Things to Consider when Buying a Home

I wrote an article on how to sell your home in a sagging market, so I felt it was only necessary to take the extra step and advise the buyer's interests as well. Buying a home seems as if it were a fairly simple process. You drive around and find the perfect home. You talk with someone about money and then put an offer in to the seller. They accept it, and fifty days later you're all moved in to your new pad. If you honestly think it's that easy, then you need some serious help. And by help, I don't just mean this article. That leads me to my first point.

Always use a real estate agent when buying a home.
This is the time to put pride aside, gentlemen. For all you guys out there that typically won't go into the gas station to ask for directions and instead choose to do everything on your own, well when you invest $300,000 into something you may want to rethink that strategy and call in the professionals. I'm a real estate agent in a hot coastal market, and I know a thing or two about the game so first off don't question my credibility. I'm better at real estate than you. Remember, the first step is getting over that denial. I do this for a living. It puts food on my table and shoes in my wife's closet. The first misconception most people have about real estate is that if you work with an agent when buying a home then you have to compensate them. This is not true, unless there is a situation where you're buying a home that is For Sale By Owner and the seller refuses to pay a commission to a buyer's agent. Anytime a home is listed by a company, the seller pays ALL of the commissions. Yes, that's right. If I'm working with you, as a buyer, in finding you a home then you're not paying me a penny. I'm working for free.

Second, the process is not that simple. There's enough paperwork alone to rival that of a Dean Koontz novel. From the moment you work with me, I'll show you on average 15-20 homes, all of which you wouldn't be able to see the interior anyways unless you worked with an agent. From there we'll narrow the list down to the one you like and put an offer on it. I'll negotiate the offer in terms of your best interest. We'll go under contract. I'll set up all inspections including termite inspections, radon inspections, home inspections, each time negotiating what repairs need to be done on your behalf. I'll set up the closing attorney and monitor the loan package as it is processed. A buyer's agent is not only free, but by having this third party with no emotions involved representing your interests can truly be of benefit. Many times when you're making an investment this large your emotions can get in the way and affect your decision making abilities. That's where I come in.

Ask the neighbors.
Let's go back to the moment where we find the perfect home for you and you're contemplating an Offer to Purchase. You've seen the home, surveyed the condition, and you're comfortable with the actual structure. One thing most buyers don't take into consideration are the neighbors you'll be living with. A house can be great, but if five of your neighbors are college students with a knack for playing loud heavy metal music at two in the morning then it's worth passing on. Always be on the lookout for external factors that aren't necessarily tied to the house. For instance, is there a lot of airplane traffic overhead from the airport that is located nearby? Does traffic get loud at the interstate just outside the community? Is there any crime? Also, you never know whether or not there was bad blood between a neighbor and the current homeowner of the home you're interested. They would be willing to reveal any problem with the home. In a coastal town you'll want to ask the neighbors about flooding problems or damage from storms. A little talking can go a long way.

Be investment minded.
I often refer to the process as "house buying" not "home buying." The word "home" signifies emotion, such as a place where you'll make memories and spend many holidays with your family. "House" implies nothing but a pure location and a structure. It's a product. You're about to dump a lifetime of money into a few sticks and a roof so it's smart to think of the best ways to get the biggest bang for your buck down the road. When buying, think of yourself as only being at this location for five years. What is this area going to be like in five years? Have your real estate dig and do some research for the area. Is there a lot of demand to be in this community? Buy in an area with good school systems. In most areas, this advice applies even if you don't have school-age children. When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values. Are there any active commercial proposals in the area that will decrease demand to live here such as future sites of sewer treatment plants, trash pickups, strip clubs, or bars? Your real estate agent should also check the appreciation rates in the area over the past 6 months to see if prices have increased at all. Try to stick to something that is three bedroom or higher. Yes, the two bedroom is cute, but again think of resale down the road. Most families have one or more children and a two bedroom will be a tough sale.

Location=convenience.
Okay, you've found the perfect home. You're even already considering where you're going to put your sofa, loveseat, and the 52 inch flat screen television you just bought that will probably ruin your credit but you just had to have it. You've asked the neighbors, crunched the numbers, and your real estate agent has dug through so much research he could bury a Cadillac in the hole he left. Well, where exactly is this house? Sure, it's a nice neighborhood but where are the nearest commercial spots? Make sure there are plenty of grocery stores, fire departments, police departments, and restaurants that are in reasonable driving distance. Remember, you want everything to be convenient. Sometimes buyer's lean toward buying homes outside the city since prices are lower but the reality is you're paying for the convenience of being within twenty minutes of civilization. Keep in mind that the $200,000 price tag doesn't always necessarily mean the home itself, but all the factors that come with it.

Does the home have everything you want?
Men and women have different ideas of what they want in a house. Make a list of ten different things that important to you in a home. The factors can range from a big kitchen to having the extra room over the garage. Most of the time women want a nice kitchen and master bathroom, while men tend to look at the lot size and garage size. If you can find a home that connects on at least seven of the ten factors then it's going to suit your needs. Always make sure the house has plenty of storage. Every person has more stuff than they ever imagined, so be certain that your cardboard boxes can fit in the storage space. Think about the layout, especially if you have pets. If the only door leading to the backyard is on the far side of the house then do you want to have to make that trip every time Spot needs to use the bathroom? If there's a deck out back and the only door to get to it is through the master bedroom then do you really ant company to trek through your bedroom to get there? If it is not a split bedroom plan and you tend to have a lot of company, then there could be a problem with privacy. Is there a fence? If not, you'll spend $4000-5000 putting one up. These are all factors that you need to take into consideration.

There's no scientific formula to buying a house, but by using a professional you can certainly increase your chances of finding a house that you want. Be open minded, detailed, and unemotional. Good luck and good house hunting!