Purchasing your initial home offers thrilling opportunities, yet it involves several considerations such as cost, size, location, and the amenities offered.
By the end of the fourth quarter in 2023, the U.S. saw an average home sale price of $492,300, as reported by the St. Louis Fed. This figure might not specifically indicate the price of starter homes, but it does show that even entry-level properties are reaching unprecedented costs.
“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.”
In today’s market, the cost of becoming a homeowner is steep, making it challenging for many first-time buyers to afford homes that fit their needs without requiring significant additional investment in maintenance. This underscores the necessity of selecting a starter home that meets your essential needs while keeping maintenance to a minimum.
But what exactly should a starter home include to make it a worthwhile investment? According to real estate professionals Zimbelman and Jared Blumberg, here are the key features to look for.
Completely Operational HVAC Systems
Before finalizing the purchase and signing any documents, ensure that the starter home comes with a fully operational air conditioning and heating system.
“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.”
Functional Electrical and Plumbing Systems
Likewise, regardless of its age, a starter home should possess operational electrical and plumbing systems, as these are expensive to fix or replace. The cost of updating any of these systems in a home can run into several thousand dollars or higher.
“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.
Roof Replacement
Even if the roof isn’t freshly installed, it should not require immediate repair after purchasing the home. The expense of putting in a new roof varies based on local labor costs, the size of your home, and the materials chosen. Bob Vila notes that the cost for a new roof replacement can range approximately from $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.
Adequate Space and 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 entail? Essentially, it involves ensuring your house has sufficient space and rooms to comfortably fit your family’s current and future needs.
“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.”
Appropriate Doors and Windows for Exteriors
Before making a home purchase, ensure to have an inspection completed and conduct a thorough walkthrough, paying special attention to the doors and windows to verify the absence of any apparent problems.
“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.”
Secure Community
Choosing a home isn’t just about the features it offers; the safety of its location is equally important.
“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.”
Additional Desirable Features for Starter Homes
Although it’s not essential for your first home to include these features, having them can increase your home’s value and bring 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.
The price of new appliances ranges from $500 to thousands of dollars each. Therefore, it’s advisable to check if you can acquire essentials such as the refrigerator, oven, and washer and dryer prior to purchasing the property. Negotiation may be required, but attempting to do so is advisable.
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 Protection Plan
“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.”
The necessity of a home warranty largely hinges on the location of your home, as they’re not prevalent in all regions. While it may not be an essential requirement for everyone, it’s worth checking if one is available. However, ensure it provides the coverage you need before making any commitments.
Focus on Your Individual Wants and Needs
In the end, selecting a starter home that aligns with your budget and meets both your present and future requirements is crucial. However, everyone’s circumstances vary, so it’s essential to evaluate your own objectives and situation. From there, compile a list of essential features you need.
“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.”
