Top 10
Things New Home Buyers Should Know
1. Understand the responsibilities
This primarily applies to
first time home-owners but if you are looking to move to a larger home you need
to understand that the responsibilities often increase with size. If you are a
first timer, purchasing a new home is not always cut and dry. There are many
factors that come into play and much to be considered. Do your homework as
research is an important role in buying a new home. Also, enlist the help
of a mortgage counselor, lawyer, real estate agent or home builder. Complicated
issues often arise when you own your home and the smartest buyers are those who
have a thorough understanding of all that goes into a home, as well as your
rights as a buyer.
2. Get pre-approved for a loan
The pre-approval process is a more thorough qualification than the pre-qualification. A pre-qualification simply tells your agent that you are serious about purchasing a new home. It’s not a very detailed process. A pre-approval tells all parties involved that you are financially ready to purchase a new home.
This will give you, the buyer, more purchase power as the seller will be confident that you are financially fit to make such a purchase. This process means that the bank or mortgage lender will be granted access to all your finances – your assets as well as your liabilities and debt, if any. This process will also inform you as to what financing options are available to you in today’s market.
3.
Location, Location, Location
Know where you want to be. Think about your
lifestyle – will you be in your element in your new environment? What is your
lifestyle now and what might it be in 5 10 years? Will you need to commute to a
nearby large city? Do you or will you have school aged children? Do you want to
live in a neighborhood or in town? Would you prefer to have a smaller home in a
more expensive town or a larger home a bit further away from a nearby large
city? Do you want to be in a 55 and over community?
These are all important factors you should take
into consideration. If you are new to an area you may want to think about
renting first for 6 months to a year in order to familiarize yourself with your
new location and all that it has to offer. You wouldn’t want to end up with buyer’s
remorse after having purchased a home that was not quite right for you. Take
the time to really get to know your surroundings. You will be very happy you
did in the long run.
4.
The man cave
Once you’ve narrowed down where you want to live, you then need to figure out what it is that you want in a new home. Do you want a newly constructed home with all the latest amenities or an older historical one that you can work on and renovate over the years? Do you want a large yard for children and pets, or would you prefer something requiring less maintenance so you won’t have to go out and spend your summer weekends landscaping?
Do you want a porch or a fireplace? How many bathrooms must you have? Do you have young children? Is the house child-friendly? Do you like to entertain? Does the house have a good flow and a guest room? Make a list of all your Must Haves. Most likely you won’t find all of them in one home, but as you look at your potential homes you can start to prioritize which of these Must Haves are truly necessary and which ones you can do without. Be open to suggestions from the professionals.
5.
Get off the internet
Once you’ve searched the internet and found some homes that meet your criteria it’s time to get off the internet and see them in person. As with looks, photos can be deceiving. Many builders and listing agents hire talented photographers who can create images that can make rooms in a home appear larger than in real life. Often stagers and stylists are brought in to make a home look more inviting. On the flip side, photos may have been taken of the home that just don’t do it justice. The only way to know if a house is right for you is to go out and see it for yourself.
Either go directly to a new home builder or enlist the help of a reputable real estate agent to show you homes that meet your criteria and suit your needs. Professionals will have suggestions that you might not ordinarily have taken into consideration. Public open houses are a great resource to take advantage of.
6.
Don’t judge a house by its cover
Look beyond the staged furnishings or the purple siding. New home builders often stage their new construction before putting it on the market, but this does not always happen. While staging a home can make a home look fantastic, it is important to look beyond the decor. Look at the structure and the flow of the home. Is it well built? Imagine how your belongings will fit. Will there be enough room? Are the rooms large enough? Are the ceilings tall enough?
Some builders give you the option of choosing your appliances, fixtures, and flooring. Often with new construction, you can add your own personal touches and customizations.
7. Have a back-up plan
It’s important to have a back-up home. There are a number of things that can happen in new construction or a previously owned home. New home builders make every effort to complete construction on time but unforeseen circumstances may come up during the final stages that may delay the timetable. It is a good idea to be emotionally leveraged so that if your dream home move in date is not timely, you have a plan B to fall back on.
8. Get as much information
on your desired home as you can
If you are not building a new construction, then have a CMA (Comparative Market Analysis) done on the home of your choice through a real estate agent. There are many websites that will give you an estimate on the value of a home, but the comparable information is not always up to date and may not always be accurate. These sites do not know the local market like your builder or agent does.
9.
Get to know your neighborhood
If you are relocating from out of town or moving to an unfamiliar area of a large city, it might be worthwhile to visit town hall to find out more. In the case of an older home, take some time to talk with the building and zoning departments to see what work has been done to the house, and that permits were pulled and a certificate of occupancy was granted. Building and zoning may also have a survey on file for you. If a survey has not been created you may want to consider getting your own done. In light of recent weather-related events be sure to check if you are in a flood zone or area frequently hit with hurricanes.
You should find out that the home is in a flood zone, ask whether or not you need an elevation certificate for your insurance company. If you are planning to do work to the home, you will be able to find out what the town and FEMA require you to do before any additional work is done to the home. A visit to the tax assessor will also let you know if there are any liens on the property.
10. Keep
your cool during the building inspection
Be prepared. Inspectors need to find everything wrong with the house – that is their job. Many of these issues are small, insignificant things. Others may not be quite so small or insignificant and yet others could potentially be quite grave. After the inspection, make a list of your priorities so that you can decide for yourself what a non-issue is and what could potentially be a large problem. You can always discuss these matters with professionals to give you more information, as well as an estimate of any additional work that may be required.
Happy house hunting and Good Luck!
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