Tips for the first time homebuyer (MCM or otherwise)

Having purchased our home six months ago, I've had a chance to reflect on what went well and what I would have done differently. We love our home and it's been a great opportunity for us to learn how to maintain property, take care of a yard, make a major investment, and design to our heart's content. But we have decided this is likely a starter home for us and having identified a few things we want in the long term, I share with you my tips for homebuying - in all regions of the US, though there are a few DMV specific thoughts:

1. Find the right location for YOU. You have likely heard the old adage "location, location, location" when buying at property. This often refers to proximity to shops, restaurants, or the nearest big city and the impact of that on a home's value. I agree that these things are incredibly important but I don't think there's enough guidance out there about how to choose a location. Ryan and I began our search knowing we would be in the DMV for at least a few more years. We focused on Maryland, believing this area to be more urban with access to the metro and cute shops. This was true... in certain areas. However, we struggled to find a house that fit our needs within our budget. So we navigated way up north, about 40 minutes, to areas like Wheaton and Colesville. These are lovely areas but they are at least a mile from the metro and the neighborhoods are positioned just off major thoroughfares. When we looked in Virginia, this was also the case, as we couldn't afford Arlington and were concerned about flooding in Alexandria. All that being said, we ended up in a neighborhood we love, but is not very walkable to the metro or to the nearby shops and downtown area of Falls Church. We didn't really do our due diligence on this and when moving from city to suburb, one might just assume they already know the area. But what's it like day to day? Is it walkable? Can one bike around without being in danger from cars whizzing by? Is there a cute area close by with a bookstore and coffee shop? These are things that I realize now are very important to me. My suggestion is to rent in the neighborhood or a nearby area if you are considering buying, for at least a month or two. This isn't always possible if you have pets, kids, or need to buy asap but it's something we could have and should have done.

2. Determine your non-negotiables and keep the list short. This was something we were pretty good at but over time, our non-negotiables shifted. We thought we had to buy in Maryland and then we expanded our search to Virginia and DC due to our interest in mid-centuries, which helped us find a house. There were other things, though, that we didn't budge on - we needed a yard with a fence, we wanted at least three bedrooms and two bathrooms, and we did not want to purchase a home that needed a major renovation. We also wanted to be in an area with a community so we could make new friends. It may seem obvious but it's important to be very clear with your real estate agent on these non-negotiables so that time isn't wasted (yours and theirs) on homes you would never buy.

3. Figure out what you can afford and then look for a house that is listed at least $75K below that. There are so many additional costs that you may or may not be aware of. First, the house may escalate quite a bit above the asking price so you should look at houses well below the max of what you can afford. There are many additional costs that you will need to pay up front: inspection, closing costs, insurance, and capital gains if you are taking money out of a stock portfolio. Then you move in... and oh my goodness. You need close to a $20,000 cushion for the maintenance, including keeping your car running and gassed (this was new for us!), pest control, tree health, lawn mowing, leaf blowing, gutter cleaning, purchasing about 300 items from Home Depot, buying furniture, and of course if you want to make any renovations or cosmetic updates. You should be prepared for things to go wrong - plumbing, insects, air conditioning. And inevitably things will break. Our air conditioning stopped working on day one in the deathly humid July summer and it was a nightmare, plus a $500 expense.

4. Ignore the frenzy. I repeat. IGNORE THE FRENZY. Home buying has been a competitive process for a couple of years now and housing prices are at an all time high. This can make you feel pressured to make a decision, like you need to settle, and that you need to overpay. Do not be fooled. Choose the right house for you. If you lose out on that house, another will come along. Believe in the process and trust yourself.

Good luck out there!