As a prospective homeowner, there is a lot for you to consider before you buy a home. It is likely that you already have a dream home in mind. You might know the neighborhood that you want it to be in, or how you want the structure to look. You may already have a checklist of all the features that you need the house to have. The more elaborate your checklist, the more expensive your dream home will be.
If you want to buy a home in Charlottesville, VA, you might be wondering how much you’ll need to save up. It all depends on you, and the type of home that you’re looking at buying. There are quite a few things that could make the house you want to buy expensive. The more expensive it is, the more you will need to save.
This article will explain the cost of the average home in Charlottesville, VA and how much you might need to save to buy one.
What Are Property Values Like in Charlottesville, VA?
For those looking to buy a home in this city, they have to know how much they’d be likely to spend. The median price for a home is about $355,000. Of course, there will also be plenty of homes below and above this price.
For instance, over 50% of homes available in Charlottesville cost between $250,000 and $500,000. As prices go higher or lower than that range, the number of available homes decreases. But even if you are looking for seven figure homes, you will find a good selection in Charlottesville.
You’ll also find many three-bedroom homes here, followed by two-bedroom houses. If you need even more space, then four-bedroom houses make up 16% of homes in the city.
Since the year 2000, homes in this city have appreciated 134.5%. This is about 4% every year, on average. This is something to consider for those who are planning to buy a home for investment purposes. Over the last ten years alone, the appreciation rate has been about 40%. This is in the top 30% in the nation.
Speaking of investments, you may want to buy a home as a rental property. Charlottesville, VA, is a great location to consider if that is the case. The average rent goes for about $1,700 every month, and about 60% of residents are renters.
How Much Money Should I Save to Buy a Home in Charlottesville, VA?
If you have the cash to buy a home, it is always best to do it outright. This is not an option for most people, which is why they turn to their banks to finance the sale. By getting a mortgage, most people can become homeowners.
You will always need to pay a down payment on the house, even with a mortgage. The percentage of the total house price for the down payment varies. Many people use 20% as a rule of thumb. It can be lower than this, but it is unlikely to be higher. This makes it a good benchmark to use. If the house you decide to buy costs $500,000, you will have to have $100,000 saved up.
To always be on the safe side, ensure you have 20% of the total put aside. If you manage to get a smaller percentage on your down payment, that’s a definite bonus. You can put this extra cash to use if needed, especially if you might need to make some repairs.
What Factors Can Make a Home More Expensive in Charlottesville, VA?
When looking for a home in Charlottesville, VA, some things can make a house more expensive. You should have these in mind and keep your wallet at the ready. Especially if you want a five-bedroom estate or something like that!
Just because you can afford a house that large doesn’t mean that it is a good idea. Look at your monthly income and make sure that the mortgage won’t take too much of a hit on that. You are going to be paying it off for decades. You should go for a mortgage that is comfortable and won’t leave a serious dent each month.
Here are the factors which increase the value of a home:
1. The size. This might be the most important consideration when looking for a home. The square footage of the property has a large effect on how much it will cost. This doesn’t refer to the house alone, but the entire lot. There are homes in Charlottesville, VA, that belong to golf communities or have farm space. All that extra land is sure to drive up the listing price. If this is what you want, make sure that you prepare for it. Homes like these are beautiful!
2. The neighborhood. Charlottesville, VA, is a city and there are many neighborhoods within it. These areas can differ quite a bit and this can show on the average price for homes. Ivy is one of the more expensive neighborhoods in Charlottesville. In fact, it is one of the more expensive neighborhoods in the country. The median price for a home here is $790,000. This shows how important it is to select a neighborhood wisely.
3. The year of construction. Simply put, the newer a home, the more expensive it is likely to be. The reason for this is rather straightforward. A lot of things in the house will be less likely to break down! Some of the most important parts of a home are the most expensive to fix. This includes the plumbing, wiring, and roof. If any of these get damaged, it will cost a lot of money to fix. A newer house is a sort of guarantee that these parts of the structure will last longer. Buying an older house for cheaper saves you some money you might need for fixes.
To summarize everything, you should aim for a house which you can afford comfortably. The amount of usable space, the area, and how old the house is, affect the price.
Whatever the price might be, have 20% of it on the ready. This will help avoid any disappointments you might encounter. Nobody wants to miss out on the house of their dreams.
Before you make any of these steps, you need to find the house of your dreams. If Charlottesville, VA, is your destination, Pam Dent, Realtor®, is the one. She’ll find you the best options to fit your needs. Call her at 434-960-0161 to get started now!