shampoop
Well-known member
So I'm looking into buying my 1st home, was wondering what kind of literature you would suggest reading to bring my uneducated *** up to date on the subject.
1st time home buyer advice
- Thread starter shampoop
- Start date
Best advice is perform detailed HOME INSPECTION before final purchase of any house. Whether this is experienced "Dad" / friend or even paid Home Inspector, have to critically evaluate HVAC systems, electrical, insulation, proper construction, etc to determine if big expenditures would be on you after purchase. ALL code violations should be remedied BEFORE the house is bought at Seller's cost. Test EVERYTHING for proper operation - - - every single light switch, sump pump, heating/AC (be sure sniffer test is done for leaking freon).
Force prior owner to buy Homeowner's Warranty (ie good for 1 yr) but make sure it has $-0- deductible for future problems. I found out hard way that HW isn't all it's cracked up to be if each problem costs you $75 a pop!!
Good luck and post more specific questions you might have.
Force prior owner to buy Homeowner's Warranty (ie good for 1 yr) but make sure it has $-0- deductible for future problems. I found out hard way that HW isn't all it's cracked up to be if each problem costs you $75 a pop!!
Good luck and post more specific questions you might have.
Good advice right there.
A good home inspection is VERY important! Do your homework and pick the best you can find. Ask questions while the inspection is going on. The ***** who inspected my house missed alot of things that both of us should have caught.
Most of all, do not settle on any house. Wait for the right one.
A good home inspection is VERY important! Do your homework and pick the best you can find. Ask questions while the inspection is going on. The ***** who inspected my house missed alot of things that both of us should have caught.
Most of all, do not settle on any house. Wait for the right one.
jeremyboudrot
Member
- Joined
- Mar 6, 2013
- Messages
- 22
Just bought my first house in November.
What helped:
First and foremost, having a good realtor. My realtor is a 2nd cousin, so it helped on many levels. Having sold a lot of real estate, he was good at knowing market values, trends, and we put down offers accordingly. Furthermore, he was very good about answering all our questions, no matter how stupid they seemed to us. A good realtor should have a broad amount of knowledge regarding the entire process. A friend of mine used him as well, and then actually dealt with another realtor down the road in regards to a 2nd property and was unimpressed with their knowledge of anything outside of that particular deal (rates, DtE ratio needed for 2nd house, etc)
Home inspection: Absolutely. If nothing but to point out code violations if mentioned. The problem with the home inspection is that there's no liability to the inspector, generally. Consider it piece of mind.
Shop around for rates. Money is cheap, and there's no reason to part with more of it than necessary. Even with the market collapsing a few years ago, many of these programs are not as "strict" as they should be (my opinion), which allows for a responsible person to get a great rate on a new house. That said, also shop around for programs. Your mortgage person should cater a program to YOUR needs, not what will make them the most money.
Know your wants and needs. We wanted natural gas heat. Some houses had it, some did not. We lucked out and our house had it...but had we gone with oil, we'd just have to have planned our budget accordingly. We wanted to be within a certain distance from certain places...if it didn't happen, so be it. etc.
Know your own skill set. If you're handy, and willing to stay at the place for the first month with a sleeping bag and a can of raid, you can steal a house, and make it your own. If you can't change the batteries in a flashlight, there's obviously less options out there (so to speak). I was closer to the latter, however my father in law is very handy, so we had something in the middle. Turned our kitchen around in a month, and it looks great. Rest of the house needs minor aesthetics.
Ask peers or other first time home buyers. The landscape changes. People who were first time home buyers even 4 years ago faced different challenges than they do now.
Best of luck, and ask away.
What helped:
First and foremost, having a good realtor. My realtor is a 2nd cousin, so it helped on many levels. Having sold a lot of real estate, he was good at knowing market values, trends, and we put down offers accordingly. Furthermore, he was very good about answering all our questions, no matter how stupid they seemed to us. A good realtor should have a broad amount of knowledge regarding the entire process. A friend of mine used him as well, and then actually dealt with another realtor down the road in regards to a 2nd property and was unimpressed with their knowledge of anything outside of that particular deal (rates, DtE ratio needed for 2nd house, etc)
Home inspection: Absolutely. If nothing but to point out code violations if mentioned. The problem with the home inspection is that there's no liability to the inspector, generally. Consider it piece of mind.
Shop around for rates. Money is cheap, and there's no reason to part with more of it than necessary. Even with the market collapsing a few years ago, many of these programs are not as "strict" as they should be (my opinion), which allows for a responsible person to get a great rate on a new house. That said, also shop around for programs. Your mortgage person should cater a program to YOUR needs, not what will make them the most money.
Know your wants and needs. We wanted natural gas heat. Some houses had it, some did not. We lucked out and our house had it...but had we gone with oil, we'd just have to have planned our budget accordingly. We wanted to be within a certain distance from certain places...if it didn't happen, so be it. etc.
Know your own skill set. If you're handy, and willing to stay at the place for the first month with a sleeping bag and a can of raid, you can steal a house, and make it your own. If you can't change the batteries in a flashlight, there's obviously less options out there (so to speak). I was closer to the latter, however my father in law is very handy, so we had something in the middle. Turned our kitchen around in a month, and it looks great. Rest of the house needs minor aesthetics.
Ask peers or other first time home buyers. The landscape changes. People who were first time home buyers even 4 years ago faced different challenges than they do now.
Best of luck, and ask away.
charlestmann
Well-known member
As a professional home inspector I am a little uncomfortable with the use of the term "code violation" on existing construction. Building codes change and every state has adopted a different version (year) of the building code. Some states use different codes. To bring an existing home "up to code" would require a bulldozer!
I would definitely use a professional home inspector rather than a relative or friend who may be a builder or have construction experience. Unless you do this every day you will not know everything to look for. Keep in mind that home inspectors are generalists and are not experts in any given field. If your inspector tells you to have a particular system further evaluated by a more qualified professional (HVAC, plumber, electrician) you need to do so.
Also, in my area with home inventories being very low homeowners are doing less with repairs for potential buyers. If the homeowner is unwilling to do any or certain repairs you should get a quote for the cost of the repair and determine if the house is still worth buying.
If you need to find a good inspector visit www.ashi.org. You can type in your zip code and get a list of qualified inspectors. When hiring an inspector I would look for someone who has been in the business at least 10 years, is an ASHI member and code certified.
Also, get a radon test. Your inspector should be able to perform this for you (at an additional cost). Radon is the 2nd leading cause of lung cancer and having a house professional mitigated is expensive (between $2 and $4k for most homes). The cost of the test should be between $150 and $250 and should be done using electronic testing equipment (Sun Nuclear, Radalink...)
I would definitely use a professional home inspector rather than a relative or friend who may be a builder or have construction experience. Unless you do this every day you will not know everything to look for. Keep in mind that home inspectors are generalists and are not experts in any given field. If your inspector tells you to have a particular system further evaluated by a more qualified professional (HVAC, plumber, electrician) you need to do so.
Also, in my area with home inventories being very low homeowners are doing less with repairs for potential buyers. If the homeowner is unwilling to do any or certain repairs you should get a quote for the cost of the repair and determine if the house is still worth buying.
If you need to find a good inspector visit www.ashi.org. You can type in your zip code and get a list of qualified inspectors. When hiring an inspector I would look for someone who has been in the business at least 10 years, is an ASHI member and code certified.
Also, get a radon test. Your inspector should be able to perform this for you (at an additional cost). Radon is the 2nd leading cause of lung cancer and having a house professional mitigated is expensive (between $2 and $4k for most homes). The cost of the test should be between $150 and $250 and should be done using electronic testing equipment (Sun Nuclear, Radalink...)
charlestmann
Well-known member
Exactly, many buyers look at an inspection as a warranty. It is not! You are paying the inspector for his opinion of the house at that particular time. Think of the inspection report as a snap shot in time of the property.
All opinions are different. This is why hiring the right inspector is VERY important.
dieselgarage
Well-known member
- Joined
- Dec 18, 2012
- Messages
- 277
Find a first time home buyers seminar in your area.
Holt
Well-known member
Never use a realitor reccomened home inspector. Ask me how I know. Also don't let the excitement of finding the one blind you to obvious issues.
ratdoggy
Well-known member
1.Buy what you want. Because it's out there. DO NOT SETTLE FOR LESS
If you want a garage (of course you do) get one
2. Don't buy a 2 bedroom house or something with a weird floor plan
3. Scout the neighborhood and talk to the people who live there...Tell them you're interested in that area. They might know of a house that may go on market soon.
If you want a garage (of course you do) get one
2. Don't buy a 2 bedroom house or something with a weird floor plan
3. Scout the neighborhood and talk to the people who live there...Tell them you're interested in that area. They might know of a house that may go on market soon.
ratdoggy
Well-known member
I think you mean an appraisal. As a buyer you want someone to look at the house for you with no attachment to it.
38Chevy454
Well-known member
Most first homes are to get you started in a home ownership and get started to build credit and equity. You will be amazed at how once you are homeowner how easy credit will become - but use it wisely. Since the first home is not usually one you stay in for more than 5-10 years, I will say to think of the house for resale potential in future. Is it in a good neighborhood that should stay nice? Building a lot of new conmstruction around - are they nice more expensive single family homes, or is it low-rent apartments? Is the neighborhood in an area with mostly homeowners or rentals? All of this affects your home value and future sale potential.
You want a home that will stay up or increase in value, and be easy to sell once you move to a bigger home or different location. You can't go wrong with the std 3 BR/2BA/2 Car Garage for hitting the main portion of the market.
Good advice to use a good realtor, and have the inspection done.
You want a home that will stay up or increase in value, and be easy to sell once you move to a bigger home or different location. You can't go wrong with the std 3 BR/2BA/2 Car Garage for hitting the main portion of the market.
Good advice to use a good realtor, and have the inspection done.
ratdoggy
Well-known member
Remember the realtor IS NOT your friend. I looked at probably 70-100 houses my first time and probably 150 my second time. I wore out a couple of realtors. Remember you are spending a lot of money
Nope. I've bought homes in two states and neither would fund without inspection. They want to know if there are any problems--and require mold and chinese drywall inspection--that would render their collateral worthless. Maybe it's something more recent given the bubble or maybe there's variance by state or by property value. That's just my experience. And I'm not talking about FHA (but quick google seems that FHA requires them http://mortgage.lovetoknow.com/FHA_Mortgages_and_Home_Inspection_Requirements)
In fact, there have been articles down here where the lender won't fund unless you fix certain defects (particularly roof) prior to closing. http://therealestatecoconut.com/?s=inspection
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Home warranties are ripoffs, imho. I’d rather have the $500 plus annual cost in my pocket than give to those con artists. Google “home warranty class action lawsuit” and see what comes up. Deductibles and co-pays and caps render the realistic value to nothing. For the little they’ll do over a broken appliance for the average $500 premium paid you could in most cases just buy a new appliance.
Gary
Gary
Falcon67
Well-known member
This covers it. Get references on the inspector and ask if they keep their certs up, their background and when was the last time they were in class for updates.
Edit - all SAFETY violations should be fixed. Egregious code issues should also be addressed, but as above codes change. Our old house used 2x6 joists which are no longer "code", but tell that to a 80 year old house with no problems - and how would you "fix" that anyway, if nothing is broken. A/C+heat in a bathroom closet is not to code, but tons of older homes have that anyway and it's not a problem unless you retrofit. Old house will have toilets that are "not to code", etc, etc, etc.
Do NOT buy a house without a home warranty. Costs the seller little - under $500, usually a lot less. Make it a condition of sale and if they balk, walk. Also, drive your Realtor nuts and look at a LOT of houses. Hands on/eyes on education works.
Daughter, 2006, $55,000 house, inspected by sellers choice inspector, 6 months - dead AC/heat system. $8000 repair, covered by home warranty. I call BS on your ripoff.
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RECox286
Well-known member
Get a home inspection, and not just from a home inspector, but get
some or all of your friends, family, heck, have the janitor who takes
care of the school and people you meet on the street look it over !
The more the merrier... Obviously, you want to get as much information
as possible before the closing, rather than after. And don't think that
there is any property that has no flaws, b/c I've never seen one, not
even a brand spanking newly constructed, never been lived in house.
Fore warned is fore armed.
Uncle Bob
some or all of your friends, family, heck, have the janitor who takes
care of the school and people you meet on the street look it over !
The more the merrier... Obviously, you want to get as much information
as possible before the closing, rather than after. And don't think that
there is any property that has no flaws, b/c I've never seen one, not
even a brand spanking newly constructed, never been lived in house.
Fore warned is fore armed.
Uncle Bob
cburnscrx
Well-known member
What BS? It’s a simple statement of fact. In your daughter’s case she just got “lucky” so to speak because a major system broke in a short time frame and it worked out in her favor. Has she kept up the premiums since 2006? If so, how much has she shoveled towards insurance since then? How longer does she intend to continue to pay for coverage? I hope she quit while she was ahead.
Gary
cburnscrx
Well-known member
My best advice to anybody buying a home...learn as much as possible and do your own research...lots of reserch. Look at the year the neighborhood was built, school districts, median income of the area, growth patterns, shopping areas, and if applicable the HOA. Drive the neighborhood at night and in the morning. Look at what people are wearing, what they drive, how well the lawns are mowed, ect.
Remember, there is only one person looking out for YOU, and that's you! The realtor has their own interests, the seller theirs, the bank thiers, ect. They all have different agendas. Be on your toes and do your research beforehand. There's so much more available today than even 10 years ago, it's unreal.
Remember, there is only one person looking out for YOU, and that's you! The realtor has their own interests, the seller theirs, the bank thiers, ect. They all have different agendas. Be on your toes and do your research beforehand. There's so much more available today than even 10 years ago, it's unreal.
Duck tape Bill
Well-known member
I just went through the whole "1st time homebuyer" thing last summer when my wife and I moved to a larger place, and it was a very interesting experience for me...
My advice, as several people have already mentioned, is to see LOTS of houses. Not because you need to see everything that's out there, but because as you look at more and more houses you will get a better idea of what you want/need in a house. You will also learn to spot potential problems with houses much easier once you have walked through a couple dozen. It's easy to get caught up in the excitement of someplace new, even if it's not what you really want, and a real estate agent will always play on that emotion to get you to buy.
After looking for a while I totally changed the way I would look at a house... I tried to find all the things that were wrong with it first.... then I would look at the things that made it good. And be very careful about houses that have been "flipped," all of the ones we looked at had major issues that had been painted over so to speak.... but they also had nice shinny new kitchens/bathrooms to distract you from other things (bad roof/windows, termite/water damage, poorly designed/constructed additions ext.).
My advice, as several people have already mentioned, is to see LOTS of houses. Not because you need to see everything that's out there, but because as you look at more and more houses you will get a better idea of what you want/need in a house. You will also learn to spot potential problems with houses much easier once you have walked through a couple dozen. It's easy to get caught up in the excitement of someplace new, even if it's not what you really want, and a real estate agent will always play on that emotion to get you to buy.
After looking for a while I totally changed the way I would look at a house... I tried to find all the things that were wrong with it first.... then I would look at the things that made it good. And be very careful about houses that have been "flipped," all of the ones we looked at had major issues that had been painted over so to speak.... but they also had nice shinny new kitchens/bathrooms to distract you from other things (bad roof/windows, termite/water damage, poorly designed/constructed additions ext.).
ckadams00
Well-known member
1. Home inspection as everyone has said, money well spent.
2. Go to the library (or Amazon, but you're gonna need the money once you move in!) and get a simple "first time homeowners handbook" - there are tons of them. It is a great idea to spend a few nights reading up on how the systems in a house work - I was clueless on how the systems in my home operated when I first started shopping - it will give you more knowledge on things to look for and questions to ask of the inspector and the previous owners.
3. There is a lot of wisdom in the statement "the WORST house in a great neighborhood is worth more than the same priced, BEST house in a bad neighborhood". Doesn't mean you should be shopping for a money pit, but you can't fix neighbors or location.
4. Ask about things that are going to need to be fixed or replaced in the next 3-5 years - roof, plumbing, old wiring or electric panels, etc. Most people don't plan on this - it's good to know you will need a $6K roof in 2 years going in.
5. Be active in the process, don't assume the broker or anyone else in the process is looking out for your best interest.
6. Look at the HOUSE and the PROPERTY. Not the paint, not the carpet, not the artwork. Took forever to get my wife to understand how cheap and easy it is to paint the walls vs. putting in another bathroom.
7. If you are part of a HOA ask to see those details and costs in advance.
Good luck!
2. Go to the library (or Amazon, but you're gonna need the money once you move in!) and get a simple "first time homeowners handbook" - there are tons of them. It is a great idea to spend a few nights reading up on how the systems in a house work - I was clueless on how the systems in my home operated when I first started shopping - it will give you more knowledge on things to look for and questions to ask of the inspector and the previous owners.
3. There is a lot of wisdom in the statement "the WORST house in a great neighborhood is worth more than the same priced, BEST house in a bad neighborhood". Doesn't mean you should be shopping for a money pit, but you can't fix neighbors or location.
4. Ask about things that are going to need to be fixed or replaced in the next 3-5 years - roof, plumbing, old wiring or electric panels, etc. Most people don't plan on this - it's good to know you will need a $6K roof in 2 years going in.
5. Be active in the process, don't assume the broker or anyone else in the process is looking out for your best interest.
6. Look at the HOUSE and the PROPERTY. Not the paint, not the carpet, not the artwork. Took forever to get my wife to understand how cheap and easy it is to paint the walls vs. putting in another bathroom.
7. If you are part of a HOA ask to see those details and costs in advance.
Good luck!
Go to your local library and borrow "Home Buying for Dummies". When I bought my first house, I'd been out of college for 3 years since I'd taken a class entitled "Real Estate Financial Analysis". The book was as helpful as a college class on real estate. After I bought my first house, I let numerous friends borrow my "Home Buying for Dummies" book.
20% down payment is a good start. A decent boundary survey is something nobody ever suggests as a priority item, but something every mortgage company will want at closing.
Here's a tip for finding a survey company: Call five survey companies, ask them "If you were buying a piece of property at this address, who would you call for a survey?" This question should get you a professional opinion for a quality surveyor without evoking the "We don't do residential work" answer.
I didn't do the normal "buy a starter home", move in 3-5 years routine. I bought the biggest home I could possibly afford (on my meager income), on the best lot I could find, in a great location with the intention of hanging on to this piece of property for 20+ years. It's been 15 years, and my upgrades are helping me keep pace with the neighbors who have demolished and rebuilt homes. I refinanced once to a lower interest rate, and paid off the resulting mortgage early. I'm watching, waiting, and slowly amassing the down payment for my "summer home", my first home will then become my "winter home".
20% down payment is a good start. A decent boundary survey is something nobody ever suggests as a priority item, but something every mortgage company will want at closing.
Here's a tip for finding a survey company: Call five survey companies, ask them "If you were buying a piece of property at this address, who would you call for a survey?" This question should get you a professional opinion for a quality surveyor without evoking the "We don't do residential work" answer.
I didn't do the normal "buy a starter home", move in 3-5 years routine. I bought the biggest home I could possibly afford (on my meager income), on the best lot I could find, in a great location with the intention of hanging on to this piece of property for 20+ years. It's been 15 years, and my upgrades are helping me keep pace with the neighbors who have demolished and rebuilt homes. I refinanced once to a lower interest rate, and paid off the resulting mortgage early. I'm watching, waiting, and slowly amassing the down payment for my "summer home", my first home will then become my "winter home".
chicken89
Well-known member
My biggest mistake in our first house was a HOA. They are the only reason we moved. Loved the neighborhood, loved the neighbors, could afford the house. This past year, the HOA decided that they wanted to enforce the certain rules that they had not enforced for the previous 6 years. ... and they realized that the covenants didn't have a default answer for property change request (rule stated they had 30 days to approve a request, but there was no default answer if they didn't approve the request). when i went to the property management company stating that the board members were breaking the same rules they were citing me for, management company said that it was up to the board to decide who they wanted letters sent to. upon hearing that, we got a realtor to sell our house. 2 days later we had an offer, 30 days after that we were out of our house!
HOAs are not bad, but they can be worst enemy because there are typically very few laws regulating them and board members (state attorney general told me that HOA are civil matters, and thus, the state cannot take action). neighbors who loved the area moved out for same reason... now most of the houses in the subdivision are rentals. i will personally never again live in a house governed by a HOA.
to end with a paraphrased quote from tv show Duck Dynasty: "I live in a house where I have to pay someone to tell me what i can and cannot do in my own house? no, that is not right!"
HOAs are not bad, but they can be worst enemy because there are typically very few laws regulating them and board members (state attorney general told me that HOA are civil matters, and thus, the state cannot take action). neighbors who loved the area moved out for same reason... now most of the houses in the subdivision are rentals. i will personally never again live in a house governed by a HOA.
to end with a paraphrased quote from tv show Duck Dynasty: "I live in a house where I have to pay someone to tell me what i can and cannot do in my own house? no, that is not right!"
indyokie
Well-known member
My advice, if you don't like something when you look 1st at it, - ( close to highway etc ) you'll NOT get used to it.
cburnscrx
Well-known member
Everybody has their own standards when it comes to HOA's. Review the rules, and make sure you are okay with all the rules, even if they're not currently inforced. Boards change all the time. Do you want to build that shed? Make sure they aren't banned first. Personally I really like HOA's, as they protect you from the idiot who thinks it's okay to leave ladders outside next to his garage, or not mow the lawn, or not maintain their property. My home is an investment, and I certainly don't want somebody ruining it for me by not taking care of the property in the same way the rest of us do. Some people are meant to be in HOA's, some are not. You'll know if you are or not.
Slednut
Well-known member
I don't know about SW Washington but here in Central Washington the wind blows from the NW all the time. Having the back yard down wind is a big must have.
dreamingmuscle
Well-known member
1. Home Warranty's are usually not worth the money. Most of the time you can get the seller or real estate company to throw in a one year plan.
2. Get all the features you want and can afford.
3. Find your own professionals. IE. Home inspector and Appraiser.
4. Title insurance is a con game. Yes you need it, but it shouldn't cost more then $200.00 And most of the time the broker handling your transaction also owns the title insurance company they want to use. So don't be afraid to shop for it. Get real here. Your buying insurance just encase your Realtor and title company didn't do their job right. They are the ones who should be paying for it.
Some good reading on the settlement process.
http://info.loan.com/home-loans/why-do-i-need-title-insurance-and-what-should-it-cost.html
http://www.federalreserve.gov/pubs/settlement/
5. You don't need mortgage pay off insurance. If you feel you need some protections for your loved ones buy a real life insurance policy. You can get twice the coverage for half the price.
2. Get all the features you want and can afford.
3. Find your own professionals. IE. Home inspector and Appraiser.
4. Title insurance is a con game. Yes you need it, but it shouldn't cost more then $200.00 And most of the time the broker handling your transaction also owns the title insurance company they want to use. So don't be afraid to shop for it. Get real here. Your buying insurance just encase your Realtor and title company didn't do their job right. They are the ones who should be paying for it.
Some good reading on the settlement process.
http://info.loan.com/home-loans/why-do-i-need-title-insurance-and-what-should-it-cost.html
http://www.federalreserve.gov/pubs/settlement/
5. You don't need mortgage pay off insurance. If you feel you need some protections for your loved ones buy a real life insurance policy. You can get twice the coverage for half the price.
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kingston250
Member
- Joined
- Mar 27, 2013
- Messages
- 5
Searched the different hopes and find 2 or 3 which you think best and price is also reasonable then discuss here with all of us. this method is helpful for you to find a good home. i hope you can find a good one.
There is a lot of great advice here. I would also echo the recommendation of picking up the "Home buying for dummies" book. A few other things to consider. Typically people say that you will be in your first house for 5 years (buy 5 years goes by quickly and is probably closer to 7 years). Make sure you buy a house will good resale value. That means you really need to check the schools out even if you don't have kids. Not sure how it is now but it used to be that people qualify to borrow for a lot more than they should and can very easily be house poor. Avoid this as you want the house to be a blessing. Create a budget and figure out how much you can comfortably afford while paying a mortgage (and still having a life). There are a lot of things like water, sewer, electricity, property taxes, etc. that you have never had to pay before. Also, go by any potential house a lot at all times of the day and all days of the week. When I was between houses I rented this house that looked perfect for my needs. As soon as I moved in I realized that the school across the street meant that my driveway was blocked by cars every weekday morning from 7:30 - 8:30 and slow traffic along the street while kids were being dropped off. With interest rates as low as they are the math may be a bit off, but it used to be that every additional $50k that you borrowed meant the monthly mortgage would increase by $300/month. That is a good meter when you are comparing houses of different values. Oh, and when you do get your first house it takes about 6 months to realized that the "surprise gigantic bill" that you fear is going to show up never does!
You've done a good thing by asking here. You're already ahead of more than half the buyers out there.
Bunch of Do's: Do take your time. Do get multiple references for any service, inspection, application, whatever you do. Inspector, surveyor, mortgage company. Stay absolutely on top of every step someone else is supposed to do for you. (Our first house, back in '85, we asked the mortgage officer to lock in our rate. She didn't, we never questioned, but got to closing 60 days later, and she had failed at the game of waiting for rate to drop back by 1/2 a percentage point - we were in the lawyer's office with papers that meant larger immediate & long term expenses that we hadn't planned on. But we couldn't very well NOT sign them and pay the $$; the selling party needed to close on their next house the next day. It was a catch-22; sign the closing at the newer rate, and take it in the bank account, or not sign, and potentially be subject to breach of the contract we had offered, when the other party couldn't go forward with theirs, in a domino effect. Very luckily, our agent was also a close personal friend and went to bat for us with her boss at her realty office; he went to he mortgage company & said 'make it right, or we can move lots of our business recommendations elsewhere' 7 days later we signed new papers for all the original rates.)
Ask every question you can think of, ask every person you come in contact with, what was right, wrong or anything about their experiences. Ask them what they would do better next time.
Anything a seller or seller's agent tells you, fact-check it somehow, or or get it in writing, or both.
Remember to breathe. Deeply. Often.
Bunch of don'ts: Don't buy the first place you see. Don't fall in love with a place - it'll blind you to faults. Never offer the asking price - negotiate, and negotiate like a madman. It's your money. Don't hurry the process. Don't be afraid to walk away from a deal that's going bad to worse; (Our current house, bought 23 years ago, we got into a bidding war with another couple; they came out on top, but then a couple days later learned they were backing out because they couldn't secure financing. I let a realtor tell me to leave my last offer on the table, she suggested it wouldn't be 'right' for me to go back to my original lower offer. Now, I say screw that; It should have been just like a new round of offer-counteroffer. Coulda saved $10K or more in purchase price)
Be prepared for stress.
Bunch of Do's: Do take your time. Do get multiple references for any service, inspection, application, whatever you do. Inspector, surveyor, mortgage company. Stay absolutely on top of every step someone else is supposed to do for you. (Our first house, back in '85, we asked the mortgage officer to lock in our rate. She didn't, we never questioned, but got to closing 60 days later, and she had failed at the game of waiting for rate to drop back by 1/2 a percentage point - we were in the lawyer's office with papers that meant larger immediate & long term expenses that we hadn't planned on. But we couldn't very well NOT sign them and pay the $$; the selling party needed to close on their next house the next day. It was a catch-22; sign the closing at the newer rate, and take it in the bank account, or not sign, and potentially be subject to breach of the contract we had offered, when the other party couldn't go forward with theirs, in a domino effect. Very luckily, our agent was also a close personal friend and went to bat for us with her boss at her realty office; he went to he mortgage company & said 'make it right, or we can move lots of our business recommendations elsewhere' 7 days later we signed new papers for all the original rates.)
Ask every question you can think of, ask every person you come in contact with, what was right, wrong or anything about their experiences. Ask them what they would do better next time.
Anything a seller or seller's agent tells you, fact-check it somehow, or or get it in writing, or both.
Remember to breathe. Deeply. Often.
Bunch of don'ts: Don't buy the first place you see. Don't fall in love with a place - it'll blind you to faults. Never offer the asking price - negotiate, and negotiate like a madman. It's your money. Don't hurry the process. Don't be afraid to walk away from a deal that's going bad to worse; (Our current house, bought 23 years ago, we got into a bidding war with another couple; they came out on top, but then a couple days later learned they were backing out because they couldn't secure financing. I let a realtor tell me to leave my last offer on the table, she suggested it wouldn't be 'right' for me to go back to my original lower offer. Now, I say screw that; It should have been just like a new round of offer-counteroffer. Coulda saved $10K or more in purchase price)
Be prepared for stress.
justanengineer
Well-known member
I know you can.
x2. If you NEED to pay for a home inspection, credit check, closing costs, or other fees there is something wrong with the deal. Usually it means you didnt bring enough $$$ to the table. Being your first house, I wouldnt worry about it. Expect to make mistakes and hope these are the larger ones bc theyre all fairly minor.
My top suggestions would be to 1. Dont be in a rush....visit, visit, and visit some more. Dont let anyone rush you. Once you think youve found "the one," visit it several times over a week or two period. Park nearby and drive through the neighborhood whenever you can to get a really good feel for the people and culture. Is it full of old folks dieing off and being replaced by low income rentals or ghetto thugs? Is it young professionals? Is it going to be a bad neighborhood in a few years? Make sure you see the inside of the house multiple times. You WILL notice more details every time you go if you look. 2. Every time you go to the house, take a camera and take as many pics as possible, then go home and review them carefully. Pics say 1000 words, and you will notice things in them that you missed in person, trust me on that one. 3. Consider investment possibilities and real world resale. You wont live there forever, and speaking personally I want the family to make money if I dont. Are there any houses that are seriously undervalued due to bad appraisals, bad curb appeal (usually easily remedied), or ones that show bad due to messy occupants? Mine had a bad (low) appraisal and a bad odor which combined to ~30% difference in my total $$$ in under the current value (I bought cheap then with a bit of work it appraised high). Also, please realize the difference between selling price and appraised value. One is real, the other not so much. In some areas theyre close, in others the difference is sizable with one not always being above/below the other.
I'd disagree with you on this one to an extent, but I may be slightly misunderstanding you. $200 is rather cheap IMO for title insurance, but again IMO its the most valuable "fee" you pay in the process, especially on a new home. The reason its important is bc realistically there is NO possible way to ensure that a contractor will not take out a lien on your property after the sale has occured, esp on short sales, and in many states contractors have several months to file one. If you dont have it or dont have enough of it, you could pay a gc several hundred thousand for a house and if he decided not to pay his subcontractors, you could potentially be on the hook for several hundred thousand more.