Things to do before buying a new house
You know that feeling when you lock eyes with a special someone and you know it's just meant to be. Sure, you don't know if you actually have anything in common, but the butterflies in your stomach don't lie!
Actually, as we all know, those butterflies DO lie. And if you're in the market to buy a home, you should never succumb to this love-at-first-sight syndrome.
In fact, according to Nick Jabbour, vice president of Nest Seekers International, while it is easy to walk into a home and fall in love, you should visit at least five properties before signing any contracts. After all, the last thing you want is buyer's remorse after investing in a home.
So what's the solution? Rather than making your decision based solely on emotions (I'll allow you to have a few; I'm not completely heartless), you should gather as much information as possible about each property you visit.
To make it easier, we've created a checklist of points you need to know before deciding which house is the best investment.
How Long Has the Property Been For Sale?
You should ask your real estate agent how long the home has been on the market. Robert Irwin, author of Tips and Traps When Negotiating Real Estate, says that if a home has been on the market for an extended period without a single offer, the market could be slow or the home may be overpriced.
Use Comparisons to Determine the Value of the Home
A real estate agent cannot tell you the amount you should offer on a home. Instead, you should request to see sales that are comparable to the home you are considering.
Find Out Detailed Information about the Area
You can find a wealth of information on online about crime statistics, home values and the average income level of an area. Also, take a drive through the neighborhood at different times of the day and night. How far is the home from your place of employment? Is it a feasible commute?
What Effect Will Moving Have on Your Insurance Needs?
Because you are moving to a larger, more expensive home, your insurance needs will increase to compensate the additional property. This is something that you need to consider before purchasing the home. One of the best ways to estimate your insurance costs is to use an insurance cost calculator.
Get a Home Inspection
Once you are about to make an offer get a home inspection. If the home has already had an inspection, ask to see it and read it carefully. Make notes of anything that concerns you and speak to the owner about it before making your offer.
Some of the issues a home inspector can spot include problems with:
- Termite Infestation
Ask if there is a Homeowners Association (HOA)
If there is an HOA, you need to request a copy of the rules and regulations. Some HOAs only allow specific types of fencing, shed designs and, if you own an RV, the HOA may not allow you to store it on your property. Be sure to read the rules and regulations thoroughly. You also should inquire as to yearly dues.
Don't Forget the Final Walk-Through
On your final walk-through, make sure that the owner has completed any agreed upon repairs. Now is the time to check all the little things:
- Turn light switches on/off.
- Flush the toilets.
- Turn faucets on/off.
- Open/close all the windows and doors.
- Test the garage doors.
- Check appliances.
- Turn the furnace on.
- Turn the air conditioner on.
- Inspect the grounds and look for any missing trees or shrubs. Some owners decide to take certain plants with them.