There are two sides to buying a house. One is if you like the property and it fits your requirements and the other is that you can actually afford it. They are both important but unless you have an unlimited budget you will have to make some trade-offs . Here are a few tips to determine if the house you’re looking at meets your requirements.
Your Priorities
Watch any “House Hunting” show and you will see that the first thing they always do is determine the buyers priorities. But if it is a couple… often they have conflicting priorities. Getting your priorities straight before you start house hunting is essential. Make a list of your top three and make sure that the house has what you’re looking for, ideally before you have a look around. This could include the number of bedrooms, number of bathrooms, a home office, a big back-yard for the kids to play in or being near a good school. Regardless, of what your other priorities the overriding priority is always that you can afford it. After all you don’t want to risk losing it if you can’t make the payments.
Do Your Homework
You should always research the area so you can get an idea of what it’s like as well as the price range. This will help you understand better whether the property fits your priorities and your budget. Then you can go in with reasonable expectations and know what an excessively high or low bid looks like.
Your homework could even go so far as to research the best estate agents for your budget. Some are aimed at high-end properties, so if your budget is more moderate you might be better off choosing another realtor who specializes in lower-priced properties. Each area is different and even individual agents at the same agency might specialize in different types of properties.
Be Savvy
While on the first viewing, it’s unlikely that you’re going to be that analytical, you can do a few things that can help. It’s probably just best to take everything in because you’re seeing everything for the first time and a new house can be a lot to soak up.
Always take photos or a video of the house as you go around. This not only helps you remember (you should state which house you’re in on a video) but it may also help you spot things that you hadn’t seen on the first walk through.
Inspect the House
On the second viewing, look at the house as if you were an inspector. Check the wiring, the roof and the outside of the house, whether there’s any signs of leaks or moisture, and inquire about the monthly utility expenses and any HOA fees, etc.
Make a Chart
Making a chart of the houses you look at will help you compare and remember the houses you’ve seen, allowing you to make decisions without having to go back and check just one more time. A chart should include a picture, price, address, key features you liked about it, things you disliked, etc.
A Motivated Seller
A motivated seller is one who wants to sell their property quickly, perhaps due to a job transfer or even a pending foreclosure. This should give you leverage when it comes to making an offer and negotiating with the real estate agent, meaning that you can get them to throw in extras or bring the price down. The key of course its to determine what the seller’s motivation is. Do they need the money or do they just need to relocate? Perhaps, the owner wants to retire or has to go to a nursing home. Money may not be the primary motivator it pays to find out what they want and find a way to give it to them.
If you’ve found a property online, then the website may tell you how long it has been on the market. If the property has been on the market for a while, it can be an indicator of a desperate seller or that the property might be over-priced. Another indicator is if the property is empty, which implies that the owner has already moved out and might need to sell as quickly as possible. This could provide an opportunity to snag this house for a bargain price. One more indicator of a motivated seller is if the property is marked “Price Reduced”. This generally means that the seller has realized that he isn’t going to get his dream price and is willing to accept a more realistic offer. Other key phrases that might indicate a motivated seller are “price negotiable”, “seller financing available” and of course “motivated seller”.
See Also:
- House Hunting Tips For New Families
- First-time Buyer Mortgages
- How Much House Can You Buy?
- Buying Your First Home
Resources:
“Sanibel Island House for Sale” by Pat Williams on Flickr
