Owning your own home

[CMSturgeon]

What are some important things you think new home owners or potential home buyers should know about the process of buying and actually owning a home? As a young home owner, I have a lot of friends just now looking into the issue. I would like to provide them with efficient advice but know there are still a lot of things I do not know about the subject.

Anyone?

[bandnerd]

Do not, I repeat, do not buy a home without an inspection. I've seen people do this. It is a BAD idea.

[writerranger]

Do not, I repeat, do not buy a home without an inspection. I've seen people do this. It is a BAD idea.

She is so right. An independent inspection. Sometimes realtors will say, "and it's already been inspected." But, unfortunately, only an independent inspection, as part of your buying process, should be accepted. And, to make things easier - use a buyer's agent. It won't cost you anything (the sellers realtor shares the profit) and you are certain that your best interests are being looked out for along the way.

[Keith]

What are some important things you think new home owners or potential home buyers should know about the process of buying and actually owning a home? As a young home owner, I have a lot of friends just now looking into the issue. I would like to provide them with efficient advice but know there are still a lot of things I do not know about the subject.

Anyone?

Definitely make sure you get an inspection. Check the house for cracks in the wall or ceiling (due to settling). If it has central heat/air, find out how old the unit is.

Check the plumbing. Make sure there have been no problems with sewer backups. You can call the city's emergency number (297-3334), to find out if there have been any sewer problems at the house in the last 3-4 years.

Try to find out how old the water lines are, and if any repairs have been made recently.

Check the windows to make sure they are in good shape and make sure they open and close properly.

Check the outside of the house for cracks in the brick, or wood that is decaying.

These are just a few things to look for when trying to find a house to buy. Unfortunately, many of these things I mentioned, I found out the hard way.

[dirtrider73068]

What are some important things you think new home owners or potential home buyers should know about the process of buying and actually owning a home? As a young home owner, I have a lot of friends just now looking into the issue. I would like to provide them with efficient advice but know there are still a lot of things I do not know about the subject.

Anyone?

Hey I just bought my first home back in december and can tell you exactly what I went through and what to look for.

Like they said get a inspection they should and make sure they check everything, from truing water on to checking light switches and plug outlets. Depending on the type of home if it has a floor space or is a wood frame home you will need a termite inspection done as well. The home inspection will cost around 250.00 termite will cost about the same depening on the company. DO NOT use tri city pest to do your termite inspection they did a crap job on mine I had to go back and get somebody else to do it, I can you there name if you want to use them. Ask questions ask questions ask questions, if they are unsure of something ask it, the main thing that got me off guard was the changing of closeing cost, and what I had to pay, there was a miscommunication on what it was going to cost for me to pay at closing. They can do there own inspection when they look at houses, look for cracks in the walls inside and out, that can be a sign of settling or further foundation repair and that can cost up to 20k to have that foundation jacked up. Look in the attic make sure there hasn't been any leaks. I can go and on what to look for and what to expect but its alot for me to type out, I also have the broker, real estate agent I used that were very helpful with me, and did a great job they worked hard to get me in my first house. I can refer them the people I used unless they have picked out a company already. Or you can PM me and we can set up a time to meet and I can talk to them andmaybe help them out and explain what to look for, there are more details, that I would like to expalin but like I said its alot of typeing.

[bandnerd]

Another one I remembered from our unfruitful house search this time last year:

Check the gutters, and how they drain. If they drain next to the driveway, and not away from the house, expect water-based foundation problems. Also, if there is sand on one side of the house, it indicates water erosion from the foundation. Like it's flushing out from under the house.

Look for trees next to the house, they should be outside a certain number of feet away from the house (I don't know how much though but they shouldn't be right next to it) or the roots can cause foundation problems.

Check the water heater and a/c units. Check the fuse/breaker box. If it's an older home, have the electricity tested--you might have to make updates.

Find out how old the roof is.

Find out about the former owner, if you can. Be wary of people who were once realtors (we almost got screwed over last year with this...they wouldn't disclose information and such).

Check in the bathrooms and kitchen for signs of pests...open up the bottom cabinets and drawers, look under things...we saw a house last year that just gave me the willies when we saw how many spiders and things were stuck to a sticky trap under the tub! My skin is crawling now just thinking about it!

[writerranger]

Some good lists of things to watch for.

I just wanted to remind you that these days you don't have to do all of this alone. There are realtors who now specialize as "buyer's agents," whose sole job it is to look out for the buyer, get the best deal, etc. And again, they don't cost the buyer anything. By law, the seller shares his commission just as they would with any cooperating realtor and/or broker. I didn't know this until recently, when we went about selling our house and our realtor dealt with a buyer's agent. Definitely a good thing for buyers.

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[Karried]

Get pre-approved with a reputable lender, compare loan programs to get the whole picture, ie closing costs, interest rates.. compare, compare, compare.. it could save you thousands of dollars over the life of your loan.

Get a Comparable Market Analysis for the neighborhood.. so you know what has sold in the last year. Ask for the price per sq ft...compare what the Seller is asking.. good to know when negotiating price.. also, how long has the house been on the market.. again, good to gauge how 'desperate' the seller is when making an offer. Ask for a Home Warranty from the seller, they are limited but nice to have when the A/C goes on the blink.. ask to see the Disclosure as soon as or even before you see the homes..

Anyway, yes, yes, yes, get your own Buyer's Realtor ( Selling Agent) - the Listing Agent has listed the house for the Seller.. most are transaction brokers but typically the Buyer's realtor has the buyer's best interests in mind.

(Not advice but * I am a licensed Realtor but haven't been practicing lately as I've been extremely active in our company).

I can honestly say that Churchill Brown offers so much training in real estate matters.. we do have some of the best classes and it's constant learning .. everyone is encouraged to learn as much about current market issues.. they are a great company. I know many awesome people if you are interested.

[BaconCheeseburgerDeluxe]

I am waiting a couple of years before I go look for a home. I want to be debt free not to mention my credit report will look a little better by then. I am also eligible for a VA loan. I want to make sure I get the best house and the best loan for my money.

After reading this, I am going to have whatever house I buy inspected by three separate inspectors before I sign. I want to know all there is about the house. I would think three sets of eyes would catch a majority of the problems. It is kind of, like when you need to have your car repaired. If the car is drivable, it is best to get three estimates. That way you know if a shop is trying to rip you off or make needless repairs.

[BailJumper]

The inspection is a must. Also, I prefer to look at a home as an investment first and fall in love with it second. Buy below your means. I have way too many friends that work way to much just to cover their $1,500+ house payment plus high utilities and the upkeep and furnishing that comes with it. I prefer to buy older and fix it up. We've owned our house for only 10 years it appraised for almost twice what we paid for it when we refinanced and took out a home equity loan for a business venture. It was a bank forclosure with nothing updated in 30 years. Never do an interest only loan, that is nuts in Oklahoma. Talk to the neighbors if you can and get a history of the home. Call the utilities and see what they run if the home has been occupied.

[Easy180]

Try and buy the worst house in the best neighborhood you can afford if at all possible

[Karried]

Wonderful advice. Houses should be something in which you want to raise a family in or enjoy living in... a lot of people are losing everything they have because they looked at at their home as a money making ATM machine... real estate.. it's a fickle beast.

[dismayed]

My number one advise is plan out all the financials ahead of time. Go get a pre-approved loan amount from a bank. Come up with spreadsheets and figure out how much you will really be putting down -- make sure they understand its the downpayment, plus pro-rated interest, plus all the inspection and banking fees, plus all the escrows for the year. So if they are putting 5% down, tell them to save up 10% because that's what it will realistically take.

Make sure they understand that the loan amount is not the total amount of their house payment. Make sure they realize that insurance will kick up their monthly payment, as will taxes, and PMI. Probably another 30% per month when all is said and done.

If they aren't buying a brand-new house, make sure they understand that if the A/C goes out or the plumbing goes on the blink, they are responsible. Some things are covered by homeowners insurance, but their deductible may be $1000. Other things just flat aren't covered.

Those are the big things in my opinion. Also make sure and tell them that they will get a huge tax benefit out of it, as well as appreciation, so it's not all doom and gloom. Good luck and happy house-hunting.

[MadMonk]

Eveyone has already given great advice so I only have a little to add. When we purchased our home we were very unsure about the whole process from financing to closing. We checked into a short course on buying your first home at the local vo-tech. It was great! Four weeks, two nights a week for a couple hours. They went over everything from start to finish and really took away the mystery of buying your first home. In fact, all of the advice given above was covered in good detail. If they are as clueless as I was, I'd recommend they check to see if any class like that is offered in their local area. It was money well-spent.

[Karried]

Another thing I like to remind people of... when you look for a home keep in mind how your life might be changing in the future.. ie - kids or commute to work, lifestyle changes.. even having an elderly parent move in within a few years might influence your choice (a mother in law plan).

Schools are always a big plus in choosing a home. Even if you don't have kids, one day when you sell, that might be very important. So, go to some websites.. compare stats and test scores, graduation rates etc and see if you can get in a good school district.

Another hint, drive by this house and the neighborhood at many different times, in the evening after neighbors get home, on the weekends.. Sat night, you want to know who and what kind of environment you will be living in... is there a train nearby? A freeway with lots of road noise? Under a flight pattern? Empty lot behind the house? What's the plan for it in the future?

Ask for Covenants and Restrictions.. CCR's - it will tell you if you can have a shed or a car parked on the street..how high your weeds can get, what kind of fence you can have, some even will tell you that you can't wear a t-shirt with offensive wording on it in your yard (yes, I'm dead serious - wayyyy overkill in my opinion.. not somewhere I would want to live).

Bottom line.. things aren't always apparent in the middle of the day when you go see an empty home.

[OKBound]

I don't know if these are in OK, but here in TX we have home warranty service contracts(not from the builder). For a monthly fee, if your a/c breaks down, your water heater cracks, etc, you call the warranty company and they will have their approved company come out to fix it, and the best part is you only have a co-pay, around $45-50. When our water heater went out, we only had to pay the co-pay and the extra to bring it up to code. Saved us a ton on $$. We've also had our a/c go out twice and only paid $45 to get them fixed, including having a new motor installed. Ours offered pest control also, but not all warranty services do. Not all the companies that have been sent out have been good, but overall it has been worth it.
I would have your friends talk to their realtor about this, especially if they are buying a home over 10 yrs old.

[soonerborn]

I'd suggest looking into the crime rate of a neighborhood. Even if a house is well-maintained and attractive, you'll have a tough re-sell and terrible living conditions in a questionable neighborhood.

I purchased a place that was too good to be true (great price, clean, etc.) and scooped it up without investigating the area. Within six months we'd been robbed twice and it got to the point that we were afraid to walk the dog through the neighborhood.

[Misty]

I worked in the mortgage industry for several years. A big problem (at least in Austin because the property taxes are so high) is that many times on new construction the tax rate is based on the unimproved land. So once the taxes go up, so does the mortgage payment (sometimes by several hundred dollars). I've seen many people have to sell their homes when this happens because they can no longer afford the payment and the realtor/builder/lender didn't explain this to them.

[Dark Jedi]

Wonderful advice. Houses should be something in which you want to raise a family in or enjoy living in... a lot of people are losing everything they have because they looked at at their home as a money making ATM machine... real estate.. it's a fickle beast.

Absolutely. I am looking at homes, and while I feel mildly bad for these desperate people, I am at this time able to get a LOT of house for less money due to their choices.