Nervous About Buying Your First Home? Tips for NOLA Newbies

Buying your first home in a real estate market like New Orleans is exciting and may seem daunting at the same time. You'll have to navigate what you can change to keep the historical exterior intact, avoid flood zones and decide how immersed you want to be in the rich local culture. Living in NOLA is like stepping into another world filled with French, Spanish and African influences. The city and outlying areas have a distinct rhythm that gets into your veins and makes you want to buy your first home in a city you love. 

While owning your own home has many benefits, it’s natural to be nervous. With a significant purchase comes the potential for pitfalls. Fortunately, paying attention to a few key elements native NOLA residents know can prevent mistakes.

Things to Be Aware of When Buying Your First Home in NOLA

The real estate market in New Orleans offers a world of opportunities for homebuyers. Exploring nearby parks and meeting other locals can familiarize you with different parts of the city. While some things apply to any area, others are specific to the deep south and the city. The following tips serve as your guide to buying your first home in NOLA.

Overcome Low Inventory

You may face low inventory in the most desirable areas when house hunting. New Orleans' government officials developed a Housing Ecosystem Plan to address the shortage over the next 10 years.

Local real estate agents often have a handle on homes getting ready to come on the market, giving you an advantage by placing an early offer. They can also help you navigate asking prices and give you an edge in bidding wars. First-time homebuyers may have additional loans and options available, too. 

Consider Flood Zones

Since the city sits below sea level, it’s crucial to understand how flooding in the area works and its impact on insurance rates. A real estate agent is a good source for determining whether the home is in a flood zone. You can also talk to locals who’ve lived there during major storms to get the best tips for what to expect.

Understand the Property’s History and Any Limitations

Living in an area filled with historical homes can also come with old land easements and restrictions from your homeowner’s association or the city. A title abstract gives you crucial information about any legal issues or rules surrounding a property before you invest. 

It is also beneficial to know what disputes were solved in the past, in case neighbors try to say property lines are different from what they are. 

Ask for an Energy Audit

The summer heat and humidity in New Orleans can raise electricity costs. Before investing in a home, ask for an energy audit to understand how well-insulated the dwelling is and whether you can afford the expenses. 

A home’s energy efficiency often depends on insulation, the type of windows and doors you have and whether there are shade trees on the property. Ventilation is also key in preventing too much moisture from accumulating in your roof or attic, resulting in mold, mildew and water damage impacting your insulation. Compromised insulation can also impact your utility bills. Understanding potential power costs can help you determine if you can afford renovations or should stick with something already refurbished. Discuss these aspects with a professional real estate agent, so that you have a positive experience from the get-go. 

Pay Attention to the Neighborhood

A thriving neighborhood under rehabilitation can increase your new home’s value and make it easier to sell in a few years. Added benefits of owning your own home when revitalization is occurring include having a more pleasant place to live and engaging with the local community. The gorgeous architecture of NOLA homes gives you an opportunity to embrace the history and restore the soul of an older building. 

In the last five years, NOLA's city council passed laws that allow more triplexes and fourplexes. Plans will increase the number of properties available. Some homebuyers may want to buy a larger unit and lease out part of it. 

Choose the Right Area for You

You may have read some of the statistics on crime in NOLA, and it’s given you anxiety about buying a house. The good news is that the city has numerous safe neighborhoods where you can set down roots and have few worries. 

You can search in areas like the Garden District and the French Quarter. Some other places frequently mentioned in online forums and neighborhood groups include Lakeview, Black Pearl and Lakewood. If you're looking to immerse yourself in artistic living, check out the Marigny-Bywater neighborhood, where you'll find music, art, history and culinary experiments to delight a foodie's heart. To streamline the process and put your mind at ease, get a local real estate agent to guide you through the journey. 

Know Your Boundaries

It’s natural to feel drawn to the beautiful old house that needs a little love. However, renovation costs can add up, and you may be limited in what you can change on the exterior of historical places. Discuss your budget and lifestyle with your real estate professional to determine if a rehab project is for you or if you should buy a restored home. 

Replacing rusted ironwork may require craftspeople who have specialized knowledge and can make changes accordingly. Matching what is already on the facade of a home may cost more than buying something from your local home improvement store. 

Embrace the Fun Side of NOLA

Buying a home in NOLA may seem overwhelming at first. First-time homebuyers can benefit by enlisting the help of experts and paying attention to what locals say about the area. Reach out to a real estate agent to ensure you get the home you want and have the input to weigh all factors before investing your hard-earned money in a significant investment.