|
|
|
|
Nine
Things to Consider When You Buy a Home
|
|
|
If you're in the market for a dream home, congratulations. Owning a
home is one of the goals many people have in life. However, there are
several things you should consider as you buy a home so that you don't
end up regretting your decision or worse, spending loads of money on a
house that simply is a so-called "money pit".
Have a team of advisors
Don't try to make this decision all on your own. Consult a property
inspector, your lender, your real estate agent, and yes, even a lawyer
as you go through the process. However, make sure the people you use as
your advisers really know what they're doing. You're also going to have
to do your own homework; just because you've got advisors doesn't mean
you can simply listen to their advice and not do some thinking of your own.
Don't just go on looks
These days, house "staging" is all the rage, whereby homeowners hire
people to make their houses look their best before they sell.
"Improvements" can include new carpet and new paint, but remember that
these are merely cosmetic improvements. The house's overall
construction and quality should take precedence over how the house
actually looks in terms of attractiveness. In addition, make sure you
check all assets of the house, including location, how well it's really
going to fit your needs, and so on, before you buy.
Get financing before you look
Get preapproved for financing before you begin your search. With this
type of prequalification, you will know how much you can borrow and
therefore how much house you can actually buy.
Don't overborrow
Even if you can, don't borrow more than you need. Sit down and
carefully figure out your budget, including what your monthly expenses
will be -- mortgage, taxes, utilities, insurance -- in-house versus
where you're renting now. Take a look at your income and add up ALL of
these expenses to determine how much you can afford to actually pay
every month. Then, borrow just that much and no more.
Put it in writing
Put your requirements and conditions in writing and then make sure
everybody signs off on this requirement. Agents and sellers are
notorious for overlooking or ignoring outright conditions you've made.
By putting it in writing, you make sure that everybody's going to give
you exactly what you want.
Fine print counts
Fine print is fine print for a reason -- most people hope you're going
to overlook it. However, read it. Real estate contracts are long,
boring documents, but make sure you know exactly what you're getting
into before you sign.
Check other local prices
To make sure you're getting a fair price on the house, ask your real
estate agent to investigate for you (or do your own homework) and see
what houses have recently sold for in the neighborhood. Make sure you
don't pay too much just because you like the house.
Get the house inspected
Hire your own inspector (don't let a real estate agent do it for you)
and have him or her thoroughly investigate the house for any
structural, wiring, plumbing, or other difficulties that might make the
house unsafe or requiring expensive repairs. The report you get will
tell you to stay away from the house or at the very least can be a
point of negotiation; if the house has some significant repairs that
need to be made, the seller should agree to either make the repairs or
drop the price of the house enough that you can afford to make the
repairs yourself.
Don't go for "perfection"
Every house is going to have minor difficulties, no matter how careful
you are. What you want is an overall house that gives you what you want
and is in good enough shape that you're not going to be pouring money
into it constantly instead of enjoying where you live.
__________________________________________________________________________________________ |
|
|
|
|
 |
|
