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There are many factors to consider when it's time to find a new home. This includes balancing preferences, finances, and deciding whether to buy or rent.
What’s the best way to approach a home search? These logical house-hunting tips for first-time buyers and renters highlight practical steps that help simplify the process.
Set Realistic Housing Goals: Buying vs. Renting
Sometimes, personal finances don’t align with desired housing preferences. It may feel like it's the right time to buy instead of renting for another year, but buying a home might be out of reach financially. Setting realistic housing goals is important for military families when they’re deciding between buying and renting their next house.
Determine the Property’s Must-Haves
Regardless of the decision to buy or rent a home, it's crucial to narrow down what the most important features are for service members and their families.
There are lifestyle factors to consider. For instance, medical concerns may drive the need for a single-story home, some may be willing to forgo a four-bedroom house if there’s a large flex space, a short commute could provide more time with the family, or the budget may drive all other factors.
Establish a Budget Before Buying or Renting
The goal for many military families is to live within their means and not go into debt for everyday expenses. However, this is often problematic given the gap between take-home pay and the cost of living in an expensive location.
Taking these factors into account and setting a working budget are important steps in the house-hunting process. This includes understanding the buying power of the current Basic Allowance for Housing at the next duty station.
While BAH is a large factor, service members should think beyond this income to manage other financial goals, like retirement savings. Decide whether to pay utilities and rent within the government allowance, or if it's okay to pay some expenses out of pocket.
Below are some factors to consider in the home buying and renting budget.
Basic Allowance for Housing
Each year, the government decides on a budget for housing costs. To find the current BAH rate, use a BAH calculator. Knowing the duty station’s BAH sets a baseline for determining an affordable rent or mortgage payment.
Cost of Living Allowance
Consult a CONUS COLA Calculator to learn if the next PCS destination offers additional funds to help pay for the high cost of living in the area. Installations in states such as California, Hawaii, and New York often qualify.
The Cost of Utilities
Utilities can range anywhere from $200 to $500 or more a month. Before committing to a home, do a quick search of the average costs of electricity, gas, water, sewer, and trash/recycling pickup in the neighborhood.
Spousal or Miscellaneous Income
Spousal income or other consistent money can be included in the budget, like child support or an inheritance.
Commuting Costs
Living in a less expensive home farther from base could cost more than living closer to base and paying less for fuel or public transportation, or it could save money. It's a tricky calculation, especially when factoring in quality of life markers.
Homeowner Association Fees
The right house might come along, but HOA fees or extra fees for on-site apartment amenities can change overall budgeting plans. Both can be pricey, depending on the community.
How can I buy a house? Learn more about budgeting for a military lifestyle:
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Research the Area
Creating a budget can be time-consuming, but it’s worthwhile in the long run. The same is true for researching the potential surrounding areas around the new home. Factors that affect safety, comfort, or future property values for homeowners are a priority.
Neighborhood Safety
The best way to get a feel for a neighborhood's safety is to reach out to the local police department. An inquiry can give an idea of how many calls they receive in the area. These figures help to narrow the location based on local statistics.
Resources to Research Crime Data:
- Crime mapping services such as City Protect
- The National Sex Offender Public website
- The number of homes currently listed for sale (excluding newly built neighborhoods)
- Service members who live in or are familiar with the neighborhood
Local Schools
Parents usually have a series of questions about their children's school options. Important questions include researching class sizes, district ratings, extracurricular activities, and curriculum types.
Use a variety of school ranking websites to create an overall opinion. Start with the state’s Board of Education and the local school district's website. These websites report test scores, student populations, teachers’ education levels, and much more.
School Digger and Niche also serve well for reviews and statistics. If private schools are preferred, then Private School Review is a must-have resource.
Although it's helpful to read the reviews, it’s good to remember that the data used for some school rankings may be outdated or biased, depending on individual experiences.
While a high staff turnover rate can be a red flag, any turnover could indicate that the reviews are based on a school culture that’s no longer there. If there’s interest in a school that doesn’t score a high rating, don’t rule it out immediately. Contact the administration and ask for specifics that are important to your family.
Another resource for military families is the School Liaison Officer. They can help find a school district where the children will thrive. Although this representative may not share personal reviews of the local schools, they can point to which schools most military families choose, especially if the children need specific services.
It’s important to extend the research beyond the schools that your children will attend. The goal is to find a good school district that can support a quality education from preschool through high school. A premium district acts as an attractive selling point when renting or selling the house later.
Convenience to Restaurants and Shopping
A short drive to popular grocery stores, as well as restaurants and retail shopping, helps sell a home. Many people like to have options, and if it’s convenient to drop by a nearby store on the drive home, that is an attractive selling point in a home’s location.
Proximity to the Base or Post
Most service members don’t want to add an hour of commute time to each end of their workday. Not only can living close to work be easier on the service member, but if the family intends to join base activities, shop at the commissary regularly, or use base facilities, then it’s likely best to live nearby.
Nearby Construction
Construction can create a disruptive living environment, and it might affect the value of nearby homes. Research whether new construction or big projects like street widening will negatively affect a future home sale.
Know the Steps to Buying a House
If home ownership seems financially plausible, a quick overview of the steps to buying a house is helpful.
Find a Real Estate Agent
One of the best resources and first steps to buying a house is finding a real estate agent with experience helping military members find a home. Their expertise, especially if they’ve earned a Military Relocation Professional certification, will help buyers avoid critical mistakes. They can share information on the pitfalls of buying sight unseen or overextending finances to secure a home.
Apply for a Loan Prequalification or Loan Preapproval
A loan prequalification gives home buyers an idea of how much they qualify to borrow. The prequalifications are informal, often processed online, and don’t guarantee the final approved amount.
A loan preapproval is a thorough examination of the buyer’s finances. It investigates the borrower’s credit history, debt-to-income ratio, and other important financial factors, like income streams, to determine whether the lender believes the borrower can repay the loan. Preapprovals show home sellers that the buyers are serious about sending a strong offer.
Offers, Inspections, and Negotiations
After obtaining a loan and finding a home that meets all the crucial needs, the buyer's agent will write an offer to the sellers. The sellers may accept the offer and move on, or return it with a counteroffer. Negotiations will begin, and both teams work together to find a solution that works for everyone. It's at this stage that home inspections and appraisals are often conducted.
Closing Day
Once the seller accepts the final offer, all parties will meet, either in person or virtually, to sign the paperwork. This is also the time when the buyers pay closing costs and the keys are exchanged.
Keep Track of Your Favorite Homes
While browsing through ads for homes, keep tabs on which homes capture the family’s attention. MilitaryByOwner allows users to select favorite properties and add them to a saved homes folder. By saving favorite listings, it’s easy to review the houses and revise parameters as the house hunt continues.
Are you buying or renting a home remotely? See these tips on how to reduce risk.
Visit Open Houses and Tour Rentals
Open houses and rental home tours are information-gathering sessions that serve as a way to envision what it would be like to live there. They are also an opportunity to identify flaws and larger problems that may be hidden by photography.
Issues to watch for during open houses and tours:
- Stains can indicate a larger issue, like a leak or previous water damage.
- Cracked or peeling paint can point to cracked walls and a shifting foundation.
- Mold and mildew are big red flags in an open house, and the scent of stronger cleaners like bleach might mean the owner is overcompensating for them.
After touring several houses, review personal notes and look through photos. Note the impressive features, from the home's style to the nearby school district. These preferences help narrow down which listing would be the best fit.
Browse the latest open houses on MilitaryByOwner.
One of the biggest challenges of moving to a new area is learning what it’s really like to live there. This is where social media shines. Connect with the local community or even a service-wide group online to find real-life people with experience in the location you’re headed.
Our site includes many resources designed to support military families during a PCS and home search. Explore our free home-buying guides and additional house-hunting tips below.
By Danielle Keech
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