RealtyNET Lodes - Buyer Tips

Do you want the hustle and bustle of an urban setting, where you can walk to restaurants and shops and public transportation, or are the suburbs or exurbs more your style? You probably have an idea, but it’s always a good idea to drive around and look at different areas to get a feel for different neighborhoods. If you have kids, the school district where you’ll live will be very important. Many people start with several school districts that they like and narrow their search from there.

Once you’ve narrowed your location down to an area or areas, you’ll need to think about what kind of house you’re looking for – old or new, updated or fixer upper, single family or condo? Do you need a single story or do you want two or more stories? You can get more living space for the money with a split level, but you give up some basement space.

Determine how many bedrooms you want versus how many you need. Do the same with bathrooms. Do you need a separate family room? Formal dining room? How about a finished basement?

Do you need a garage? If so, how big does it need to be? Attached or detached?

Determine the importance each of these items and whether or not it could keep you from buying a home. That way you won’t waste your time looking at houses that simply won’t work for you.

Once you’ve found an area that suits you, ask your realtor about trends in the community – is it a desirable area where homes sell quickly once they go on the market or do they tend to sit? No matter how far in the future you think it may be, you need to think about re-sale when you’re buying.

If you’re a first time home buyer, all of this can seem confusing. This is where your agent can really help you. Your agent has worked with first time home buyers before and can help you with your questions along the way.

As a buyer, it’s best to have a “Buyers Agency” agreement with your agent. Your Realtor can show you the form. You’ll want to know what kind of disclosures and inspections are typical in your area and who usually pays for what, and how much they cost. What about a survey and title work? Are you in a state that closes at a law office or a title company?

You’ll also want to talk to a lender early in the process so you’ll have a clear idea of what you can afford. That way you’ll be looking at houses that you can afford. Your lender can provide you with a pre-qualification or pre-approval letter which can include with a contract when you make an offer on a house. This shows the sellers that you are a serious buyer. Keep in mind that after you are pre-approved/pre-qualified, it’s probably not a good idea to make a major purchase, such as a car – this will affect the information that the lender has given you. If you can help it, don’t change jobs during this process. Job consistency is important to lenders. Your lender will ask for documentation from you – make sure you get them what they need by the time they tell you they need it.

Keep in mind that there are many details involved in the home buying process and it’s not uncommon to hit a few snags along the way – don’t despair! Your agent is there to help you work through any issues that arise. No home is perfect and your home inspection will probably show some defects with the house or items that need attention. This is something you’ll work out with the seller, with your agent’s help.

You’ll need to line up insurance for your home – most contracts have a deadline for when you can get out of a contract because you can’t get insurance for it – don’t put it off! Make sure you are clear on how much time you have. As you get closer to closing, don’t forget to arrange to have utilities switched over to your name. You’ll also need to discontinue services at your present address.

Very close to closing, you’ll have a final walk-through of your new home –your agent will set it up with the listing agent. This is a chance for you to “walk through” the home after the sellers have moved, but before closing. You can make sure there is no damage to the home – gouges in the floor, holes in the wall, that everything the sellers have agreed to leave is still there – refrigerator, fireplace tools, etc. It is NOT a home inspection – it’s merely making sure that the home is the way you’ve agreed to buy it.

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