|
Start looking at houses
← Back: Learn
about the suburb penalty Next:
Get the disclosure →
If you engaged a
real estate agent, their job will be to find houses
that meet your criteria (size, location, price), but don't let
that stop you from doing your own search. After all, you
know what you like better than your agent does. Find the
online MLS or home-search site in your area and use it.
Basic advice
Look at lots of houses! You're not shopping
for socks. You're going to be pretty much married
to this house. I can't stress enough that you should take
your time with your decision. When home-shopping, the
wrong question to ask yourself is, "Is this house acceptable to
me/us?" Instead, find a house that you really love,
one that gets you excited when you imagine living there and
think of the possibilities.
You're unlikely to find a home you love right away, so unless
you find your dream home sooner, give yourself at least three
months to find it. The extra time dramatically
increases your chances of success. And if you can't find
something you love after three months, you can at least know
that it wasn't for lack of trying, and you won't beat yourself
up later for not trying harder. If you can't find
something perfect after three months, then at that point you can
settle for a house that's merely acceptable.
Take a camera to every house you visit and take lots of
pictures (the first one being the house address, so you know
for sure later which house the following pictures are from).
After each visit write down everything you like and dislike
about the house, and the neighborhood, in as much detail as you
can. You're going to be looking at lots of houses, and if
you don't take pictures and notes then they're all going to
start to blur together.
Don't discount a home because you don't like superficial
things like the paint color or flooring. Once the
home is yours, you can do anything you want to it. Paint
is relatively cheap. Redoing the flooring is a little
pricier, but not out of reach for most. Consider the
home's potential, not its present state.
Check out the neighborhood (schools, demographics, crime,
etc.) with a site like City
Data. And check out how walkable the area is
with Walk
Score.
Once you've found the home you want, visit the neighborhood
several times, day and night, weekday and weekend.
Much of your comfort is going to come from the neighborhood
itself and not just the house, so make sure you like the area
as well as the property.
Meet the neighbors. Knock on at least a couple of
doors, explain that you're thinking of moving into the
neighborhood, and ask what's good and bad about the
neighborhood.
Remember: You probably wouldn't marry someone after a
first date, and you shouldn't jump into a home-buying decision
that quickly either!
Is the property part of a Homeowners Association?
Certain properties are governed
by a homeowners association (HOA), which
makes certain rules, charges certain fees (perhaps
$200-400/mo.), and sometimes provides some actual
services. For example, in a condo-type property, HOA fees
pay for maintenance for to things like the common roof or common
foundation. HOA fees add to the cost of ownership, but if
the HOA provides some maintenance then that offsets some of the
maintenance cost you'd have otherwise. HOA rules limit
what you can do with your property. For a standalone
house, HOA's are only really a benefit if you like the fact that
all your neighbors will be subject to the same rules (e.g., no
pink flamingoes on the lawn). With all that in mind,
here's your HOA strategy:
- Find out if the property
you're looking at is part of an HOA. If it's
a condo or in a planned/gated community then it probably is,
otherwise it's probably not. Ask your agent (or if you
don't have one, then ask the seller's agent). If
there's no HOA, then skip the rest of this section and go on
to the next page.
- Contact the HOA and get a
copy of their rules. They might be available
on the HOA's website. You don't want to buy the
property and then discover that something you'd counted on
is prohibited. And even the rules don't disallow your
planned use, remember that HOA rules can change in the
future. Common rules regulate exterior paint color,
and what kind of pets you can have. Many HOA's are
eco-hostile, banning line-drying
of clothes, low-water lawnscapes, compost piles, and
solar panels; and requiring chemical fertilizers use of a
sprinkler system. By the way, some HOA rules are
called covenants.
- Find out how much the
fees are. Budget for them when figuring
your monthly payment and comparing
the cost of owning to renting. Remember that
fees can go up in the future.
|
Amount spent so far.
Red
items apply towards the purchase. Amounts are
typical, not exact.
|
|
$40
|
Credit Check
|
To the Lender
|
|
$40
|
Total
|
← Back: Learn
about the suburb penalty Next:
Get the disclosure →
Last update: October 2013
|
