Misc Tips for buying a home (in Philly)

Neighborhood

• Parking is kind of a big deal. If you can afford a home with a spot, it’s definitely worth a bit more money. If you can get an attached and covered garage, that’s worth A LOT of money.
• If the neighborhood isn’t interesting and walkable, then you’re playing Philly taxes and dealing with Philly nonsense without any of the benefits
• If the neighborhood is SUPER interesting and walkable (eg 16th and Walnut), you’ll eventually get sick of the crowds
• In general, there’s an inverse correlation between busy neighborhoods and friendly neighbors (e.g. 16th and Walnut = you’re gonna have lousy neighbors. 16th and Reed = I’ve never been there, but you will likely have friendly neighbors)
• West Philly is often overlooked, but if you can find a pleasant and walkable neighborhood, you’ll likely have more space, more trees, and more sunshine than the rest of Philly
• If you’re buying in a neighborhood that’s specifically catering to the 20-something crowd (lots of gyms and coffee shops and bars), you might outgrow the neighborhood before your home is paid off
• Access to transit and/ or highways is a big deal too! If you can avoid driving to work (and take transit) and if you can avoid driving downtown for date night (and take transit), your life will be better
• Philly has a very limited number of lush, expansive green spaces - Fairmount, FDR, Schuylkill, etc. If you are in walking distance to something like that, your life will be better

Kids

• Schools are a big deal if you’re considering having children. There are - I hate to say it but it’s true - 10 to 20 great primary schools in Philly and maybe 5 great high schools (outside of special admits). If this is important to you, do your homework before buying.
• Living in a neighborhood with other kids is clutch. And living around kid-friendly spaces (playgrounds and libraries and indoor spaces to play and run around) is important. Use this as one of your search parameters when choosing a neighborhood.

Mortgage

• All things being equal, tiny mortgage lenders are much easier to deal with than big banks. Banks are a pain in the ass and they move slow and they change staff all the time and each time there’s a weird discrepancy with your mortgage statement, it takes 45 minutes of phone calls and transfers to get to the right person. If you can just text your lender and have them fix things, your life will be easier.
• That said, big banks might offer a better rate, and even a difference of 5% vs 5.25% makes a big difference when you’re spending half a million dollars over 30 years
• If you do go with a big bank, find the one where the majority of your savings is and ask about discounts. We got $20K in discounts from BofA because we were first time buyers and because we had savings there. This is worth the annoyance of dealing with BofA
• Tax abatement is slightly awful (it decreases the amount of money going to public schools) but can save you tens of thousands of dollars over time. So… maybe buy a home under abatement and then donate one weekend a month to some sort of community volunteering?

House

• Owning a home (and moving into your home) is a pain in the ass. You’ll need to hang a dozen shelves and organize the kitchen and build 75 different Ikea items, etc. All things being equal, you don’t want to also be repairing the stairs and replacing a water heater, etc. If you can get a house that’s 100% functional and updated, that’s a big deal.
• If you can get a new(ish) home, that’s even more awesome. You’ll appreciate the updated insulation and water heater and HVAC system.
• Of course you can always sell a home or rent it out if you decide to move, but closing costs are a lot of money. And house prices (duh) fluctuate. So, you can easily lose money if you sell too soon. The advice I got was to only buy a home you could stay in for ten years or longer. This gives you time to decide if it’s your forever home.
• Space / outdoor space. Space is a luxury in a place like Philadelphia. Buy a home you can grow into. Outdoor space to grill or garden or saw a piece of wood is really nice!
• Basements. Finished basement is a game changer. This is a must IMHO