New home buyer tips?

[96Firebird]

I'm just starting the home-buying process for the first time, and while it is a bit overwhelming, I want to learn as much as I can and avoid costly mistakes. I have a realtor, recommended to me by my sister. I am going to get pre-approved next month, because my current lease doesn't end till the end of May and I don't want to be paying mortgage + rent for too many months. Looking for any advice a first-time home buyer should hear. So far I've heard I shouldn't buy the best house in a bad neighborhood, rather a decent house in a decent neighborhood. I'm going to go look at a few open houses this weekend, just to get an idea of what's what and get the ball rolling.

Any other advice is appreciated, let me know if there are any questions.

 

[Kaido]

Outside of online research, the first thing I always do is pick up a "Dummies" book for whatever topic I'm researching. It's basically a lightweight table-of-contents for what you need to know:

http://www.amazon.com/Home-Buying-Du...dp/B0077FD8WI/

Other than that, get a good inspection done to see what the issues you'll be facing are. Make sure you are at the home when the inspection is being done so that you can talk about the problems with the house (aka the time, money, and effort you'll be spending in the future).

 

[Cougit]

...

Other than that, get a good inspection done to see what the issues you'll be facing are. Make sure you are at the home when the inspection is being done so that you can talk about the problems with the house (aka the time, money, and effort you'll be spending in the future).

Yeah, and don't use an inspector the realtor recommends, find your own.

 

[jessieqwert]

What kind of home are you thinking? Town, single family, etc?

 

[Mr. Pedantic]

Do your research. Get a lawyer, and run everything past them. We have a thing with new-ish homes (90s to mid-2000s), especially plaster-fronted houses, having untreated timber in their framework, which means they rot very quickly and repair costs are absolutely massive if you get to keep the house at all - a lot of them have to be demolished and rebuilt.

Even if you don't have a similar issue, they're very useful for telling you if there was anything shady with construction/renovation paperwork - make sure everything is above board, approved by whatever regulatory agency, etc. etc. You don't want to buy a house and then 5 years later find out that you have to foot the bill for a reversal of some renovation because it's impinging on something neighbours or the municipals want to do.

 

[MongGrel]

Get a reputable inspector to look at anything before you buy.

And the lawyer, if you're going through a good realtor they probably have that one covered.

I'd ask.

 

[olds]

20% down to avoid PMI and start with a little equity
Get a good home inspector and if he charges extra for going into a crawl space, attic or roof, pay it.
Budget for window coverings if the house doesn't come with them.
Budget for utilities.
Change the locks.
Don't buy in or right next to a bad neighborhood. They may have to walk through your block to get to school and they will leave a trail of trash and debris. I know this from personal experience.

 

[blurredvision]

I'll make a couple of suggestions based on the things you wouldn't normally think about.

1.) If you entertain any at all, make sure you have enough parking available for a few cars. If you don't have much of a driveway or can't park on the road, then nobody is going to come over.
2.) Consider how much yard you want if you have/want kids. Don't buy a nice house that sits on the side of a hill, a sloped yard does you absolutely no good. You can't do anything in it and it's a bitch to cut. Just don't do it.
3.) Don't get more house than you need, it'll just cost too much to heat/cool rooms you don't use.
4.) Consider electricity costs if you're searching in an area with multiple providers. There might not be much of a cost but if it's even the slightest of significance, it can cost you thousands over the life of your home.

I'll add any more if I think of them.

 

[MagnusTheBrewer]

Check the drainage and ground level around the house. Beware of houses with add-ons and additions.

 

[Muse]

When I bought my house I bought a copy of Homebuying for Dummies. I thought it was a big help. Covered the basics.

Check the drainage and ground level around the house. Beware of houses with add-ons and additions.

My 100+ year old house has a lot of that stuff. Various people have waxed on about their ideas of what happened, what's new, what they did. I've never decided, myself. I suppose I should ruminate about it more, try to figure out what it was like originally, what they added or modified. But it is what it is now. I went down to the city planning department and looked at their records of building permits. I didn't come away with a clear idea of the history of the house. I don't think their records were complete.

 

[Scarpozzi]

I agree with Magnus. Make sure you buy a house that's on a good plot of land with good drainage. Flood plains and low-lying areas....areas that may receive occasional runoff from higher ground, and areas within proximity to creeks or streams are all things to avoid if possible.

I prefer homes of traditional construction... This means, look for homes with a basement or crawlspace built at least 6-8 inches ABOVE grade. Water from the ground can wick up into the sub structure of the home and cause invisible damage/attract bugs. As long as your floor joists are dry and solid, you'll be good. My home even has substantial damage from this.

Buy your home based on size vs location. Check out homes in the immediate and surrounding areas (comps) and try to find an average price per finished square foot. That will help you establish whether or not you're getting a deal and make offers according to these numbers.

Remember roof, siding, paint, flooring, wallpaper, etc are all cosmetic details that shouldn't make too much difference on the core price of a home. It's only when flipping buying/selling the newly updated move-in ready properties that you can ask/fetch a premium for upgrades.

 

[Muse]

I know a guy who looked at many many dozens of houses (likely over 100) before he even thought of making an offer. He'd go to the open houses every weekend. He really did his homework, got very deep into the scene and learned about DIY stuff on a very deep level. After buying his house he got a top general contractor to fix the foundation, and he did a ton of stuff himself on the house including adding rooms, modifying the layout, and he totally remodeled the kitchen, re-sided the house, did roof work,all stuff he did himself. He bought books, he's up on things. He permitted everything. Smart guy, graduated from Harvard in math.

 

[cbrunny]

The dollar is king. Don't buy too much. You will regret it.

 

[Kaido]

I'm going to go look at a few open houses this weekend, just to get an idea of what's what and get the ball rolling.

Also, keep in mind how long you'll be staying there - one thing you'll want to consider is resale value. Like others have mentioned, try not to buy the biggest home in the neighborhood, try not to buy in or near a bad neighborhood, etc. because at some point, you may want to sell the house & move, and you want it to be an attractive piece of property for the next homeowner to consider buying. Best way to do that may be to consult with your realtor about what they would consider to be a good buy & a good resale value later.

 

[seepy83]

I read a previous edition of this book when I was a first-time home buyer. http://www.amazon.com/Nolos-Essentia.../dp/1413317626 Sure, you can likely find all the same info online, but I found it helpful to have all of the essential topics covered in a single book, and then I could do further research on anything that I didn't think was covered well enough. Everyone I worked with (realtor, mortgage broker, attorney, etc) along the way was surprised it was my first time because that book laid it all out so well that I knew what to expect through every step of the process.

Edit:
I'll also echo what was said about getting a nice flat plot of land with good drainage. I didn't consider this nearly enough when I was purchasing and it has been something I regret. I had to deal with water/drainage problems in the first 18 months that were not brought to my attention by the inspection (and I was too naive to see the warning signs). I don't have any water problems anymore, but the house being built into a hill is a pain, and I will never buy on an uneven lot again.

 

[Squeetard]

All of the above plus this.

Call around and get insurance quotes before you seal the deal. I bought my house and called for insurance after we closed the deal. I was amazed at how much they were able to tell me about my house and neighbourhood. Definitely should have done that first.

The knew what ground my house was built on. Whether it was in a flood or forest fire risk zone (pick your natural disaster there). The crime rate in the area. Who built the house and their reputation as a builder. These underwriters make it their business to know this stuff.

 

[Muse]

You will absolutely want to have any prospective buy inspected by someone who knows what they are doing and you know you can trust.

 

[96Firebird]

Thanks for all the advice everyone, it is much appreciated.

I'll start off by saying I'm looking to buy a single-family house. I have been recommended an inspector from people on a local car forum, so I've got that covered. My realtor has lawyers, so I'm covered there. I'm hoping to get pre-approved soon, but I was summoned for grand jury duty for pretty much all of December. I'm hoping I don't get picked for that, but if I do it will really stall things. My company only pays for 1 day of jury duty, so any other day that I miss I will only get $40/day. Such bullshit...

Anyways, I found a house that could have potential, but needs work. I haven't checked it out yet, but the ad says it needs some TLC paint and updating but is functional and absolutely livable. It is listed 20% under assessed value, and about 30-40% under most other homes in the area. I think this could work for me, since it is just my dog and me and it is a 4 bedroom 2.5 bath house. I could get the master bed and bath all set, and then work on everything else in time. It has an in-ground pool, which I don't really want. But it looks like a nice neighborhood with good schools. Taxes are high, but taxes are high everywhere around here (3%+).

Other than that, nothing else has really caught my eye. I went to two open houses this weekend, one was decent but over my budget, and the other was not great and had a weird layout/setup. Hoping to go to a few more in the coming weeks, and hoping I don't get picked for grand jury duty...

 

[MagnusTheBrewer]

Here's a quick tip for you since you live in a snowy area. If other houses are covered in snow but, the house you're looking at isn't, you have a serious problem with heat loss. If it's recently snowed and all of the houses are bare, you're in a bad subdivision.

 

[Kaido]

It has an in-ground pool, which I don't really want.

Let us know if you get the one with the pool - my buddy recently switched to a saltwater chlorination system (install machine + dump salt in!) with fantastic results!

 

[Scarpozzi]

In ground pools can be more costs...if it has a liner, they need to be replaced every x number of years and cost $2-5k to replace. A buddy of mine bought a house with one...it was nice, but a lot of work and bed when his liner started leaking. (water loss + having to replace the liner in time)

Another thing to consider. My first house was a 3 bedroom 1 bath....but it had an in-law suite behind it. I lived in a college town. I spent a mere $4000 to renovate the in-law suite and listed it as a "studio apartment". It was literally a kitchenette + bathroom + bedroom....like maybe 350 square feet. I rented it for $550 a month with utilities, internet, and cable included.

It stayed rented the whole time I owned the property after renovation.

If you can find a property like that....or renovate 2 bedrooms at once, get a roommate, etc...you can probably charge $400/month to cut your costs if you don't mind giving up privacy for a year or two. As painful as it was, I funded my remodel with tenants/roommates in my younger years.

 

[alkemyst]

Yeah, and don't use an inspector the realtor recommends, find your own.

Not necessarily...however; you want an inspector that really does an inspection, many have this blanket clause about hidden things which they use to include everything. If they aren't going into crawl spaces / attics, they really aren't doing an inspection.

Word of mouth is best for this, sometimes you can google a company/contractor.

 

[schmuckley]

Walk on the roof.Go there after a very hard rain.
Check the trusses with your fingers.Look at the wiring/piping.
Is the piping pvc? or galvanized?
Does water stand after a heavy rain?
Is the roof solid?
Are the trusses solid?
Does the electrical look ok?
Go there after a heavy snow, too
Make sure it has a steep pitch on the roof.
Idk..I'm sure house buying up there is different than where I am.
I've been in houses up there that were built early 1800s and were still solid.

 

[Humpy]

I agree with Magnus. Make sure you buy a house that's on a good plot of land with good drainage. Flood plains and low-lying areas....areas that may receive occasional runoff from higher ground, and areas within proximity to creeks or streams are all things to avoid if possible.

I prefer homes of traditional construction... This means, look for homes with a basement or crawlspace built at least 6-8 inches ABOVE grade. Water from the ground can wick up into the sub structure of the home and cause invisible damage/attract bugs. As long as your floor joists are dry and solid, you'll be good. My home even has substantial damage from this.

Buy your home based on size vs location. Check out homes in the immediate and surrounding areas (comps) and try to find an average price per finished square foot. That will help you establish whether or not you're getting a deal and make offers according to these numbers.

Remember roof, siding, paint, flooring, wallpaper, etc are all cosmetic details that shouldn't make too much difference on the core price of a home. It's only when flipping buying/selling the newly updated move-in ready properties that you can ask/fetch a premium for upgrades.

^^^^ Anyone reading this thread should read the above post again.

If a wood construction house is up off the ground and stays dry it can pretty much last forever.

 

[SolMiester]

Location, location, location.....you make your money when you buy your house, not sell it.