In October, the median price of a home in the U.S. surpassed $400,000 for the first time ever. With real estate prices on the rise and competition fierce in the market, it's easy to start talking yourself into buying a smaller home than you need.
Luckily, the typical home value of houses in Sioux Falls is quite a bit lower than the national average at $274,303. This means that you can get more house for your money when you move to our lovely South Dakota city.
That being said, there's also such thing as too big of a house. How can you figure out what the right house size is for you and your family, both now and in the near future?
Let's take a look at everything you need to know so you can make an informed decision about the size of your new home.
One of the first steps you will take when looking for a house is to take a close look at your finances. This can give you a sense of what price range you can comfortably afford.
Remember, the amount that you feel comfortable spending might be different than the loan amount you are offered by a mortgage company or lender. Make sure that you are taking into account future income, future goals, and your savings and retirement plans.
Buying a house is a big process, and it's only made more complicated if you're selling one at the same time. If you're buying a home, it's ideal to stay there for a number of years. For this reason, it's important to try and peer down the road of the future and think about how your household might change.
Think about whether you are thinking about having kids, if your parents might move in with you in the future, or if you plan on transitioning to working from home. On the flip side, you might be thinking about the fact that your kids will be off to college soon and you don't need as big of a house as you once did.
One of the best ways to understand the size of a house you need is to look at your current home. Is it too big, too small, or perfectly sized but laid out all wrong?
If you don't know the size of your current home, get out your measuring tape. You can measure each room and consider whether or not they meet your needs.
Take notes about how you feel about your current home including its size and layout. Remember, there are no wrong answers here. It's just about what you are looking for out of an abode!
What is the average size of a house in the United States? According to the U.S. Census Bureau, the average home is 2,687 square feet. That being said, don't be too quick to assume that this is the right size for you.
One way to think about the size of a house is how many square feet you need per person. Some people say that you should have 600 to 700 square feet per person in the household. This means that a family of four should go for a 2,400-2,800 house, while a couple without kids should go for a 1,200-1,400 square foot house.
There's no reason to stick to this as if it's written in stone. However, it can give you a general sense to work off from.
Bigger houses give you and your family plenty of space and generous storage opportunities. They can be great for entertaining and for large families. It also allows you to have more dedicated spaces rather than forcing you to create multi-purpose spaces.
On the other hand, bigger houses can be more affordable both in sticker price and in upkeep. It also can be frustrating if you buy too big of a house and you feel like there are rooms that go unused and collect dust. Larger homes can also make you and your family feel more isolated and disconnected from one another.
Larger homes are often in less convenient locations unless you have a huge budget. You'll want to think about how important location is to you if you're deciding how big of a home to buy.
If you're thinking about upsizing, check out this article about the cost of a 4-bedroom, 3-bathroom home.
Now let's take a look at the good and the bad when it comes to smaller home living. Most obviously, smaller homes can be cheaper to buy and maintain. It can also make you more mindful about buying too much stuff and reduces how much time you spend cleaning and doing upkeep.
Smaller houses can also encourage the family to spend more time together.
However, there's also a darker side to small house living. You might find that you end up spending more money than you would buying furniture that fit into small rooms or otherwise adapting your belongings to the space. It's also easier for smaller spaces to look cluttered and it can be difficult to entertain guests.
If the house you buy is way too small for your household, you'll likely find that the frustration this creates wasn't worth the cost savings.
There are a lot of different considerations to take into account when you are deciding about the perfect house size for you. For this reason, it can be a good idea to start pondering these types of questions some time before you start the actual house hunt. That way, when the ideal house comes on the market you'll be ready to be the first one to make an offer!
Is it time for you to find your new home in Sioux Falls? If so, contact us today!
How can you tell a house that piques your interest is good if you're house hunting? Simple: ask your realtor!
Purchasing a home is a significant financial investment. As an investment that could last for years, it is critical to be well-informed in order to make the best decision.
Even if you have the assistance of a real estate agent, you should ensure that you are doing your thorough research by having questions to ask your realtor when buying your home. Your relationship with your real estate agent could indeed make the home-buying process go more seamlessly if they guarantee your needs are met.
Here are seven top questions to ask your realtor before selecting them and while working with them.
While this may appear to be a simple task, selecting a neighborhood can be difficult. It's also perplexing, intimidating, and stressful. But this doesn't have to be that way!
It's simple to find the ideal location if you know what to look for. Here are a few things to think about, among others:
It can be difficult to find a location that meets all of your requirements. But your real estate agent has a better knowledge of your neighborhood. As a result, they can direct you to areas with most of the items on your wish list.
Without it, you might miss out on a great neighborhood you've never heard of or thought you'd like.
Sometimes, buyers and sellers need to be cautious when purchasing or selling a home. Things don't always add up.
When a buyer accepts the seller's offer, both parties must sign a legal and binding contract requiring them to execute the transaction. So, it would help if you determined how binding the agreement will be.
Some contracts have contingencies that allow buyers or sellers to walk away from the deal without penalty. Thus, it would be best to ask a realtor to guide you as you negotiate.
Remember, having too many contingencies can turn off sellers. Therefore, you need to ask your realtor how to strike the right balance.
If you purchase a home within a homeowners association, you will receive the HOA's financial documents containing essential information regarding reserve funds, among other details.
These documents could be hundreds of pages long and overwhelming to go through. It is thus essential you ask your real estate agent about HOA payments.
Is payment made periodically or a one-time fee?
Since HOA payments may affect your monthly housing expenses, you also need to know whether they may go up soon. It would be best to determine whether you can afford the costs together with your mortgage before purchasing a home.
Before you decide to make an offer, consider asking your realtor about the property sale history.
Other questions that should follow include:
For instance, if you find that the property has been on and off the market for years, it could indicate a problem with the home. It could also be about the location or the neighborhood.
Better, if a house has struggled to sell, it means you have better bargaining power.
A real estate agent is likely to point out issues you may overlook.
For instance, a realtor can determine whether the home price is reasonable by comparing it with about ten recently sold properties in the surrounding. A realtor may also help you know what is happening in the neighborhood that may affect home prices.
If you are looking for a realtor with experience, you must consider their expertise in a particular locale. Don't overlook the type of property the agent has sold in the past. An agent specializing in commercial property may not be suitable for a residential home sale.
Also, agent experience will help understand best the present and future needs regarding the neighborhood. For instance, if you have kids, you are likely looking for a community where you will find the best schools.
Real estate agents are experts in recognizing trends in the real estate market. They will take note of its growth and decline.
Ask your agent to explain whether the neighborhood where you consider purchasing a property is experiencing growth or decline.
You may assume that a neighborhood with many boarded homes means growth. However, a realtor may be able to note subtle clues like street maintenance and small businesses that may indicate growth.
A good realtor should tell whether you are making a sound investment based on what is happening in the neighborhood.
Though the federal fair housing laws prohibit realtors from making any comments regarding neighborhood demographics, your agent can still advise you regarding the value of the investment.
Having the right questions to ask your realtor will help you walk through the buying process. Your realtor should explain all your questions regarding the suitability of the neighborhood, possible drawbacks, and whether the price being offered is reasonable.
Are you purchasing or selling a home in Sioux Falls, South Dakota? Aaron Rietsema is at your disposal.
Since 2005, Aaron has been offering high-quality real estate services in the Sioux Falls area. He has been named a Local Best for the past nine years and a Local Best Realtor for the last three.
Contact Aaron today to book an appointment.