Real Estate: Tips for Buyer's Success
Any purchase offer you make should be contingent upon your approval of a qualified home inspector's report, even when buying a new or almost new home. Friends, family, or your Realtor may be able to refer you to a good inspector, or you can contact the Better Business Bureau for a list. Even if your lender does not require it, you may want to consider conducting a full land survey: property line disputes could potentially cost you thousands down the road, and are typically not covered by title insurance. Ensure that your notary or property lawyer obtains and provides for you a land title search on the property, to ensure that the seller has clear title to the property they are selling, but also to understand any easements and rights-of-way imposed by utility companies or the local municipality.
Always get an inspection.
Use a REALTOR.
As a buyer, it usually costs nothing to hire a real estate professional to help you find and purchase a home - your Realtor will likely get a portion of the commission the seller pays to his Realtor. When choosing an agent, get referrals from friends, relatives, and co-workers, and then interview as many agents as possible. Pick an agent that works in the neighborhoods you're interested in. Listen to your agent, but make your own decision.
Let your agent know what you expect.
It's up to you to tell your agent what you want and how you want to be involved in the home search process. Some buyers prefer their agents to handpick properties for their consideration; others want to receive the hotsheets on a daily basis so they can comb through the new listings themselves. Some realtors have a listing hosting and ranking system for your comments to the listings to help them calibrate their search for the most suitable listings. You should listen to your Realtor's advice, but always remember that you're the boss. And speaking of bosses, it's a good idea for ALL decision-makers of the purchase (if you are buying with your spouse or others) to visit the properties your Realtor shows you.
If it's not located in a neighborhood you like, your new house will never feel like home no matter how nice it is. There are several factors that go into making a "good" neighborhood for most people. It should be safe, close to things that are important to you, and should offer the services you depend on, such as healthcare and convenient shopping. Ambiance and curb appeal may be particularly important to you. Whatever your criteria, once you have a better idea of the areas you are interested in, find out as much as you can about each area's demographics, crime rate, schools, traffic, etc. Check out the county and state records for this information, or you can use Yahoo!'s "Get Local" online service. You can even try the local Chambers of Commerce, but bear in mind that they are in the business of attracting new residents to their neighborhood.
Identify suitable neighborhoods.
Determine your housing needs.
How long do you intend to live in your new home? Will you be starting or adding to your family? Will you intend to age in place and will the home be suitable for your mobility? Do you have any special requirements such as proximity to stores, public transportation, recreation facilities, etc.? Is there adequate parking for your vehicle(s)? These are the sort of things you should consider when deciding what kind of housing you will need - not just now, but also five years from now. Remember, if you intend on moving again relatively soon, you should get a shorter term when choosing your mortgage.
Don't buy the first house you see.
If you like the first house you see, don't be tempted to make an offer right away. You should look at least a few other houses first so you can get an idea of the homes that are available in your price range. If you tend to be an emotional decision maker, consider making a matrix of what your key criteria are, how important they are compared to each other, and how each property stacks up against your criteria. This can help you more objectively assess how the properties should rank.
Don't buy a house that will be difficult to resell.
Normally, most of a property's value is not in the house, it's in the land. You would do well to heed the old adage of buying the worst house on the best street, not the best house on the worst street. If you buy a house that is overdeveloped compared to neighboring houses, you may think you're getting a great deal when you buy it, but you will probably have a hard time getting back what you paid for it when it's time to sell.
This is especially important during any kind of contract negotiation. Verbal commitments are hard to prove after the fact, so make sure that all the small details are added to the purchase contract. If the seller says you can have the curtains, make sure the contract says so!
Get everything in writing.
Don't buy your new home until you have sold your current home.
This is generally sound advice unless you live in an extremely hot market and your Realtor is sure you'll be able to sell your home quickly. Timing is crucial, so start working with your agent to find a new home as soon as yours is listed. With a little bit of luck, the day you accept an offer on your home, you'll be able to make an offer on a new home and close both deals on the same day. At worst, you may have to live in a rental for a couple of months, but most people agree that moving twice is preferable to being stuck with two mortgage payments and having to try to get bridge financing! Another factor to consider is that in a hot market, you may be competing with other offers on the home you wish to buy. Having your offer not subject to the sale of your home will provide it with a significant advantage over other offers that have that kind of subject condition.
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