Tips on buying a house, please

[MommyAllison]

DH and I are seriously looking at buying a house, and have found one we like (on the internet) that we want to look at. However, we have no clue what questions to ask, etc when we look at it. It is being sold through a realtor. Any tips are welcome! We have a friend who owns a mortgage company that we will go through for the financial questions (and the mortgage, most likely). Thanks!

Allison
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[DebbieJ]

Get a buyers agent.

~ deb
DS born at home 12/03
2 year check up: 25 lbs with clothes on and 35 inches!
BFARed for 20 months and 6 days
(Breastfeeding After Reduction is possible! www.bfar.org)

http://www.bfar.org/members/fora/style_avatars/Ribbons/18months-bfar.jpg

[kristenk]

Definitely work with an agent. Try to get referrals for an agent so you're not picking one out of the yellow pages, if possible. Our agent was great when we were going through homes. I was able to pull up the info on different houses on-line, but she was great for the walk throughs. She spotted some problems we wouldn't necessarily have and was able to give us a ballpark figure on how much certain things would cost to do.

I think the big thing to check for is foundation problems. See if there are any cracks on the exterior of the house. Make sure that the doors inside close all the way and don't swing either direction if you open them halfway (did that make sense). Try to come up with a list of things you like and don't like and WRITE THEM DOWN and bring the list with you to the house. In addition, write down comments/answers to the questions on your list while you're actually at the house. You might remember when you get home, but you might not. Open up the cabinets and closets. You're not snooping into someone else's life, you're trying to figure out if the house will work for you. Also, you're trying to make sure that the cabinets don't have water damage or anything else lurking.

Last thing (for now, it's DD's bath time), if you make an offer on the house, HAVE IT INSPECTED by a professional!

[Lovingliv]

I agree, buyers agent is the way to go. FWIW, I did have a house inspection only to find out 10 months later that there was a colony of carpenter ants living/eating my basement away. It really should have been picked up and wasn't. Just an FYI. Are you buying in Massachusetts? Lots of critters here, I would def get an inspection by a "bug" company as well! Good luck!

[eb1]

As others mentioned, do not just call the agent who has the house listed to see the house. That person is acting as a "seller's agent," and will be acting in the seller's best interest.

There are agents who advertise themselves as "buyer's agents" specifically, but many agents will act as either. Just tell them you are looking for a "buyer's agent" when you call.

You should have both a house inspection (someone who will look at the house structurally and all the appliances and systems in it) and a pest inspection, but your buyer's agent will/should walk you through all that (and a million other details), and your offer/contract will/should be contingent on those inspections.

You might want to talk to banks and mortgage companies before you make an offer on a house. It can be easier to make an offer and have it accepted if you become "pre-approved" for a mortgage first. Shop around for your mortgage too, even if you have a friend in the business.

When you view the house, try not to get swept up in the emotional aspect--as important as that is. Look at the nitty gritty: closet space, kitchen arrangment, house layout, the neighborhood, whether the house looks cared for, etc., to see if this is really a place that will work for you.

[bostonsmama]

I just wanted to fifth the PPs' recommendation. Securing a buyer's agent does not cost YOU anything. The seller pays the listing and buyer's agents fees: about 6% total, 3% to the listing agent, 3% to the buyer's agent, and no, it doesn't save YOU any money by not getting a buyer's agent, it just fattens the pocket of the listing agent....and then you don't have anyone to advocate for you during this legal transaction.

It depends on the market, but most realtors won't even accept an offer w/out a letter of pre-approval from your lender. I also agree you should get a home inspection & pest (usually termite) inspection, but depending on the market you might not get to ask for these as contingencies. For instance, my mother, a realtor, just delivered a contract in our market which as slowed and the offer was contingent upon the sale of the buyer's home, and it got rejected, but this was a really nice house. The average costs for AHI certified inspectors is $130-300, for pests $40-100 (one time fee). You will also need the services of a real estate attorney to go to the closing table, handle and explain all your paperwork, etc. That fee will run $300-600 (we paid $450).

Anyways, my best advice is to narrow down the area you'd like to live in based on schools, location (to work, church, shopping, highways, grocery stores, etc), taxes, etc, and then ask your realtor for listings for those areas. Oftentimes an experienced agent can show you homes you never would have thought of if you tell them your preferences. Then, look at lots of homes. It is very rare that you actually want to buy the first home you see (ours was actually the 5th house at the end of the first day....and it wasn't even on our list to see, we just drove by it....turns out it was $5K above our price range, but we overbid to win the contract and it wound up underappraising, so we got it for $10,000 less and didn't pay any closing costs!).

Anyways, good luck finding a great home!

Larissa
"We can rejoice, too, when we run into problems and trials, for we know that they are good for us--they help us learn to endure." Rom 5:3

Praying for my little bean to keep growing, edd may 2nd
Thank GOD! Our #s are doubling! Keep it up, baby!

[Corie]

I am living in the only house that my husband and I
have ever purchased. So, this move to Rhode Island
has me a little nervous. It seems like everything is
being handled by our relocation company. Would we
still need to get one? I'm confused as to what is
a buyer's agent, what they do, and where do I find one?

Sorry if these are very easy questions but I've never
been through this process before!!


Thanks for your help!!

[MommyAllison]

Ok, I must confess ignorance and say I'e never heard of a buyers agent either. Is it just a realtor that is working for me instead of forthe seller? We have a couple of realtor friends (one in particular sold my parents their house 18 years ago, has been a good family friend ever since) so if they could act as buyers agents that would be great. Please keep the advice coming - it is very helpful! We live in Washington state so termites aren't much of a problem but we definitely want everything inspected. We do love the neighborhood - it is exactly where we have been hoping to buy.

Allison
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[MarisaSF]

Corie and Allison-
You both should get buyer's agents. We went with a guy who was recommended by a friend/co-worker. He considered his strong suit negotiation and he saved us thousands of dollars with his stellar bargaining. He was also pretty good at evaluating construction and pointing out details that add or detract value from a house so we could save time by not considering or getting excited about certain homes.

A buyer's agent would/should be able to use your desired criteria to do an MLS search for you and then take you out to see them. In our case, we did a search online ourselves and told our agent what we wanted to see. Our agent told the seller's when we would be visiting and was able to let us into houses (they have special keys). IME, I prefer seeing homes when the owner/seller's agent is not present. More freedom to talk openly.

Other things you might want from a buyer's agent:
-Knows the area well - including school districts, home values, planned construction in the area (that might detract from a view, for example)
-Has time to focus on you.

Most real estate agents represent both buyers and sellers, though some specialize or prefer working with one over the other. I'd ask friends/acquaintances for recs.

HTH.

[MayB]

Some more general thoughts from buying two homes:

1. Know what you can afford (including upgrades and repairs) without being stretched and stay within that budget.
2. Look beyond the appearance of the house -- what things can be fixed (and at what cost) and what can't. A sloppily kept house can be made to sparkle while a seemingly immaculate one can hide structural issues that would be very costly to fix.
3. If you can, get preapproved for your mortgage, having this makes you an attractive candidate to buyers. At least do a prequalification, though these aren't really worth the paper they're printed on.
4. As much as possible, try not to fall in love with a particular house. Homebuying can be a long process and things do go wrong. As hard is it is to lose a house you love, know that another one will come along.
5. Make three lists: what you absolutely must have (# of baths, bedrooms, garages, acreage), what you would like to have but could live without and what would be a deal breaker (for me one thing would be a house on a busy street, we live at the end of a cul de sac and the kids are so much safer).

Good luck. Buying a house is stressful and exciting time.

[bostonsmama]

Yes, realtors can act as both agents protecting the rights of the buyer and seller. I'd be weary of an agent that "only did one or the other" as they wouldn't have an adequate understanding of both sides of it (but again, I think that would be extremely rare). Yes, your family friend could (and would happily) act as your realtor as long as he's certifiedlicensed in the geographical location in which you're looking to buy. For me, it would just depend on how extensively the agent knew the area, for me that would be the only determining factor, i.e., I asked my mother to represent us when we bought our house, but if she hadn't been in this area for 10 years already and been quite shrewd at negotiating a good deal, I wouldn't have hesitated for a moment in hiring someone better qualified. It's funny; my mother drives me nuts in most areas, but I 100% trust her as a realtor.

Hoping you figure it all out and are able to get a good deal! In general, it is a GOOD time to buy. Most markets are now a buyers market (save for some waterfront communities and areas in Cali). That means asking for closing costs to be paid, asking for repairs, including contingencies, etc are better received since there are fewer buyers than there are houses on the market....making competition for YOUR money more competitive. But ask your realtor about your area...there are still seller's markets out there.

Larissa
"We can rejoice, too, when we run into problems and trials, for we know that they are good for us--they help us learn to endure." Rom 5:3

Praying for my little bean to keep growing, edd may 2nd
Thank GOD! Our #s are doubling! Keep it up, baby!

[millerpjm]

Yes - I agree with the buyer's agent, also. Ask friends, co-workers, relatives, your friend at the mortgage comapny, for a referral.

An agent should arrange showings of the houses you want to look at, and help you with your offer. He/she should recommend an inspection as a contingincy of the offer (meaning, if something is found during the inspection that you don't like, you are not obligated to buy the house, or you may let the current homeowners fix the problem).

When looking at a house, again I agree with previous posters. Decide how many rooms you need, bathrooms, garage space, and all that. If the house needs fixing up, are you a fix-it-up person or will you need to hire someone to do the work? Also look at the neighborhood. Is it an area you'd want to live in? Is it on a busy street? If you are planning on living there for a long time, you'll want to check if the schools are good. Is it convenient to work, daycare, etc. Now, all of these things may or may not be important to you - you will need to determine your own criteria. For example, when DH and I bought our house, he would not look at any house on a busy street, and he would only look at certain areas of our city where he knew the grade schools were better.

Have fun house hunting!

Jen

[boolady]

Definitely get your own buyer's agent, as everyone has said. I would never do it without-- as everyone has pointed out, your agent will be an advocate for you only without you paying him or her a dime. Also, once you find an agent to work with, that person will have access to newly listed home information, etc., usually before it's on the internet or in the newspaper. You should have no problems finding an agent, because they will get 3% of the sale price just for representing you. They should also be able to direct you to home inspectors,etc.

Do NOT go through the seller's agent- a friend of mine's parents just did this and got totally SCREWED, including the agent lying to them when their inspector found a material defect in the property that, according to the contract for sale, should have either required replacement or permitted the buyers to cancel the contract. The agent, whose loyalties at that point are clearly divided, tried to get the buyers not to pursue replacement of the defect at issue. This is very bad. I am not saying that all seller's agents are bad-- when we bought our house, you could tell that the seller's agent, not the sellers, was the reasonable one. :) Nevertheless, if you can have someone just in your corner for free, do it. Good luck!