Will that first time home deliver the right ROI?

We all know the feeling. You can instantly picture your friends in the dining room, and far away family finally coming to visit. That couch you’ve been looking at? It’s made to sit under that window. The reality is: your first time home should feel exactly right for you.

And with the understanding of a few, key factors, you can ensure it’s right for your future bank account, too.

Meet the 3 L’s: light, layout, and location

Let’s start with light: often the most important attribute to a buyer, and not something that can be improved post-purchase. An asset’s light is dependent on the amount of natural light present, as well as floor height and view considerations such as water or cityscapes. 
Ask yourself: is there light in most, if not all, rooms? What is my view like? Is it clear of new developments that would block my line of sight?

Layout: as you walk throughout your home, the space should feel functional, and flow from one room to another without requiring you to repeatedly turn around or backtrack. Secondly, it should have storage and closets in the right locations. While layout can many times be improved (i.e., convert an alcove studio into a 1BR), and add tremendous value to the unit, some attributes of a layout are inflexible (i.e., can’t move the kitchen due to the gas line). Ask yourself: does the flow feel functional and natural? Are the essentials in the right locations? If the layout can be improved, are there barriers to doing so?

Location: the number one fundamental in real estate is location, location, location. There are many external factors that contribute to what is considered a “good” location, some of which are personal and others fundamental to the broader market. Take our first-time investor quiz to find out how to evaluate your location based on your key needs and goals.

Found a home you love? Score its potential like a pro with our fundamentals checklist.