OT: Home buying tips please!!!!!

[natenapril]

We will be buying our first home next year. So my question is where did you learn the ins and outs of home buying? I have researched some on the internet but know there is still alot left!!

Also tips appreciated!!!!!

 

[lovesmurfs]

We went through USAA financing, and they recommended a really great book which was helpful for us -- It was my Bible throughout the process.

It's call Tips and Traps when Buying a Home -- there's a newer edition than our 1996 or 1997 one.

Amazon's link is http://www.amazon.com/Tips-Traps-Wh...ef=sr_1_3/104-2392671-5432760?ie=UTF8&s=books

 

[natenapril]

Thanks! We may be using USAA too!

 

[karinbelle]

Do not skip the Home Inspection.

If the other party backs out of the contract, make sure they have to pay you any fees that you incurred (appraisal, home inspection fee, etc.).

This happened to us. We put a contract on a house. The family refused to move until their new house was completely finished (2+ months after we were supposed to get possession). My agent was on vacation - said "Just sign the papers and your lawyer can get them to pay the appraisal, etc. after the deal is off." Stupid us - out $500

Karin

 

[Barbers2005]

When we started buying a house, we didn't know enough about the process to ask useful questions- it was all a big mystery to us. Then we bought "Home Buying for Dummies" and found it to be a great place to start our home buying research. The layout is not too intimidating and it really addressed all the steps involved in the home buying process. It was very helpful to get an idea of how everything works so we knew what kinds of questions to ask and what topics to find more information on. I totally agree that you need a home inspection so you know exactly what you're buying. Besides, the information from the inspection can be a powerful bargaining tool. Dh and I are closing on a house this month and were able to get the sellers to help pay for a roof replacement that came back on the inspection. Also, don't be afraid to ask questions. Ask questions of the real estate agent, your mortgage consultant, the inspector- everyone involved in the homebuying process. They have done this a million times and probably know the answers you are looking for. Oh, I would recommend tagging along on the inspection. You get a better idea of what the problems are if the inspector points them out to you than if you just read the report when it's all done.

 

[skuttle]

We just bought our first home in May. We bought two books, one about home buying and one just on mortgages. I don't remember the names rigth off the top of my head, though.

We "looked" at houses A LOT on the internet. We actually put an offer on and bought the first house we looked at in person. Crazy, I know! But we knew what was out there based on looking at them online (we had 3 other appointments later that day and didn't even go!!), we knew the first house we looked at was our first choice. The internet really saved us a lot of time!

 

[Hope73]

First if you are a buyer you have more of an advantage. It is the seller who will pay teh reality fees. You may want to look for for sale by owner houses. YOu will be suprised how they can be much cheaper.

Low ball the offer and put write ins that you don't care about that can really lower the price.

If the home is empty they may have allready moved and paying two mortgages.

Locally we have a web site that you can get the tax value of a home and they sell for no more than 20 percent over that. You can also look up if these people have more than one house so they may be desperate.

Good luck

 

[Kae]

Low ball the offer

A house is only worth what someone is willing to pay.

 

[barkley]

watch tv shows that are geared to SELLERS-then you can learn what someone may do to attract your eye away from trouble spots ("sell this house" and 'my house is worth what?' on hgtv are good ones-you get to hear real realtors talk to sellers and find out what the thinking is like on the other side of the table, always valuable in negotiations).

talk to a local well respected realtor ahead of time to find out what the process/trends are like in your area. in some regions spring brings the most new homes on the market (and higher prices), in some it's fall. in our area sellers who list with realtors won't even show a home to someone who does'nt have preapproval/prequalification for lending so you need to find out if thats the norm in your area.

watch the trends in real estate-some areas are experiencing major collapses. ours is one-we put our home on the market a bit earlier than most people would normaly (if planning for an end of the school year move) mid march. we were so lucky-we sold and were out at the end of may. other houses that went on the market a few weeks later are still sitting there with 100,000 dollar price reductions-the market is totaly stalled here, and people who counted on refinancing short term loans are finding that their equity has dropped so much they cant- so they are stuck 'upside down' loan vs value-with an insane interest rate, and those houses are going into bank repo.

oh-and check to see if 'low-ball' offering is accepted practice in your area. around here when the market was good for sellers a buyer generaly had to bid at or above asking because of multiple offers (our buyers paid $5000 above asking so they could get a credit back to cover their closing costs). even when the market got weak many sellers have priced their homes such that a low-ball offer is no way feasable and they won't bother to counter (and real estate law here is you don't even have to decline it-you just don't respond, so the buyer is left hanging with no answer for days).

 

[GatorGal]

Have your lawyer review your Purchase and Sale agreement. We bought our current house a year ago and our lawyer added a page and half addendum to our P&S. His items included that all appliances had to be in working order, all personal items had to be removed, house was to be in broom clean condiition, and house had to appraise at at least the selling price, among others. The day after we signed the P&S the microwave broke so they had to to replace it. When we did the walk through before closing, we discovered they had left a bunch of stuff, including an old washing machine and stove, so they had to have it all removed before the closing.

Doing a walk through before closing is a must. I live in Massachusetts and here it can only be done within 48 hours of the closing.

I agree with pp about the inspection, a must. I was present during the inspection and still missed some broken windows.

Hope this helps.

 

[Barbers2005]

That reminds me, read your sales contract very carefully, and question anything you don't understand before signing. Ours had so much important information in it. There was a list of all items (appliances, furnace, ceiling fans, light fixtures) that were to stay with the house and guarenteed in working order, and a list of which items were to be removed (all debris and personal items). The "broom clean" clause was in the contract when the realtor drew it up, and thank goodness- the garage was two feet deep in garbage. Also, there was description of each circumstance under which the contract could be cancelled with no penalty. At different stages in the homebuying process, you may decide you don't want to buy that house after all (inspection shows major problems, financing falls through, changed your mind about the house) and it is vital to know at which points you can back out of the contract without legal and financial ramifications.

 

[JudicialTyranny]

- Unless you are using a "buyer's agent" - and have signed a buyer's agent agreement with the agent stating such, not just because the agent said so - remember that the agent is working for the *seller*, not you. That's not to say they won't be honest, it's just something to keep in the back of your head.

- Don't buy a house that you don't think you could resell easily - it's the old "location, location, location" thing. Location is the one thing you cannot change about a house - even though you might be willing to settle for a less than ideal location, remember that one day you will want to sell it. I once bought a house next to an apartment parking lot, and while it didn't bother me that much, I had a heck of a time reselling it.

- Watch out for what the agent/mortgage people say you "qualify" for vs. what you think you can "afford". On my first home, they were much different numbers, and I'm glad I went with "afford". Remember, there will be other expenses and wants/needs that will come up and you don't want to be strapped. And if your first house is not your "dream" house, you want to be able to save a little for the next house.

- As for using a lawyer - that's up to you. I used one once. It was a standard purchase, and he ended up making one or two minor changes to the standard contract used here in the state of PA. Nothing earth shattering. I didn't use a lawyer on the next purchase. I guess it depends on how the standard contract used in your area is written. That stuff that a previous poster mentioned (broom clean, working appliances, etc.) was already in the pre-printed contract commonly used around here. If you are not certain whether you want to use a lawyer or not, err on the side of saftey - it should only be a few hundred bucks.

 

[hoosiergirl7]

Just an FYI, we're military and we used USAA the first time we bought a house. As much as we love USAA as a financial & insurance institution, we will not use them again for a mortgage. They often sell their mortgages to other companies - ours was sold 2x's when we owned our first house and our mortgage went up because of this (at least one of the times it was sold). You might want to shop around for a mortgage. We did the Lending Tree thing and weren't really happy with any of the companies they referred to us. So a friend recommended Countrywide (she's a mortgage broker). They had the lowest rates that we were able to get at the time and they never sell their mortgages. However they did tell us that 1 in 4 of their mortgages are ones that get sold to them by other companies. We have been really happy with Countrywide and their staff.

Apr 1986 - offsite
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Sept 2006 - offsite

Only 14 Days until our WDW Trip!!!!

 

[natenapril]

Do not skip the Home Inspection.

If the other party backs out of the contract, make sure they have to pay you any fees that you incurred (appraisal, home inspection fee, etc.).

This happened to us. We put a contract on a house. The family refused to move until their new house was completely finished (2+ months after we were supposed to get possession). My agent was on vacation - said "Just sign the papers and your lawyer can get them to pay the appraisal, etc. after the deal is off." Stupid us - out $500

Karin

My DFIL does home inspections for a living so he is coming down to do the inspection!! Saves money.

 

[natenapril]

We just bought our first home in May. We bought two books, one about home buying and one just on mortgages. I don't remember the names rigth off the top of my head, though.

We "looked" at houses A LOT on the internet. We actually put an offer on and bought the first house we looked at in person. Crazy, I know! But we knew what was out there based on looking at them online (we had 3 other appointments later that day and didn't even go!!), we knew the first house we looked at was our first choice. The internet really saved us a lot of time!

We are in Alaska right now and will be buying in PA. SO we have been on Realtor.com ALOT!!

 

[natenapril]

These are all great suggestions!! Keep them coming

 

[natenapril]

First if you are a buyer you have more of an advantage. It is the seller who will pay teh reality fees. You may want to look for for sale by owner houses. YOu will be suprised how they can be much cheaper.

Low ball the offer and put write ins that you don't care about that can really lower the price.

If the home is empty they may have allready moved and paying two mortgages.

Locally we have a web site that you can get the tax value of a home and they sell for no more than 20 percent over that. You can also look up if these people have more than one house so they may be desperate.

Good luck

IT's funny you mention THat! Our friends just bought a house in the area that was listed for 235,000 and they only paid 180,000. I would love a deal that good!!

 

[rt2dz]

I've only skimmed this thread, so excuse me if this has already been mentioned. Don't skip the inspection--even if it is a new house. They look for different things than just passing building code when paid for by the seller. This could have saved me thousands. Especially since our builder did not honor the warranty & filed bankruptcy as everyone filed lawsuits.

Also, all inspectors are not created equal. Some are better than others, and that does not necessarly equate to the more cautious the better the inspector. Don't necessarily use the inspector your real eastate agent or mortgage company recommends. Frequently, they get a kick back. And it doesn't mean the inspector isn't any good, but it doesn't mean they are good either. Ask other home owners in your area who they used & if they would recommend them.

Also, mortgages are bought & sold frequently. You (and them) are still bound by the contract you signed. Read it very carefully.

 

[lovesmurfs]

That reminds me, read your sales contract very carefully, and question anything you don't understand before signing.

That is awesome advice. We had a lawyer, and during the closing we just got forms passed to us for signature (forms and forms). I looked at every single one, much to the eyerolls of my husband and our lawyer.

We had a VA loan with no money for closing costs, so part of our deal was that the seller was to pay closing costs. With everything back and forth (and our good faith deposit), according to the forms we were actually getting back about $1,000.

When I looked at everything, nothing on any of the forms said anything about the seller covering the closing costs. I asked the lawyer, he did a "hmm, you're right" and our check at closing was over $3,300. I still read EVERYTHING anyone hands me to sign.

 

[lost*in*cyberspace]

ust an FYI, we're military and we used USAA the first time we bought a house. As much as we love USAA as a financial & insurance institution, we will not use them again for a mortgage. They often sell their mortgages to other companies - ours was sold 2x's when we owned our first house and our mortgage went up because of this (at least one of the times it was sold).

Just about all mortage companies will sell your mortage at least once, not just USAA. And it is IMPOSSIBLE for your interest rate to be increased when it is sold to another company. Could you possibly have had an adjustable rate mortgage?

For the OP, the best advice I can give you is to USE A BUYER'S AGENT.

You can find one here:

http://www.naeba.org/