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My First Place: Lessons Learned
Seven My First Place homebuyers admit their biggest rookie blunders and reveal recession-proof lessons to guarantee home buying success
By FrontDoor.com | Published: 10/20/2009
If you're willing to make the time and effort, taking on home improvement projects yourself can save you money.
Lesson #3: Sweat equity can save thousands
First-time homebuyers John and Jennifer always knew they wanted to add value to the first home they owned. So when they bought their first place in Roswell, Ga., they immediately started remodeling, and they decided to tackle many of their home improvement projects themselves. The couple spent $20,000 remodeling their kitchen, building a new deck and installing a new patio -- upgrades that would have cost $50,000 by their estimation if they had hired a contractor to do the job. If you have the skills, the time and the patience to live with dust and debris for a while, do-it-yourself home improvement projects can save you a big chunk of cash.
Learn More: 10 Ways to Increase the Value of Your Home >>
First-time homebuyers John and Jennifer always knew they wanted to add value to the first home they owned. So when they bought their first place in Roswell, Ga., they immediately started remodeling, and they decided to tackle many of their home improvement projects themselves. The couple spent $20,000 remodeling their kitchen, building a new deck and installing a new patio -- upgrades that would have cost $50,000 by their estimation if they had hired a contractor to do the job. If you have the skills, the time and the patience to live with dust and debris for a while, do-it-yourself home improvement projects can save you a big chunk of cash.
Learn More: 10 Ways to Increase the Value of Your Home >>
Lesson #4: A down payment is never a bad investment
John and Jennifer originally planned to put around $60,000 down on their first home. However, they changed their minds just before closing when they qualified for a loan that didn't require any money down. The homebuyers opted for 100 percent financing and invested their down payment money in the stock market. After losing about half of that money, they regret not putting it into their home instead. Putting some money down is a good idea for any homebuyer because it minimizes your risk and lets you start off with some equity.
Learn More: 5 Ways to Afford a Down Payment >>
Lesson #5: The school district will affect home value
Even if you don't have kids, it pays to check out a neighborhood's school district before buying a home, as living in an area with a sought-after school system raises your property value. John and Jennifer's home, for instance, is in one of the best school districts in Georgia, and their neighborhood typically does well in resale.
Learn More: How to Choose a Neighborhood >>
Lesson #6: A land survey will answer boundary questions
Before making changes to your property, it's a good idea to find out your exact property lines. A month after they moved into their home, John and Jennifer had their land surveyed and discovered that their yard ended 8 to 10 feet closer to their home than the previous owner told them, leaving them confused as to where to build their fence. You can't always rely on the seller's knowledge of the property, so getting a land survey will clear up any uncertainties you have.
Lesson #7: Check building plans for the neighborhood
Shortly after John and Jennifer moved into their home, they learned that a large playground was going to be built in the community -- right next door to them. Since the homeowners have no children, they get to hear the squeaky sound of swings all day, but they don't benefit from having a playground so close by. Plus, having a playground practically in the backyard is hit or miss when it comes to resale -- buyers with kids may see it as a selling point, while others may not. Before buying a home, find out if there are any building plans near your home to avoid surprises after you've moved in.
<< Lessons 1-2 I Lessons 8-10 >>
Keywords: home, house, real estate, buy a home, first-time homebuyers, My First Place, HGTV, tips, advice, inspection, down payment, offers, neighborhood, financing, loan, mortgage, home improvement, renovation