1. How do I begin the process of looking for a home?
The first thing you should do is begin focusing on what you're looking for in a home. You can start by establishing priorities in the following three areas:
Location: Are you relocating to a new town because of a new job, or to be closer to your current job: How will the location of schools, shops, and transportation affect your choice of neighborhoods?
Personal tastes: How large a home do you need? What style of architecture do you prefer? On what kind of lot? Depending on where you live, you may have a choice of homes in dozens of styles, sizes, and settings.
Budget: How much home is it wise for you to own?
Drive through neighborhoods that appeal to you to see what's available. Read the real estate listing in the newspaper to learn about current prices in the areas you're considering. Talk to friends about the features that you'd really like to have in your home. The more knowledgeable you become, the better you final decision is likely to be.
Then sit down and consider carefully the things you're looking for in a home. The Homebuyer's Wish List worksheet (See Section VI, Helpful Tips and Forms) that follows is a good starting point. When you've filled it out, you'll begin to get a good ideal of what you'd like your dream home to be.
2. How do I know for sure how much house I can afford?
We've found that affordability is probably the single biggest concern of today's first-time homebuyers. Given the wide range of media coverage regularly devoted to the issue, it's not surprising that many young families wonder how long it will take them to afford their first home.
Our advice: Don’t sell yourself short. Talk to a mortgage broker or lender. There are many financing options available today, and some include low down payments. Your lender will help find an option that fits your budget, and you may be surprised at just how much home you can afford.
3. What should I think about when I'm deciding which community I want to live in?
Good city services, nice parks and playground facilities, convenient shopping and transportation, a track record of sound development and good planning--these are just a few consideration that are important to many people when they choose a community in which to live.
4. How can I find out what homes are selling for in a given neighborhood?
Home sales are a matter of public record. The Recorder's Office, a local residential appraiser, and the planning department for the locality are all resources the buyer can call on. All can be searched for recent sale histories, sale prices (or average sales prices), time on the market and other listing information for sales in any given area.
5. How can I find out what my property tax bill will be?
Usually, the total amount of the previous year's property taxes is included on the listing information sheet for the home you're interested in. If not, ask to see the seller's receipt.
Remember that tax rates change from year to year, so the previous year's bill should be considered simply as a "ballpark" figure of what you would pay. For a more precise projection call the local assessor's office for assistance.
6. When I start visiting homes, what should I be looking for the first time through?
The house you ultimately choose to call home will play a major role in your family's life. A home can be an excellent investment, of course, but more importantly, it should fit the way you really live, with spaces and features that appeal to everyone in the family.
As you look at each home, pay close attention to these important considerations:
- Is there enough room for you now, and in the near future?
- Is the home's floor plan right for your family?
- Is there enough storage space?
- Will you have to replace the appliances?
- Is the yard the size that you want?
- Are there enough bathrooms?
- How much maintenance and/or decorating will you need to do right away? later?
- Will your present furniture work in this home?
7. How many bedrooms should I be considering?
Whether you are married or not, or have kids or not, spare bedrooms come in handy when family and friends come to stay. And when you're not having guests, extra bedrooms are useful as a library, den or TV room.
Another good reason to choose a home with extra bedrooms: Extra space will make your home more appealing to a larger number of interested buyers when it comes time to sell.
8. Is an older home as good a value as a new home?
It's a matter of personal preference. Both new and older homes offer distinct advantages, depending upon your unique taste and lifestyle.
New homes generally have more space in the rooms where today's families do their living, like a family room or activity area. They're usually easier to maintain, too.
However, many homes built years ago offer more total space for the money, as well as larger yards. Taxes on some older homes may also be lower.
Some people are charmed by the elegance of an older home but shy away because they're concerned about potential maintenance costs.
9. What do I need to bring along when I'm looking at homes?
Bring your own:
- Notebook and pen for note-taking
- Flashlight for seeing enclosed areas
- Tape measure for checking room sizes, clearance, etc.
Be prepared to "snoop around" a little. After all, you want to know as much as possible about the home you buy. Sellers understand that because their home is on the market, it will be looked over pretty thoroughly.
If you need to go back to a home for another look, most homeqwners will be happy to schedule an appointment. Also, be sure to ask any questions you have about the home, even if you feel you're being nosey. You have a right to know.
10. What should I ask about each home that I look at?
As a rule of thumb, ask any questions you have about specific rooms, features, or functions. Pay particular attention to areas that you feel could become "problem" areas--additions, defects, areas that have been repaired and above all, if you don't feel your question has been answered, ask until you understand and are satisfied.
11. How many homes should I look at before I buy?
There is no set number of homes you should look at before you decide to make an offer on one. That's why determining as many details as possible up front is so helpful. The perfect home may be waiting for you on your first search. Even if it isn't, the house-hunting process will help you get a feeling for the homes in the community and narrow your choices to a few homes that are worth visiting.
If you're looking in more than one community, try to make the most of each house-hunting search. Also visit our Relocation Wizard in this section of the site.
12. What questions do I ask a home seller?
When you find a home you may be interested in buying, make sure you ask the owner the following questions:
- How much money do you pay for monthly utilities?
- Have you had any problems with water or dampness in the basement?
- Are there any defects or problem areas that need to be fixed right away?
- How old is the furnace and central air conditioning system?
- How old is the roof? Have you experienced any leaking?
13. How do I know I'm getting the best value for my money?
A professional appraisal is the best way to tell if a home is priced fairly. An appraisal is an unbiased opinion of a property's value based on its style and appearance, construction quality, usefulness, and other factors, including the value of comparable properties nearby.
When you apply for a mortgage, the lender will have a professional real estate appraiser perform an appraisal of the property. This is a safeguard that ensures you won't pay more than the property's appraised value.
14. I'd like to have a professional look at the home before I buy it. What does a home inspector do?
For your own safety, and to make sure you're getting your money's worth in the home you choose, using a professional home inspector is highly recommended. A home inspector will check a home's plumbing, heating and cooling, electrical systems, and look for structural problems, lake a damp or leaky basement.
Usually, you call an inspector immediately after you've made an offer on a home. However, before you sign any written offer, make sure (or have your attorney make sure) that it includes an inspection clause or other language which says that your purchase obligation is contingent on the findings of a professional home inspector.
Your home cannot "pass" or "fail" an inspection, and your inspector will not tell you whether he or she thinks the home is worth the money you are offering. The inspector's job is to make you aware of repairs that are recommended or necessary.
A seller may be willing to renegotiate a price to accommodate needed repairs, or you may decide that the home will take too much work any money. A professional inspection will help you make a clear-headed decision.
In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association.
15. Should I be present during the inspection?
Yes. It's not required, but it is very much to your advantage. You'll be able to clearly understand the inspection report, and know exactly which areas need attention. Plus, you can get answers to many questions, tips for maintenance, and a lot of general information that will help you when you move into your new home. Most important, you'll see the home through the eyes of an objective third party.
16. Are there any other inspections that I need to have done?
In addition to the overall inspection, you may wish to have separate tests conducted to check for termites, or the presence of radon gas. Check the phone book for information about these tests, and companies in the area that perform them.
17. Do I need to use a lawyer to buy a home?
Because the legal contracts and other paperwork involved in buying a home are complex, and can be confusing to the general public, many people prefer to work with an attorney.
Your attorney will review contracts, make you aware of special considerations and potential problems, and can accompany you to the closing, to help make everything go as smoothly as possible. If you don't know a real estate attorney, look in our Related Services section for a list of vendors which can provide you with the names of several attorneys in the community.
18. Do I need to talk to my insurance agent?
Yes, and the sooner, the better. Most insurance professionals have a lot of experience in working with home owners, and can offer useful tips about home ownership, particularly regarding home safety and keeping your premiums low.
Once you've found a home, work together to develop a homeowner's policy that meets your individual insurance needs. You'll need to bring your paid-up policy for your mortgage lender when you come to closing.
19. How do I determine the amount of my initial offer?
There really is no rule to use in calculating a realistic offer. Naturally, the buyer wants the best value and the seller wants the best price, but negotiations can be influenced by many factors, such as a seller who may be changing jobs and wants to sell quickly, or a buyer who really wants a specific home.
After you've looked at the home's features, asked questions, and checked comparables, you should have a good idea of what the home's value is in the current market. Consider what you can afford, and make an offer that you consider to be fair.
Most buyers and sellers negotiate on price, with both sides "giving" a little until both agree. When the price is agreed upon, both parties will initial the paperwork.
At that point, you typically will begin the process of arranging for an inspection and applying for a mortgage.
20. Is there any way I can protect myself against emergency repair bills in my new home?
Yes. Home warranties offer you protection against many potentially costly problems not covered by your homeowner's insurance. They've become increasingly popular in recent years, and for good reason: the coverage can save you thousands in the event of a major mechanical breakdown, at a time when your cash reserves have been depleted by your down payment and moving expenses. Visit our Related Services section to select from a list of quality home warranty services.
21. What should I look for on my final walk-through?
In most cases, you'll be given the opportunity to inspect the home immediately prior to closing. This time, it's important to check on any work the seller agreed to have done in response to your initial inspection. You should also carefully check the condition of walls and ceiling from which window treatments, pictures, or any other attached furnishings have been removed. If you find any problems, don't hesitate to bring them up at the closing. It's the seller's responsibility to correct them.
22. What will happen on closing day?
- The lender's agent will ask for your paid home insurance policy.
- The closing agent will list the adjustments. These include the money you owe the seller (the remainder of the down payment, prepaid taxes) and what the seller owes you (unpaid taxes, prepaid rent).
- You will sign the mortgage. This gives the lender legal right to the property if you don't make your payments.
- You will sign the mortgage note, the promise to repay the loan in regular monthly payments.
- You will get title from the seller in the form of a signed deed.
- The lender's agent will collect the closing costs from you and give you a settlement statement of all the items you have paid for.
- The deed and mortgage will be recorded in the town or county Registry of Deeds.
23. Is there anything I should do immediately after closing?
The first thing you'll want to do is have the locks changed. Also, put your deed and other important paperwork from the closing in a secure place, preferably a safe deposit box. Even though it's all on file with the county, it's smart to know where your copies are and have access to them at all times.
24. Should I move myself or use a moving company?
In almost every case, you can save yourself time and energy by using a reputable moving company to help you move.
Ask your agent, friends, and co-workers for recommendations, then get estimates from several companies. Don't choose a mover based on price alone--consider the reputation and professionalism of the company, too.
Work closely with the moving company to coordinate your efforts and your move will be achieved with premium efficiency.
