Home Buying Thoughts that we Forget

March 26, 2009
Matt Isleib

 

When we are in the market to purchase a home we often focus on the basics. You need to secure a mortgage, then you need to find a good Realtor and finally we go out on the joyous journey of finding a place to hang our hat. Seems simple right? Well it does not have to be difficult.

 

It is true that getting a mortgage that suits your needs is the first step and that will lead you to find a Realtor and start the search to find a home. Those are extremely important and should be first. However we often get wrapped up and enthralled with finding a new home that we do not think of the “other” important things to consider. We will refer to these other things to consider as the “nuts and bolts” of the home purchase.

 

 

·         Look for potential red flags in your home inspection.  Most used homes are in some way in need of repair. Minor issues are just that but you need to be cautious of major issues such as major house settlement, foundation cracks, high radon levels, lead paint, underground storage tanks, insects etc.

·         Check out the neighborhood and surrounding area. Look and see what is around your new home. Is a school around the corner? Are there any transfers or dumping stations that could cause a funky odor?

·         When you find a home you will know what the current taxes are on that home. Always check with that town or city tax assessor’s office to see if there are already approved tax increases. Sometimes tax hikes are phased in so checking this out is important. You may also want to see when the last time the town or city had assessed their property values to determine if a new assessment is coming up.

·         If you find yourself looking at a home and envisioning a remodel or addition it is prudent to contact the building department or planning and zoning. You may find out that the home you are looking at is on a variance and no additions can be made.

·         Be aware of the demographics of the neighborhood. Are you buying a cape style home in a neighborhood full of colonial style homes? It may affect your re-sale value in the future

·         Try and get the “history” so to speak of the house. Are the sellers the original owners? How many owners have there been? Asking these questions will also give you an idea as to what changes or renovations have been made to the home.

·         Make a list and anticipated time frames of upgrades or repairs that will need to be done. Will you need to paint the house in the next couple of years? How old is the furnace or the hot water heater? What kind of condition is the central AC unit in? How old is the roof? Is there extra cost associated for upkeep of a pool or Jacuzzi? You need to think of the other expenses that will or may arise soon after buying a home.

·         Take a drive by the home at different times of the day. Depending on where you are buying you may want to see what the traffic situation is. Obviously if you are looking at a home on a cul-de-sac the it is not an issue

·         Last but not least. You need to remember that when you are buyer at some point you are a seller. This is simply enough said. If the home you are looking at has been on the market for a long time look into why? As of now we are in a financial crisis so long listing times are more normal but just keep in mind and inquire if the home has been listed for a long time because we are in a buyer’s market or are your inheriting someone else’s problem?

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