Finding the “right”
house
When buying a home there are many different
ways to go about finding an available house that will suit your
housing needs:
Word of mouth – Inform your friends and
acquaintances that you are looking for a house.
They may know somebody who has just put their house on the
market, or will be in the near future.
Newspaper ads – Searching
the classifieds is a good way to find leads. Open houses are also announced in the newspaper which will
allow you to see different houses available in certain areas. Here
is a link to a website that provides you with direct links to the
local real estate classifieds of newspapers: Newspaper Classifieds
“For sale” signs – Driving around the
neighborhood you are looking to buy in is a good way to find homes
that are for sale by owner and not listed. Here is a source for
you to search for
sale by owner homes
Home Buyer Guides
– There are many housing publications that are available at
convenience stores, newsstands, and supermarkets that list and
have descriptions of local houses for sale.
Foreclosure homes
- There are many types of foreclosure homes for sale, such
as: HUD Homes, VA Foreclosures, Government Foreclosures, Fannie
Mae Foreclosures and Freddie Mac Foreclosures. Search here
for all of these types of foreclosure
homes.
How
a real estate sales professional can help
Frequently,
the first person you consult about buying a home is a real estate
agent or broker. Although real estate brokers provide helpful
advice on many aspects of home buying,
they may serve the interests of the seller, and not your interests
as the buyer.
The
most common practice is for the seller to hire the broker to find
someone who will be willing to buy the home on terms and
conditions that are acceptable to the seller.
Therefore,
the real estate broker you are dealing with may also represent the
seller.
However,
you can hire your own realtor, known as a buyer’s broker, to
represent your interests.
Also,
in some states, agents and brokers are allowed to represent both
buyer and seller.
Even if the realtor represents the seller,
state real estate licensing laws usually require that the broker
treat you fairly. If you have any questions concerning the
behavior of an agent or broker, you should contact your State’s
Real Estate Commission or licensing department.
Sometimes,
the real estate broker will offer to help you obtain a mortgage
loan. He or she may also recommend that you deal with a particular
lender, title company, attorney, or settlement/closing agent. You
are not required to follow the real estate broker’s
recommendation.
You should compare the costs and services offered
by other providers with those recommended by the real estate
agent.
A real estate
agent can provide you with a broad range of services, including
the following:
-
use your “wish list” to generate a computer printout of
houses that meet your specifications;
-
show you houses that meet your requirements;
-
provide you with information about a community, including
the prices and characteristics of houses in the area, the
location of schools, property tax rates, unusual building code
regulations, and availability of community services;
-
present
your offer to the seller.
If
you do not have a realtor yet, you can use this free service to
help you
find a realtor or search this directory
real estate agents.
Comparison
shopping
First time
homebuyers look at around 6-15 houses before settling on one.
Comparison shopping is an important part of the home-buying
process, you can use these guides to try and make it easier to
arrive at a house of your choice.
Use
worksheet 7 to help you compare homes for sale.
Keeping records
It’s helpful to keep records of all the
houses you see. This will allow you to compare features and prices
of the various houses you have seen.
Include the
observations about the interior and exterior of each house.
Make sure that you are judging the house itself and not the
furnishings. Taking
pictures may also be helpful for at-home comparisons.
What to look for
Look at every
house critically. Rate
houses based on your own needs.
Don’t be afraid to ask questions of the real estate agent
and the owners, and expect satisfactory, straight-forward answers.
Physical details.
Start with the
outside:
-
Size and age
of the house,
-
Structural
condition and outside maintenance,
-
Size of the
lot,
-
Landscaping
Then move inside:
-
How many rooms and baths are on each
floor?
-
Is there adequate storage space?
-
Is the basement finished?
-
What built-in appliances are
there?
-
Is the kitchen functional?
-
Is there central or room
air-conditioning?
-
Does the basement flood or the roof
leak?
Construction details. Whether
the house is new or old, both the quality of the building
materials and the craftsmanship, as well as the condition, are
important considerations. Is
the house well insulated? Are
the windows energy efficient?
Is the roof in good condition?
Does the house appear to have been well maintained?
Major
systems Find out what type of fuel is used in the house. Check to see if the plumbing, heating/cooling and electrical
systems in working order, or if they need to be replaced.
Financing. The MLS
listing printout provided by the real estate agent will include:
- the asking price
- the mortgage balance
- the seller’s monthly payments
- whether the mortgage is assumable
- if relevant, how large a second mortgage the seller is
willing to take back
Narrowing the field
You should spend a fair amount of time
looking at houses in the area you’ve chosen.
The more houses you look at, the more knowledgeable you
will become about the market in your area.
Once you’ve
found a house you like and it is in your price range, make sure
you go back at least one more time.
Tour the neighborhood on different days to really get a
feel for it. Don’t
be afraid to talk to people who live there and find out their
feelings on the area.
Take
your time, this is a very important decision you will be making.
>Next>
Learn
how to negotiate a price on the house
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