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 Home Buying Tips -

 To Save You From Costly Mistakes In Buying A Home

The golden rule when buying a home is to do your research, get a property appraisal, get a feel for the home and area it is in, before you sign any contract.

Once you’ve bought the property, it’s too late to change your mind.

Let’s face it, you don’t want to be kept up all night by noisy neighbors who thrive on all-night parties . . . unless of course it’s at your place! Or….discovering that your section is prone to flooding in the rainy season.  It’s better to check everything, either before making the offer to buy, or making the offer subject to you working through a due diligence process.

Every property deal is different, so this list is by no means complete. But, it is a good starting point and will get you thinking about some of the important issues that need to be considered before buying a property.

Home Buying Tip # 1

Always seek professional advice before signing any contract. You need to be sure that you can finance the purchase, that the property is a good buy, and that the clauses in the contract meet your individual needs.

Home Buying Tip # 2

If you need to take out a mortgage to by the property, then get pre-qualified for a loan before you start looking for a property to buy.

A mortgage lender will want the answers to questions like: 

·         Do you have a steady reliable source of income (usually a job)? Have you been employed
    on a regular basis for the last 2-3 years?

·         Do you have a good credit history of paying your bills?  

·         Do you have any outstanding long-term debts, such as car payments?  

·         Do you have money saved for a down payment?  

·         Do you have the ability to pay a mortgage every month, plus additional costs?  

Remember too, when interest rates are low, you may be best to opt for a fixed rate mortgage where the interest rate is established at its origination and continues unchanged through the life of the loan. 

Home Buying Tip # 3

Decide what features you want in a home before you start looking. Decide what features are high priority and what features you might be prepared to compromise on. Always look for a home which comes closest to what you want. Don’t have such a detailed list of requirements that you literally shut out any chance of finding a suitable home.

Home Buying Tip # 4

Get a feel for what properties are worth by checking recent sales statistics. Also search through MLS listings, real estate newspaper ads, real estate internet sites, drive around your preferred area and look for "FOR SALE" and "OPEN HOUSE" signs.

Home Buying Tip # 5

Visit open houses and ask lots of questions. Doing this will give you a good feel for how properties compare on price, features, quality etc. When I bought my last home I visited many open houses before I put in an offer.

Home Buying Tip # 6

When visiting an open house don't just look at the house in isolation. Are other homes in the area presentable and are they of the standard which you want to live with? Do neighbors take pride in their properties? What are the neighbors like? You might even consider introducing yourself to neighbors and ask them about the neighborhood.

Home Buying Tip # 7

If the property is on a busy or noisy street it may affect the property value. Is it a quiet street or is there a lot of traffic?

Home Buying Tip # 8

Look for other things that might affect the value of the property. Are there high tension wires or cell phone sites nearby? Is the property affected by high trees that block the light or winter sun? Are there noisy or smelly factories nearby?

Home Buying Tip # 9

Consider access to community facilities, shopping malls, public transport, schools etc. Although the quality of a school district might not matter to you now, it might in the future, or it might matter to another buyer. 

Home Buying Tip # 10

Is the home you are looking at buying unusual and does it appeal to a limited market? A lot of homeowners like put their own personality into a house, which is to be commended. However, if the style is too "uniquely individual" it may appeal to only a limited number of potential buyers. This will usually minimize, rather than maximize, the resale value of the property.  

Home Buying Tip # 11

Look to see if there is anything unusual about the land that the house is built on. Is the section prone to flooding? Is the driveway shared with another property. Are the boundaries and fences where they should be? This is where professional advice is needed to ensure you don't buy into a problem.

Home Buying Tip # 12

Is the home structurally sound? Unless you have lots of money to risk, a thorough home inspection is wise investment. A Home Inspector will focus especially on the structure, construction, and mechanical systems of the house. He or she will make you aware of any repairs that may be needed.

The most expensive problems are not always obvious to the untrained eye. Call in the experts! 

Home Buying Tip # 13

Is the roofing in good order, or does it need repairing, or replacing? Has the roof been carefully maintained or are there water stains on the ceilings?

Does the roof complement the style of the home? Does it add to the home's visual appeal and its resale value?

It may come as a surprise, but the color of the roof should be a consideration when buying a house. Apart from the general look of the roof and how it matches with the rest of building, roof color can affect energy efficiency in a home.  

In colder climates, a dark colored roof can be a good option because it absorbs more heat. In temperate climates, a middle-range shade might be a better option. A light-colored roof tends to reflect the heat, so could provide energy savings in regions where air-conditioning is used throughout the year.

Home Buying Tip # 14

Are the foundations sinking? Although most foundation problems can usually be rectified, the repair/replacement costs may out-weigh the benefits. 

Home Buying Tip # 15

At the same time as checking the foundations, look for signs of moisture build-up or drainage problems, especially in basement areas. The experts have special equipment to test for moisture content in walls and other areas. Remember, fixing these kinds of problems can be costly.

Home Buying Tip # 16

Here is something that is frequently overlooked by homebuyers. Is the electrical wiring and plumbing in good working order? Faulty wiring is dangerous and could pose a potential fire hazard...an it can be expensive to repair. The plumbing also needs to be considered when arranging the home inspection. As a matter of interest, when I visit an open house I make it a habit to run the shower to check the water pressure.

Home Buying Tip # 17

Are there any illegal structures on the land? Are there any outstanding permits that have not been signed off by local authorities? Are there any easements like the right to pass across the property, the right to construct and maintain a roadway across the property, the right to construct a pipeline under the land, or a power line over the land? Easements can affect the value.

Home Buying Tip # 18

What needs to be done immediately to bring the property up to your standard (or taste)? What about the color scheme... do you prefer carpets, ceramic tiles, or wood floors? Think not only about what you like, but also about what might improve the value for when you come to sell.

Think about what might need to be done in the near future in the way of maintenance or improvements? What cost will be involved? Another home buying guide is to expect lower maintenance costs with a brand-new home.

Home Buying Tip # 19

If you think you may need more space in the future, be sure the house and lot will allow for expansion. Will your furniture fit in the space? Is there enough storage space? Another quick home buying guide is to carry a tape measure with you when inspecting open houses.

Home Buying Tip # 20

The kitchen and bathroom(s) are a key factor in any home. Do they meet your requirements? Redoing a kitchen is likely to be expensive. So be sure of what you need and want before you buy. The same goes for the bathroom. As a guide to buying the most suitable home to meet your requirements, decide whether you need one, two, or three bathrooms... do you need a separate toilet, shower, bath, Jacuzzi?

Home Buying Tip # 21

What are the opportunities to increase the value of the property, and ultimately create a positive effect on the resale value eg. Adding a garage, redecorating, landscaping, subdividing the land, adding an extra room or level etc? A good home buying guide is to pay attention to floor plans. Changing layouts of rooms later, can be expensive.

Home Buying Tip # 22

Consider the other advantages and disadvantages of buying the property. Does the property have good views? Is there easy access to the property? Are the parking or garaging facilities adequate?  How is the property sited in relation to the sun and the prevailing winds? A well sited home costs less to heat and cool and can save thousands of dollars over the years in utility bills.

Home Buying Tip # 23

What type of building materials do you prefer? The three most popular wall choices are brick, wood siding and stucco. Wood window frames can add character, aluminum window frames are practical and vinyl windows have certainly become popular over the past fifteen years. Around 50% of home buyers seem to prefer brick for exterior walls over wood siding or stucco.

Home Buying Tip # 24

Consider the methods of heating an/or air conditioning. Is there adequate insulation from weather extremes?  

Home Buying Tip # 25

Although you may not be a gardener, landscaping and trees do enhance the beauty and value of a lot and house. Plant deciduous trees, shrubs and vines to provide shade in the summer and sunshine in the winter. Imagine the house in good weather and bad, and in each season.  Will you be happy with it year-round?

Also, look carefully at the indoor/outdoor flow of the house and whether you could improve on it. Access from indoor living spaces to exterior spaces (decks etc)
encourages outdoor living and appeals to many. 

Home Buying Tip # 26

Another good tip is to take indoor and outdoor photographs of each house you inspect. A checklist is a good tool too. Gather as much home buying information as you can. Take photos and make notes because it can get confusing when looking at several properties. And don't hesitate to return for a second look.

Home Buying Tip # 27

Consider how long the property has been on the market, especially when compared to similar properties that are on the market (or have recently sold). The home buying information you need will include the original listing date of the homes you inspect.  This may give you an idea of how motivated (or desperate) the owner is to sell. Sellers tend to be more flexible in the price the longer the home is on the market.

Home Buying Tip # 28

Here is a really important piece of home buying information. Be careful what you say to the seller, or the sellers broker. Never tell a sellers broker how much you'll raise your offer for a particular property.

Home Buying Tip # 29

Check on the property tax liability. The listing information will usually include the total amount of the previous year's property taxes. Alternatively, you could ask the seller for a tax receipt or contact the local assessor's office. Tax rates can change from year to year, so these figures may be approximate. The more home buying information you can gather the better informed you'll be.

Mortgage interest and real estate taxes are usually deductible. A qualified real estate professional can give you more details on other tax benefits and liabilities that may alter depending on the Country (or State) where you reside.  
 

Home Buying Tip # 30

A paid homeowner's insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. Involving the insurance agent early in the home buying process can be helpful and save you money.

If the present owner has a title insurance policy less than 3 years old, you could have substantial savings by buying a reissue of that policy rather than a completely new one. Find out if you qualify.

Home Buying Tip # 31

By the time you're ready to make an offer, you should have a good feel of what the property is worth and what you can afford. You will have carefully considered all the home buying information you can lay your hands on.

·         Amount of earnest money  

·         Down payment and financing details  

·         Proposed move-in date  

·         Price you are offering  

·         Proposed closing date  

·         Length of time the offer is valid  

·         Details of the deal  

Home Buying Tip # 33

Clearly understand the roles and duties of various parties involved in the real estate
transaction. Especially understand who represents whom. Unless you have a buyer's agent, remember that the real estate agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential.

These are some of the things you need to check. Remember to arrange a home inspection before you sign a written offer, or include an inspection clause in the offer. A correctly worded inspection clause can provide an 'out" on buying the house if serious problems are found.  It can also specify that the seller must fix the problem(s) before you purchase the property. It may also give you the ability to renegotiate the purchase price if repairs are needed.

The last piece of home buying information... I strongly suggest you talk with your legal advisor before you buy or sign anything. It is important that you are aware of legal aspects, documents required and regulations etc for buying a property in your Country (or State).