Dear Heather,

We are first-time buyers. We’ve been looking around but how do we know if we’re getting a good buy?

First-Time Buyers

Dear First-Time Buyers

There’s no such thing as a perfect home (especially in a place as small as Bermuda), but some homes are more ideal for your household than others. When you look for your home, carefully consider these four criteria: price, features, location and condition. The closer you get to meeting all four criteria, the better your chances are of making a good buy.

Price

A good buy is not all about price, but for first-time buyers, affordability is key. To determine what you can comfortably afford, talk to your real estate professional. He or she can recommend a lender who will prequalify you for a purchase loan. When you know how much you can spend, it will be easier to shop for homes within your price range. With luck, one will stand out. If you are getting a mortgage, the house will have to be appraised and that will give you an idea of whether you are paying fair market value.

Features

The size of your household and your activities determine the features you want in your home. The number of bedrooms, baths and living areas are a matter of comfort and convenience.

If you work a lot at home, you’ll want a private home office or a computer nook. If you have a family, you may want a family room for the kids, a separate laundry area, or a fenced yard and covered patio for entertaining. An eat-in kitchen may be more important to you than a formal dining room. You may want an outdoor kitchen — or at least room for one. Try to separate your wants from your needs; your first home is rarely your last and if it is going to suffice your needs for the next five years, it probably has all the features you “need”. Think about your daily life from morning to bedtime and how your home can make these activities easier and more pleasant. This should be your “need” list, and will help you look at homes more objectively.

Location

Location has the biggest input on resale value. Some areas will always be more expensive to live in than others. Neighbourhoods that are well kept tend to maintain higher home values. Homes that are centrally located, and amenities such as schools, shopping, restaurants or beaches or grocery stores, tend to sell for more money than homes at the extremities of the island.

What is the best home you can find in the area where you want to live? If these homes are out of your range, you can compromise — buy a smaller home or a home that needs a bit of work in the best neighbourhood you can afford.

Condition

Condition refers to the state of repair. Does the home have kerb appeal? Is it updated and well-maintained, or does it need extensive and expensive remodelling? Carefully consider any deferred maintenance, such as a roof or floor that may need to be replaced in only a few years. Consider the design and functionality — is the kitchen too small and would you be able to afford to remodel it?

The advantage of buying a home that needs updates and repairs is that it will cost less than updated homes in the same neighbourhood, plus you get to choose the fixtures and fittings you want and like and can budget accordingly. Be prepared to compromise. Don’t frustrate yourself or your family looking for perfection. More often than not, your first home won’t have every feature on your checklist, or it may be a little further away than you would ideally like. You’ll be happy if it has most of the criteria you want.

Final thoughts

Do keep your first home at a price you can afford. If you have any extra money, save it and put it towards an improvement that will increase the home’s value when you come to sell it again.

• Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 27 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated in confidence. Read this article on Facebook: Ask Heather Real Estate