A_House_Paper

A New House My decision for buying a new house XECO 212 Principals of economics There are many thing people look for when they buy a house. Some look for where it’s near and if it’s in a good neighborhood. Other people look for what stores or essentials are near the home such as food stores and laundry mats. Some people also look for what style the house is such as ranch or town home. When I go to buy a new house I look for what the yard looks like if there is a yard, how the house looks and what the house includes. I want my house to have a nice size yard if there is one and it looks clean. I want to be able to plant flowers and a garden of some sort. The back yard needs to have room to have parties and invite friends and family over for dinners outside. When I look at the yard I don’t want to have chips in the sidewalk and parts of the lawn missing. I am not going to worry about stick or weeds in the yard because that is going to happen no matter what and it’s not that hard to fix. With the way the economics are these days I don’t think you can get a good size yard without putting up a lot of money. There are a lot of people selling their houses and that’s because they can’t afford them. Some of the houses on the market right now have nice size yards with plenty of back yard space. But the property cost a lot just to buy it. And for me I don’t have the money to buy a big yard. So money would be the only thing stopping me from getting the yard I want. When I buy a house I want a house that is not falling apart nor has leaks. The house has to be brick if it’s not then I want the siding to be a neutral color like white or tan color. I don’t want the roof to be missing shingles or have them peeling off. The siding on the side of the house should not be bent or have dents in it. I don’t want to have the paint peeling on the windows or anywhere on the house. When I look at the house I want it to be nice and inviting. I want it to be clean with neat lines and looks good from the sidewalk. I want it to draw people to it and make them feel welcome to come to my house. On the inside of a house I look for a big kitchen because I like to cook. I look for a big eating area and a nice size living room because I like to have parties and family come over for dinner and such. It has to have the other basic things like a nice size bathroom and bedroom. In my kitchen I want it to have a big space to cook food and prepare it on. The kitchen has to have tile, hardwood or something other than carpet. That way when u drop something or spill while cooking it doesn’t stain the floor. The living room and the rest of the house except the bathroom have to be carpet. In the living room I want to be able to fit a couch, coffee table and a chair maybe even a love seat. Along with a TV and its stand and a bookshelf to hold book and pictures. The only thing that would affect me on what it looks like on the inside is how much money I have to spend on the house. If I want a bigger house with more space then I have to spend more money to get it. The other part that might affect my judgment is how big the land is and what can be build on that land. Some plots of land are small so u can only build a one bedroom house. Others are zoned to only have a one floor house on it and it has to be a certain square feet. One major decision in my judgment on buying a house is how the market is. If the market is low then the houses are being sold cheap because the market is flooded with them and if the market is high then the houses are going to be a lot of money. So for me it’s better to wait until the market is low and it’s a buyer’s market then when it’s high and it’s a sellers market. There will be many of them to choose from and I can save some money. One marginal benefit I am really looking for when buying a house is an updated kitchen or an updated bathroom. There might be tons of one bedroom houses on the market and I see one that has a new updated kitchen and the rest have old ones. For example in the new house it has a bigger stove with six burners and the other ones have a four burner stove. I may not use all the burners in the updated one but if I get more for the same cost as the older house. I would pick the new updated one and get the better deal. The strength of the market can also affect the prices of the house also. When it’s a buyer’s market and the market is high it makes it easier for people to buy updated houses cheaper because the sellers are willing to take a cost as long as the house is sold. So if the economy is down then that means the prices on the houses go up and the benefits cost more. The updated kitchen will cost more than the houses with the old kitchens. There might be a lot of houses on the market but if no one has money to buy them then they just sit there and the market is flooded with houses no one can buy. But that’s not always bad. Some people might be willing to sell their house so they have money to buy other things they would take any price as long as it is sold. In buying a house the marginal cost factors in a lot. When you buy a one bedroom house it might have one basic cost that is equal to all one bedroom houses. If you want to buy a house with two bedrooms it is going to cost more than the basic cost for the one bedroom house. So what that means is that you have to put in additional inputs (money) to get the bigger output (two bedroom house). Along with that u have to put the houses in a sub group of the benefits u will be getting. You might get a one bedroom house that has a new kitchen but if it costs the same as a two bedroom with an old kitchen. You have to decide what will benefit u more but cost less. You might get more storage with the two bedrooms but it might be at the cost of a new kitchen. In my house I would rather get the one bedroom house that has a new kitchen then the house that has two bedrooms. I may have less room and storage but for me that is a cost I am willing to take. For me the better kitchen would mean more room to cook and I can invite friends and family over for dinner and parties. So when buying a house there are a lot of things to look at. Such as what the prices are and what is included in the house such as if there is a new kitchen or not or wither it’s a one bedroom house or a two bedroom house. Other people may look for what style the house is and what the house is near. When I am looking to buy my house I look for if there is a yard and what it looks like, what the house looks like and what the inside of the house has. It’s also very good to look at where the houses are on the market and wither the economy is up or down. It might be better to wait until the market is better and the houses are cheaper. You also have to look at what the costs are if you want a better house and what benefits you might have to give up to get that better house. References page http://www.econmodel.com/classic/terms/mc.htm http://www.investopedia.com/study-guide/cfa-exam/level-1/microeconomics/cfa5.asp http://sorrel.humboldt.edu/~economic/econ104/marginal/