighborhood where no other house matches the same kind of quality standard.

When people want to spend $250,000 on purchasing a home they want to stay in the neighborhood were all near the homes are of the same standard as well.

Over improving a home by excessive improvements is a possibility and a trap that many homeowners have indeed fallen into. The money might be well worth the expenditure as long as you are going to stay in it and use the improvements you have made.

But it is a fact that most of the homeowners change homes twice or thrice in their lifetime.

While some people stay in the home for their entire lives, most of us change residences. The point is that the improvements might serve you well for as long as you’re staying in the home but when you try to sell the home, those improvements will not fetch you an extra price. The money that is spent on the rehabilitation goes to waste. This phenomenon is called over improving a property.

Over improving the property is not just applicable to the more expensive homes but can also happen when you buy it one of the least expensive homes in the neighborhood.

It is just a matter of controlling and evaluating how much you should spend it in fixing the home up. You should take a clear view of the kind of properties that exist in your neighborhood and the best time to do it is before you start the rehab work. If you are going to end up with the most expensive house on the block when you finish a project, it is usually advised that you should not do the project.

The principle of conformity: Unusual is usually costly

If you want to have a maximum chance of future appreciation of your home that you buy, you should typically conform in size, age and condition and style to other homes in your neighborhood. This is called the principle of conformity.

Buyers usually do not want to buy a home that sticks out as a sore thumb as compared to every other house on the block. This does not mean that your house should be identical to all of the houses in the neighborhood but should follow a certain pattern which does not make it stand out very overtly.

  • Size This principle suggests that your house should not tower the other houses on the block or vice versa. For a house is smaller than the surrounding houses, use the principle of progression as a guide to bring it into size conformity with the other houses and you will increase your homes value. On the other hand, if you increase the size of your home which is already larger than the existing houses in your neighborhood, you are not likely to add any value to the home as far as appreciation and resale value is concerned.
  • Age It is uncommon to see an older home in the middle of a row of modern houses. However, you can every now and then find a brand-new house located in the middle of older homes. A modern home will look out of place in such a neighborhood and will in fact not fetch a higher value when it comes to reselling the home.
  • Condition The coThe condition that your house is and will obviously have an effect on the resale value. If your house is extremely ill maintained and looks like a dump, it will not fetch a high price. Similarly, by being the best maintained home in the entire locality, you are not likely to increase its resale price either. Even if your home conforms to all of the houses in style you can still over-improve your home with the quality of material, workmanship and appliances in your home if all that greatly exceeds the prevailing neighborhood quality standards.
  • Style and Architecture This is not saying being that the architectural style of your house has to be like all the houses in the neighborhood but simply means that it should follow conformity principle to the general overall look and style of the housing in the neighborhood.

All this does not mean that your house is to be as bland or boring as every other house on the block. The warning sign in to watch out is when people tend to look at your home and think it’s weird, eccentric or feel that it sticks out like a sore thumb or is highly noticeable as compared to the rest of the houses in the neighborhood.

How To Select The Best Neighborhood To Buy A Home

When buying a home, most of the people have a limited amount of money that they can spend on a home. This means that you have to choose one set of advantages over another when it comes to deciding on the kind of neighborhood you want to live in.

For example, a neighborhood that has a good schooling system in proximity might not have such big and grand houses as compared to another neighborhood that is more on the outskirts of the city.

We have already mentioned good characteristics of a neighborhood. At the end of the day you will have to decide whether buying a home in a neighborhood that has good schools is more important to you rather than one that is nearer to the office and saves you an hour of commuting everyday.

how to buy a home in a great neighborhood

Different neighborhoods can be good and advantageous in different ways. The decision can be tough. Just prioritise what is more important to you.

Prioritize your requirements

When you are on a budget and can afford only a certain amount of home, you need to prioritize what requirements are more important to you. Do you want to live in a neighborhood that has great schools, or would you prefer to live in a smaller home that allows for easier maintenance and has outdoor activities available.

Do you want to stay in a more average community that allows you to buy a bigger home or do you want to stay in the heart of the city where you are close to the action day and night.

Do you want a family home or a singles pad that allows you to live your fancy free and footloose lifestyle. At the end of the day, you have to decide what need and what is more important to you.

Research and investigate the neighborhood

As we have already mentioned in the previous section, when trying to estimate the amenities and features of a neighborhood such as health of the local economy, presence of amenities such as parks and entertainment, school quality, crime rate and the stability of the neighborhood, you should do the research and try to find out as much information firsthand as possible. This information is available from several sources and can be tapped into effectively to give you a fair idea of the neighborhood.

Local resources. Check the local library and local chambers of commerce for more information on the neighborhood.

Talk to the people who live in the neighborhood. There can almost be no better source of information than getting information about a neighborhood from the people who actually live there and what they have to say about other neighborhoods that you are considering. People staying in a good neighborhood may be very keen to point out the parking problems, unfriendly and snobby owners as well as other disadvantages of the other neighborhoods that you’re contemplating.

Similarly, residents of a not so good neighborhood may tell you about the problems that they are currently facing and how their neighborhood is not so good as compared to certain other neighborhoods and how they wish that they could move to that particular area.

Renters are an invaluable source of information because since they don’t have a lot of money invested in their home, they are more candid about the shortcomings of a neighborhood and about their future plans of relocating to a better area. Of course, you can observe a lot yourself by driving or walking through the neighborhood at various times of the day and evening to see how charming the neighborhood stays throughout the day.

Get the market statistics from your real estate agent. Days on market statistics indicate how long an average home takes to sell once it’s put on the market for sale. As a rule, the faster the property sells the more likely it is to sell close to the full asking price. Quick sales indicate a strong demand for housing in that area which will be an advantage in the future when you are ready to sell. It will also lead to a brisk appreciation of your home value.

Get help from professionals. Speak to real estate agents, lenders and appraisers to compare the potential value of property in each neighborhood. You should understand that the real estate agent who is responsible for selling a couple of homes in a particular neighborhood may give you disguised information and may not be so forth with us to point out the defects of a particular neighborhood.

However, appraisers have no vested interest in a particular property. Appraisers can charge to analyze the neighborhood property values and pricing trends but are likely to give you a more accurate idea of what your property might be worth in the future and whether it is overpriced or underpriced currently.

It makes sense to spend a few hundred dollars if you’re going to spend hundreds of thousand dollars in purchasing a home, to get an un-biased professional opinion on the neighborhood’s property value.

What Are The Qualities Of A Good Neighborhood

One of the most important decisions that you can make when buying a home is to choose the neighborhood carefully. Buying a home in a good neighbourhood can have several advantages.

Different people look for different facilities and amenities in the neighborhood of their home. This depends a lot on personal need. It is uncommon for a certain neighborhood to have all the good characteristics. Thats why different people choose different kinds of places to live in.

For someone who has children, having good schools close by might be preferable option rather than somebody who is looking to retire and looking for a peaceful area. 

If you’re single and footloose and fancy free, your ideal neighborhood may be a downtown singles condo in a complex that is near to the heart of the city and the action.

The following are some sought after qualities of a great home locality and neighbourhood.

More Appreciation Of Home Prices

One of these advantages is that you can look forward to and appreciated home value in the future.

While you have to pay a premium to buy a home in a good neighbourhood, these costs can often be recovered when you sell your home. Home prices in good neighbourhoods tend to appreciate no matter what the condition of the real estate market is otherwise.

If price appreciation is important to you, this is an important point to remember. A currently good locality may not offer the best returns. The prices of a home in a neighbourhood that is upcoming in a good location may offer more appreciation in home value.

what to look for in a great neighborhood 

Economic health.

The economy of a particular community such as availability of jobs and growing opportunities tends to increase the value of a home in the future. Evaluating the job market and the overall economy health of a particular community and neighborhood will help you understand how a particular neighborhood is going to grow in the future along with the value of your home.

Amenities and Facilities

There are several amenities that might be sought after by a person in a place that one desires to live in. Good roads, lush green parks, ocean views, easy parking, proximity to schools, churches, shopping, places to eat, good transportation, playgrounds and recreational clubs are good examples.

The more of these amenities available, the more of a premium by price are you expected to pay to stay in that neighborhood.

Schools and College System

For a family who has school going children, having good schools nearby is an important factor for good neighborhood to buy a home in. People with children would be very concerned about the schooling system that is available in a particular community and neighborhood.

Choosing a good neighborhood is not always about appreciating the investment in your home, but also about choosing the right community background and environment.

Good schools produce good children which leads to a better community and development in the future. Do not rely on surveys or somebody else’s opinion when assessing the school quality but visit the school yourself and speak with parents and teachers in a particular community to get a first-hand view of the schooling system that is available in the neighborhood your are interested in.

Low Crime Rate

Most of the people today are concerned with the safety of their home and family as well. This is a well judged concern as crime rates in many parts of the country are high. As with choosing a neighborhood with quality schools, do not rely on hearsay or isolated newspaper reports. Communities compile crime statistics, generally by neighborhood. Call or visit the local police department, visit its website or check the towns reference library to get the facts.

Stability

You might wish to purchase a home in a neighborhood that is stable when it comes to changes and development. You do not want to purchase house in a neighborhood that is in a constant state of flux. This means that the neighborhood and the environment that you buy in into today may quickly change in the future.

For example, if you purchased your home because there was a lot of open space and parks around your house, it may quickly change if a multi-storied apartment building comes up in these open spaces. Check with the local planning department and a good real estate agent for the inside information on the future proposed construction projects and proposals in the neighborhood that you are considering to purchase a home in.

Pride of ownership.

The pride of ownership that the people take in their homes is going to determine a lot on how the neighborhood is maintained and shapes up in the future. If you drive through a particular neighborhood where people tend to take good care of their homes, you will be able to see it in the beautifully maintained homes and clean surroundings etc.

Property prices can decline when the homes in a particular neighborhood are no longer maintained and the neighborhood is full of houses that are in decay. Poorly kept houses, abandoned cars, owners that are not staying in the homes but renting elsewhere, high rate of vandalism and crime are all significant the neighbourhood is not being cared for and has the potential to decline further in the future.

Degradation of homes in an area is contagious and can spread from one home to another, quickly encompassing the entire neighborhood making a once good neighborhood decline into disrepair and one of low demand and real estate value.