Mortgage & Equity
7 What Do You Want in a Home?
This section will discuss:
How to assess what is most important to you in a new home, before you start looking.
How to evaluate and compare houses.
Now that you have a good idea of what's involved in the financial side of home buying, we'll look at the more exciting side: shopping for your home.
It's exciting, yes, but also potentially frustrating -- and time consuming. The prospective homeowner looks at an average of 15 houses before buying one, according to surveys. You may need to look at even more before you find the house that fits your way of life and your income. Take all the time you need. It's a big decision!
Think Ahead
Before you launch your search, think about what you want in a house. You may not find the "perfect" house; count on making some compromises. But the clearer you are about what you want before you start shopping, the less time you'll waste looking at houses ill-suited to you.
What house features are important to you? What are you looking for in terms of neighborhood, yard size, proximity to work and schools? How much fixing up are you willing to do? And so on. The accompanying questionnaire can help you with this process.
Explore
If you've lived in a community for a while, you may know which neighborhoods you like. If you don't or if you're new to town, get out and look around -- and not just through your windshield. Walk around. Talk to people. Get a feel for the neighborhood, and come back at different times, day and night.
When you're ready to start searching for a specific house, you can take the do-it-yourself approach of checking Web sites, newspaper ads, for-sale signs and word-of-mouth leads. Or you might find it easier to use a real estate agent who has access to a multiple listing service (MLS), a list of houses on the market in your area. If you decide to use an agent, ask around for referrals. Remember, though, the agent works for the seller. It's the seller's interests that the agent is legally bound to look out for, not yours. Still, an agent can be helpful in finding houses that meet your requirements.
In some states, you'll find buyer's agents or brokers who work solely for home buyers. To find out if there are any in your area, check with your local Board of Realtors. Be sure the broker has access to the local MLS. The broker will charge a commission; it's best for you if that's based on a flat fee, not on the home's sale price.
Zeroing In on Your Choices
After looking at a few houses, the features of each will start to blur together in your memory. Come prepared to take notes. The accompanying checklist may be helpful. Look the house over inside and out, and ask about the things you can't see, such as plumbing and wiring.
Don't hesitate to ask for a return visit if you want another look. It's smart not to make any offer to buy, no matter how perfect the house seems, without at least one repeat visit.
If you decide this is the house of your dreams, the real estate agent or your attorney can help you write an offer to purchase. In some states, laws require that an attorney handle the offer; at any rate it's a good idea to have your lawyer at least review it. You will accompany your offer with earnest money, a deposit to show the seller you're serious about wanting to buy.
Once the seller accepts the offer, it's legally binding - with contingencies, or conditions that must be met before the contract takes effect. Common contingencies include the buyer getting financing and the results of a professional house inspection - our next topic.
