The Top 5 False Assumptions Residential Home Buyers Make
So what are the biggest myths?
"This property has city water and sewer." The truth is, most homeowners don't know. Listing agents typically use information provided by the homeowner, which may be inaccurate; for in-city properties, assumptions are often made about homes being connected to the local municipality. In reality, location isn't a good predictor. Here in Charlottesville, there are a handful of homes not connected to the city services, but we see listing information showing that they are. How would you like to find out that, instead of containing a sewer system, your backyard was really a leach field for your household waste?
"The basement is dry." I love this one. A basement is only wet when it is ... wet. There are a lot of things owners do to hide, or mask, a wet basement. Humidifiers, paint, wet vacs, recently replaced carpet, a sump pump, scheduling showings only in the dry season - all of these are signs of a moist basement, if not one that is leaky during heavy rains. Assume that short of a full-blown professional water management system like a french drain, all basements, at some point, have moisture. It is rare to find a 100 percent leak-proof basement.
"This house gets high-speed Internet, DSL, or cable." Unless the current owners have exactly the kind of service you want, don't assume. Most folks don't know what they have; they only know that it works. If you have specific needs for speed, or the capacity to upload or download large files, do your homework. I live in a very rural area with (very slow) satellite as my only option. But my neighbor 2 miles away has fast DSL service because of another neighbor and the strings they were able to pull. Don't believe what the neighbors say, either. Each property has its own profile when it comes to Internet and cable TV service.
"This land will never be built upon." Maybe my all-time favorite. Never is a long time. All it takes are a few changes in policy, and in come the chain saws and backhoes. Do not assume that land abutting or near your home will stay in its current state. Unless you own it or have the power to zone it, assume that its state will eventually change. The quiet land you're buying, the view, the access, the privacy? Consider carefully what you're buying, know the current zoning parameters, and understand what it takes to make changes.
"This is the best or quietest street, neighborhood, or school system." Nothing is ever "the best." That is subjective, depending on who is doing the asking. All agents, neighbors, sellers, appraisers, and loan people have their ideas about what is best. For you and your family? You must do your homework. Your buyer's agent should be able to assist you with unbiased third-party sources that can take your criteria for what "best" looks like - for you - and turn that into an actionable search plan.
In real estate, as in any profession, there are misnomers and falsehoods everywhere that get perpetuated. Don't be duped. Ask strong and specific questions, look for proof, and don't take lightly what may be the biggest purchase of all.
*Note: This was written by a Yahoo! contributor. Do you have a real estate story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
More from this contributor:
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HOA's, Deeds, Rights of Way, CCR's, Easements, and Other Restrictions on Your Property
Published by Deborah A. Rutter
As a licensed Virginia broker, I specialize in helping new and veteran buyers and sellers create successful transactions by teaching, showing and killer negotiation. My clients complete successful transa... View profile
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11 Comments
Post a Commentcheck all crawl spaces directly in contact with your roof ! especially if the roofline is met by any trees. check all crawl spaces located near basement also..these are great places for problems to hide. these two places ended up being the beginning and end of a huge problem that started on top and ending at the bottom via a very large and amazingly concealed hole in the roof !
believe me i found this giant hole an hr b4 i was suppose to go to a party on memorial day and i ended up staying home and fixing it the rest of the day and the bottom problem was found after i removed a set of factory made cememt steps. the leak ate from top to bottom making holes and letting in not only more rain but chipmunks and bats. the inspector did not catch this problem or he just let it go. check ALL CRAWL SPACES !
Hi Woodstalker: As a licensed full-time agent, I am only as good as my satisfied customer who refer clients to me. While I want my sellers to get as much for their homes as possible, I also want my buyer clients to pay the least amount. I put in low offers on my behalf of my clients that get accepted and I may make less money, but I get referrals for representing my clients and going a great job. The average real estate agent makes less than $40k a year so there is little incentive for (most of) us to shoot ourselves in the foot for short-term gain. It's the difference between using a smart, ethical agent, versus a part-timer who is just looking at the next paycheck.
real estate agents are not your friends, they want as much as possible for the house, whether you're are buying or selling, it's their livelihood.
Just remember, you have to take into consideration the price you are paying for the home and what it was worth. In todays market a lot of homes are being sold at a bargan to prevent forclosure, you can not expect a perfict home for half price
The above statements are true. I love helping the home buyers especially if they are first time buyers. I tell them that it's never too late for a good home inspection until it is!
You need to hire a real-estate attorney to represent you towards the seller, ESPECIALLY if the seller is a bank. (i.e. foreclosed home) Banks have their own lawyer and WILL formulate the transaction in a language that you don't understand that it gives full advantage to the bank. Also the bank will NOT DISCLOSE any damaging information about the house to you because in the eye of the law you are not a legal entity. Only lawyers can subpoena the bank to supply all documentation about the house.And especially, especially have the lawyer litigate the transaction and write the sale contract for you. You can be a smart guy but you WILL NOT UNDERSTAND all consequences of the contract, they write it that way on purpose.
Jerry: You are right; the Lead Paint disclosure is key for pre-1978 homes, but that lead paint was still on the shelves after 1978, so anyone concerned about lead paint should test, for sure. And you're right again; disclosures rely on the honesty of the seller with enough escape-clauses that deceit is common-place. Good, solid, experienced agents can look for those warning signs.
L: Interviewing the neighbors is something I always recommend to buyers; gut instinct is worth a lot, and checking for sex-offenders in most places is now quite simple if that is a particular concern. Property lines should be checked by the lender during a standard mortgage survey for encroachments, etc. Even if a buyer is paying cash, a survey is still a smart idea.
Msgtz: Thank for the notice about the links!
PRE 1978 HOMES MUST HAVE LEAD-BASED PAINT DISCLOSURES, SIGNED BY BOTH SELLER AND BUYER BEFORE THE CONTRACT OFFER IS SUBMITTED. IF ANYONE TELLS YOU DIFFERENT, THE SELLER AND REAL ESTATE AGENT ARE LIBEL FOR SEVERE DAMAGES.
I am a Real Estate Agent. I can tell you that there is so much deceit and fraud, that the buyer better have a great Real Estate Agent. Disclosures are incomplete and everyone seems to lie. There is so much heresay, that you need to collect your own information on the true facts. If an agent tells you one thing that is not true, RUN!
Find out the neighbors names. Check their criminal records. Especially if you have kids. (Also check for sex offenders in the area.)
Have your inspector or someone you trust check the roof and/or attic. (If need be visit the house when it is pouring outside.)
Make sure the listed property lines match up not only with the local municipality but also with the county records.
We bought our place right before the market crash was "publicly" acknowledged...sigh. Now I feel trapped here for a handful of reasons including the current housing market.