I’m a Real Estate Agent: Don’t Buy a Starter Home If It Doesn’t Have These 6 Features
Buying your first home is an exciting prospect, but a lot goes into the decision — e.g., price, square footage, location, and the available amenities.
As of the fourth quarter of 2023, the average sale price of a home in the U.S. was $492,300, according to the St. Louis Fed. While this doesn’t necessarily reflect the cost of starter homes, even these properties are more expensive than ever before.
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“Due to the costs of homes now, most starter homebuyers are handing over every dime they have in the world to be able to afford their first home,” said Melissa Zimbelman, a real estate agent at Fresh Starts Registry. “That includes borrowing money, emptying out any savings accounts, 401(k)s, grandma’s birthday money stash, and even the coins from the couch cushions, when necessary. That being said, the funds left over to update, renovate and even furnish their first home are slim to none.”
With the barrier of homeownership so high these days, many first-time homebuyers can’t afford to get homes that don’t meet their needs or that are going to require a lot of extra cash to maintain. That’s why it’s important to choose a starter home that has everything you require and minimal upkeep.
But what are the top features a starter home should have before it’s worth the purchase? Here’s what real estate agents Zimbelman and Jared Blumberg said.
Fully Functional HVAC Systems
A starter home should have a fully functional A/C and heating system before you hand over any money or sign the paperwork.
“The cost of repair/replacement of the HVAC system is one of the highest expenses in the house, so making sure they are working to start off with is a priority,” Zimbelman said. “Most homeowners will end up having to make a repair [or] replace an older system in the first 3-5 years of owning a home, unless it has already been replaced. But knowing it is working well to start with is essential.”
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Properly Working Electrical and Plumbing
Similarly, a starter home — no matter its age — should have fully functional electrical and plumbing systems. These systems are costly to repair or replace. Updating either system in a home can cost several thousand dollars or more.
“Having these items checked at the home inspection and, if issues are found, having those addressed by the seller, is important when funds are tight,” Zimbelman said.
New Roof
Even if the roof isn’t brand new, it shouldn’t be in need of repair anytime soon after buying the home. The cost of installing a new roof depends on things like labor costs in your area, your home’s square footage, and the materials used. According to Bob Vila, a new roof replacement can be anywhere from about $5,727 to $12,418.
“As it can be another big expense, making sure the roof is in good working order is important,” Zimbelman said.
Enough Space or Rooms
“A starter home needs to align with the purchaser’s immediate and potential future needs. There is no way to know for certain what your future needs may be, but most people have an idea on where they see themselves and their family over the next 5 years or so,” said Jared Blumberg, founder of the Werner Blumberg Group at Compass.
So, what does this look like? Well, it starts with having enough space and rooms in the house to accommodate your family now and in the future.
“You need this home to have the essential ‘needs’ to support your family for the next 5-10 years,” Blumberg said. “You may need a certain amount of bedrooms, a play area, office, laundry, enough bathrooms or a large enough area for a kitchen table. Places for storage, whether that is an attic, basement or garage may be needed.”
Proper Exterior Doors and Windows
Before buying a home, get an inspection done and do a walkthrough of the property and check the doors and windows — just to make sure there are no noticeable issues.
“This seems like a given, but many homes, even newer ones, have window and door issues,” Zimbelman said. “Older windows that don’t open, or won’t stay open when raised, and doors or windows that don’t seal up fully when closed will cost homeowners money in loss of heating and air conditioning costs, as well as costs for cleaning up after water or pest intrusion.”
Safe Neighborhood
It’s not always about the features in the home that matter the most. It’s also about choosing a home in a safe location.
“This is actually the most important thing about buying a home,” Zimbelman said. “Everything else can be changed over time, but getting a safe location where the homeowners will be safe and that future buyers will feel the same about is imperative.”
Other Nice-to-Have Starter Home Features
While your starter home doesn’t absolutely need to have the following features, they can certainly add value to your home and peace of mind to you and your family.
Working Appliances
“Appliances are expensive, so if a seller is willing to provide working appliances, meaning the buyers won’t have to supply their own right away, that is a bonus,” Zimbelman said.
New appliances can cost anywhere from $500 to several thousand dollars apiece. So, see whether you can get things like the refrigerator, oven and washer and dryer before buying the property. You might need to do a bit of negotiating, but it’s worth a try.
New Flooring and Paint
Depending on the age and condition of your starter home, and your price point, you might not be able to get new flooring or paint. But if you can, it’s a solid upfront bonus.
“Again, when the goal is just getting into a home, buyers can’t be too picky about the cosmetic items, but it is really great when they can find one that has newer flooring and paint,” Zimbelman said.
Home Warranty
“In that first year of homeownership, having the safety net of a home warranty is a good idea,” Zimbelman said. “Sellers will often agree to provide a home warranty, as part of the deal, if asked.”
It does depend on which part of the country your home is located in though. Home warranties aren’t common everywhere, and they might not be something you specifically need. Even so, it doesn’t hurt to see if one’s available. Just make sure it covers everything you need it to before agreeing to anything.
Focus on Your Individual Wants and Needs
Ultimately, it’s important to choose a starter home that matches your budget and current and future needs. Everyone’s different, though, so take a good look at your own goals and situation and make a list of must-have features from there.
“Everyone has a list of needs and wants with their home,” Blumberg said. “The key is to figure out which are ‘needs’ and which are ‘wants’ and try to focus on getting as many of each as possible. Keep in mind, you will never get them all, regardless of budget. If you do not figure this out as best you can in a thoughtful way, you may find yourself in a spot where you need to sell and move sooner than you would like.”
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Don’t Buy a Starter Home If It Doesn’t Have These 6 Features
