looking to buy first house...any tips?

[btr]

Originally posted by Moxie:

Try to avoid what I call a 'border house'. That's a house with a large amount of empty land directly behind it or next to it. You could purchase the house only to have a strip mall go up next to you in a few years.

I disagree if it is the edge of town. You can check to see what the area is zoned for (although that can change). A big empty area or farm land means fewer neighbors and a bigger area to play. We enjoy watching the wildlife in our extended backyard.

Originally posted by Moxie:

Try to avoid a house that has neighboring houses much smaller or larger. If you buy a house and the house next door is huge in comparison, this will hurt resale value, because your house will look puny. If your house is huge compared to the house next door, your home value will probably wind up overinflated. Great at selling time, but your insurance and taxes will be higher in the meantime.

I think it is exactly the opposite. The larger neighbor's house will pull a smaller house's value up (including taxes). Having the biggest/nicest house in the neighborhood tends to have the value pulled down. These mainly come into play when building a new house. The effect is probably already built in when buying a used home.


One other thing I'd recommend is to same up enough $'s so you don't have to pay mortgage insurance (PMI). It is expensive and does nothing for you. It only insures the lender in case you default.