Finding the Right Home or Property
First things first
The first thing to do is to establish your budget. Make sure you
consider allocating budget dollars for repairs, furnishings, and
moving.
The second thing to do is to really consider the needs of everyone
in your family…both current and future needs. Make sure you
have sufficient space to accommodate your family's lifestyle.
How to look at homes
Bring a notebook, a camera, and a flashlight…and be as
nosy as you possibly can! After all, they are expecting that, and
you need to know everything you can if you're going to make the
best decision. Make sure you allot enough time at some point to
physically test each light switch, faucet, drawer, door, and window.
Remember, at some point you're going to want to identify everything
that doesn't work with the properly if you intend on moving forward
with it.
TIP: Consider hiring a professional home inspector.
It is highly recommended that you have a professional home
inspector evaluate the home you are interested in. Generally, an
inspector is called in after you go "under contract".
But you need to make sure that any purchase offer you sign includes
an inspection clause or other language that makes your purchase
contingent upon your satisfactory inspection of the property. Of
course, sometimes defects or issues are discovered, and often this
becomes a negotiating point with the sellers. Although a home inspector
isn't there to tell you whether or not they think you are getting
a good value, they will make you aware of repairs that are recommended
or necessary so that you see the full picture.
There a couple of national associations that can help you find a
qualified home inspector:
http://www.nahi.org/inspector/default.asp
http://www.ashi.org/find/
We definitely recommend attending the home inspection yourself,
although they will issue a written report if you cannot attend.
In addition to the regular inspection, you may also consider specific
tests to check for things like mold, radon gas, termites, and the
like.
Questions you might consider when evaluating
a property:
- There are many location questions to consider, including:
A. Is it a good location in terms of proximity to transportation?
B. Is it a safe location in terms of crime rate?
C. Does it offer the degree of privacy, or conversely-exposure,
that you are looking for?
D. Are there any noise issues in the area?
E. Are there any traffic issues to consider? Will nighttime headlights
be shining into your office or bedroom?
F. How are the views from the key areas?
G. Which direction does the property face? Is direction of sunlight
an issue?
- You should always ask someone why they are selling…and then
try to find out the real reason. J
- Is there any cloud or conditions on the title?
- Are there any specific inclusions or exclusions?
- Is the property subject to a Right of First Refusal?
- Are there any Homeowner's Association or Common Community Interest?
What kind of fees are associated with them? Are there any covenants
that the neighborhood is bound by? Will they limit any of your
planned activities?
- Is there any knowledge of limitations on your ability to improve
the property?
- Is there any financing options the seller may have for you?
An assumable loan? A willingness to "carry" some of the purchase
price?
- Are there any assessments or governmental interests in play?
- Any special rights to consider? Parking? Water? Minerals?
- In additions, for existing construction:
A. Ask about all building systems, including: the foundation,
roof, electrical, plumbing, heating and air conditioning, windows,
etc.
B. Determine the age of the structure and the history of renovations
and improvements.
C. Ask if there is any knowledge of code violations.
D. Ask how much utility bills tend to run each month.
E. Ask if a home warranty is being offered.
TIP: And remember: if a home warranty is not being offered,
you should ask for it in your offer. They can really provide some
piece of mind by protecting against some unexpected repair bills.
- For new construction, ask about any down payments they're asking
for, and the specific plan for the area-including timelines. When
it comes time to make an offer, we'll help you consider other
factors too. We're simply suggesting some initial inquiries you
might consider.
Service providers you might talk to:
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