What words come to mind when you think about finding a new home? Exciting? Scary? Overwhelming? The truth is that finding a new home can be all of those things. The way you feel about finding a new home can depend on why you're moving and how much time you have to find a home. Perhaps you're just beginning to think about moving. Or maybe you've found yourself in the difficult situation of having to move quickly for reasons like needing to downsize or to relocate for work.
Before you begin looking for a house, go back and work through the issue of how much of a home can you afford and try to really think about how long you think you'll live in the home. Putting down on paper what price range you want to stick to is an important discipline that will help you stay focused while looking for a home. Thinking about how long you might live in the home can help you weed out homes that might not meet your short-term or long-term needs.
Once you've established how much of a mortgage you can afford, and how long you plan on living in the home, the next two steps to take are determining where you want to live and what you're looking for in a home.
Where Do You Want to Live?
When you're buying a home, you're deciding where you want to live. Not just what type of home you want to live in, but what type of community you want to be a part of. Sometimes you don't have time or many real options about where you want to live, like if you have to move quickly for a job relocation or if your choices are limited by your finances. Even if you don't feel like you have a lot of time or options, you should still ask yourself a few questions to learn as much as possible about your future neighborhood, such as:
Determining what area or community you'd like to live in can help narrow the field when it comes to finding a home. Now consider exactly what you're looking for in a home. Ask yourself:
No matter how closely you look while walking through a home that you're considering buying, there are things you either wouldn't know to look for, or wouldn't be able to evaluate. That's where a home inspector can help out.
Although by law sellers are required to disclose, or tell you, anything that they know is wrong with the home, you're also protected by a home inspection clause. When you make an offer on a home, part of the contract you'll fill out will ask if you want to require a home inspection. Having a home inspection means that a professional home inspector will come and examine every square inch of the home to give you an accurate picture of the home's condition, including the home's interior, exterior, foundation, insulation, electrical wiring, plumbing, and more. A home inspector will not comment on the value of the home, or whether or not you should consider buying the home. Their only job is to report on the condition of the home.
It's a good idea to be onsite for the home inspection. A good inspector will show you everything he or she is looking for. It can help to know what you'll need to replace or update, and what to be on the lookout for that might give you problems down the road. The inspector should give you a copy of the report. Depending on what the home inspection turns up, you'll have the opportunity to possibly renegotiate the contract to offer less for the home, or require the homeowner to make specific repairs before agreeing to close on the home sale.
Homework
This month you're going to do a little homework to outline what type of community you'd like to live in and what you're looking for in a home.
The bottom line is that you have a better chance of getting the type of home you want if you figure out ahead of time what you're looking for and how much you can afford
Before you begin looking for a house, go back and work through the issue of how much of a home can you afford and try to really think about how long you think you'll live in the home. Putting down on paper what price range you want to stick to is an important discipline that will help you stay focused while looking for a home. Thinking about how long you might live in the home can help you weed out homes that might not meet your short-term or long-term needs.
Once you've established how much of a mortgage you can afford, and how long you plan on living in the home, the next two steps to take are determining where you want to live and what you're looking for in a home.
Where Do You Want to Live?
When you're buying a home, you're deciding where you want to live. Not just what type of home you want to live in, but what type of community you want to be a part of. Sometimes you don't have time or many real options about where you want to live, like if you have to move quickly for a job relocation or if your choices are limited by your finances. Even if you don't feel like you have a lot of time or options, you should still ask yourself a few questions to learn as much as possible about your future neighborhood, such as:
- What type of area would you prefer to live in? For example, are you interested in living in the city or an urban area? What about the suburbs or maybe something more rural?
- How far do you want to be, or are willing to be, from work, schools, your place of worship?
- Are you interested in a planned community? Planned communities are relatively new and usually offer several residential neighborhoods as well as centrally located shopping and services (such as doctor's offices, gas stations, restaurants, etc.). Planned communities will almost always require a homeowners' association fee, which can be several hundred dollars a year, to pay for community amenities and upkeep.
- What type of neighbors would you like to have? Do you want to live in a community of mostly young professionals, or families with young children, or would you like a mix of neighbors?
- How far is it from your, or your spouse's, place of employment?
- What are the local schools like? If you have, or are planning to have, children, you'll want to know about your local school system. You can get reports on your community's schools from your Realtor, the local school board, or throughthe National Association of Realtors' website.
- What about public transportation? If you use public transportation regularly to get to work or to go shopping, it's essential that you have easy access to public transportation routes and that the routes take you to where you need to go. Even if you don't now regularly use public transportation, it can be very helpful to have the kind of flexibility public transportation offers.
- What about community amenities? Are there parks, pools, libraries, etc. nearby?
- What are the estimated taxes on the home? Every home listing should include information on estimated taxes for the area. You can get tax information from the homeowner, your Realtor, or from the county's tax office.
- What type of city, county, or private services does the home use? For example, does the home use city water and sewer systems? Does it have well water? Is it part of a homeowners' association that provides trash pick-up and landscaping services?
- Is it a safe neighborhood? Driving or walking around the neighborhood can give you any tip-offs about local crime activity, or ask your Realtor or stop by the local police station to get information on the local crime rate.
- Are there proposals for major development nearby? Ask your Realtor or check with City Hall to see if there are any existing proposals to build major roads or developments near by such as shopping centers, public transportation hubs, etc.
- How is the local traffic congestion?
Determining what area or community you'd like to live in can help narrow the field when it comes to finding a home. Now consider exactly what you're looking for in a home. Ask yourself:
- What mortgage amount can you qualify for and realistically afford on a monthly basis? Are you surprised to see a financial question top the list? That's because it's going to save you a lot of time and heartache if you figure out how much of a house payment you can afford given your current income and expenses. Think of it like clothes shopping. When you go looking for a new outfit, you have a general idea what size you're looking for. If you didn't, you would spend a lot more time and effort trying on clothes that wouldn't fit. Likewise, determining a realistic mortgage amount that you can afford, in a price range, not an exact amount, will help you eliminate potential homes right off the bat…saving you the time of looking at the home, and the emotional energy of considering it a reasonable choice.
- Do you have a certain type of home in mind? For example, are you interested only in single-family (detached homes) or condos/townhouses (attached homes)? If you're looking in a more urban area, would you consider buying in a cooperative apartment?
- Do you only want to see newer homes (typically built within the last 10 years) or are you open to looking at older homes?
- Do you have a certain style of home in mind? For example, a one-floor rambler, or a two-story center hall colonial? The more open-minded you are when it comes to homes you'll consider, the more options you'll have when house-hunting.
- Does it have a floor plan that works for you and your family? Do you like how the rooms are laid out? If you have young children maybe you want to be able to see your kids from the kitchen. Or if you have teenagers, maybe you want to have their bedrooms further away!
- How many bedrooms and bathrooms do you want? Not only to meet your current family needs, but think ahead to potential future needs such as having a home office or accommodating more children, guests, or aging parents.
- Is the kitchen adequate? Does it have the type of appliances, cabinetry, and countertops you'd like? What about the age and condition of the appliances? Do you like the traffic pattern of the home - how the rooms connect to one another? Since families tend to spend a lot of time in the kitchen you want it to be a place where you feel comfortable, or at least have an idea about what you'd change to make it the kitchen you'd like.
- Does the house have the type or size yard you'd like? Is there enough space for kids to play or to entertain? Is it fenced? Can you landscape the way you'd like?
- Check out the storage. Are the closets big enough for your family? How about attic storage? Is there garage space or additional storage units such as a shed?
- What is the condition of basics like the plumbing, wiring, heating and cooling units? The older the systems, you'll want to consider how much it would cost to eventually replace those pieces/systems.
- Will it require a lot of repair or updating after moving in? You'll want to note things that could carry a hefty price tag, such as replacing appliances or roofing, refinishing hardwood floors or installing new carpets, or really remodeling the home such as tearing down a kitchen wall to create an eat-in-kitchen, adding another bedroom, etc. By making and prioritizing a list of things you'd like to change about the house you can begin to add up how much money you'll want to save or how much additional money you'll want to take out when applying for a mortgage to finance the work.
- How much will it cost to maintain? It's a good idea to consider upkeep costs (such as painting, landscaping), and utility costs (such as heat, water, electric).
No matter how closely you look while walking through a home that you're considering buying, there are things you either wouldn't know to look for, or wouldn't be able to evaluate. That's where a home inspector can help out.
Although by law sellers are required to disclose, or tell you, anything that they know is wrong with the home, you're also protected by a home inspection clause. When you make an offer on a home, part of the contract you'll fill out will ask if you want to require a home inspection. Having a home inspection means that a professional home inspector will come and examine every square inch of the home to give you an accurate picture of the home's condition, including the home's interior, exterior, foundation, insulation, electrical wiring, plumbing, and more. A home inspector will not comment on the value of the home, or whether or not you should consider buying the home. Their only job is to report on the condition of the home.
It's a good idea to be onsite for the home inspection. A good inspector will show you everything he or she is looking for. It can help to know what you'll need to replace or update, and what to be on the lookout for that might give you problems down the road. The inspector should give you a copy of the report. Depending on what the home inspection turns up, you'll have the opportunity to possibly renegotiate the contract to offer less for the home, or require the homeowner to make specific repairs before agreeing to close on the home sale.
Homework
This month you're going to do a little homework to outline what type of community you'd like to live in and what you're looking for in a home.
- If you haven't already figured out how much of a mortgage you can afford, take a few minutes to do so now. Determining what you can really afford makes it easier to make the decisions about what type of home you want to seriously consider.
- Using the questions in the article, try coming up with a brief description of the type of neighborhood and home you'd like. Writing a description that includes your absolute "must haves" (such as the number of bedrooms/bathrooms), and things you prefer in a home if possible (such as a garage or in a specific area) can be very helpful for a Realtor or anyone else helping you in your home search.
- Compare your realistic mortgage amount with your desired home description. Connecting these two things can help give you an idea of whether or not you're being realistic in your home search.
The bottom line is that you have a better chance of getting the type of home you want if you figure out ahead of time what you're looking for and how much you can afford
- Identify people or resources that can help you in your search for a new home. Do you know someone in your desired neighborhood that could help you? Are there papers or online resources you could use to help you find a home? Sources of potential help can vary depending on what type of area you're considering. For example, if you're planning on moving to a city or urban area you'll want to look in the paper (and consider getting a short-term subscription to the local paper if you're living out of town), consider a real estate professional, and ask friends or family living there to keep an eye out for properties that become available. Give them a general idea of what type of price range you're looking at and any other specifics that could help them look for you.
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