Look for these 3 Warning Signs when Shopping for a Home
We’ve all heard it, whether it pertains to investing in the stock market, buying a car or a house: “Caveat emptor,” or “Let the buyer beware.” Houses have problems, even newly built houses. The problem is that many of these problems can’t be seen and are therefore not obvious to even the professional home inspector. Some of the larger problems, however, leave clues, so let’s take a look at some of these red flags. Plumbing System Red Flags Low water pressure could be a sign of a problem as simple as a water softener requiring service, or as complicated as a leak somewhere in the plumbing lines. If the low pressure only occurs when the hot water is on, it may be an indication of a problem with the water heater. Use the tip of your toes to press on the floor around the toilet. If it feels soft and squishy, the toilet may be leaking. In a two-story home, check the ceiling below the bathroom for water stains – a sign that the shower may have sprung a leak. Electrical System Red Flags Older homes are notoriously troubled with electrical problems. Outdated wiring is common and is an expensive fix. Flick all the switches in the home to ensure they’re operating. Fell the outside of electrical outlets ― if they feel warm, the wiring may be old. Is the Floor Waving a Red Flag? While sloped floors are common and perhaps even charming in historic homes, in a modern home they may be either a sign of normal settling or a symptom of foundation problems. “For homes on slab foundation, crawl space, or basement, wavy and uneven flooring should be a red flag to the buyer,” caution the experts at Brackett Foundation Repair in Durham, North Carolina. Expect to pay from $2,100 to over $13,000 for foundation repairs, say the folks with Centex Foundation Repair in Central Texas. “. . . so far this year our average price of repairs has been $5,646.65,” they claim. Red flags need not kill a real estate deal, but they should let you know that something isn’t right and needs inspection by a professional. Before making the hefty investment in the purchase of any home, spend the money necessary to remedy your discomfort over any warning signs.
Buying your First Home? Avoid these 4 Common Mistakes
Buying a home is a process that is naturally confusing for the first-timer. A common bewilderment is about how much home can be purchased for the amount of money being loaned. If you’ve ever watched Home & Garden Television’s “Property Virgins” you’ve seen this on display. The show’s real estate agent shows homebuyers around a neighborhood and, at then she asks them what they think the homes there would sell for. They always guess way too low. Assuming a particular neighborhood is in your price range is one of the most common mistakes first-time buyers make. Let’s take a look at other common mistakes and let you know how to avoid making them. Not Preparing for the Purchase “By failing to prepare, you are preparing to fail,” or so said Benjamin Franklin. If you wouldn’t go car shopping without knowing what you can afford you shouldn’t shop for a home without that knowledge either. Failing to prepare your finances and seeing a lender about a mortgage will do nothing but set you up to lose out on the home of your dreams. Besides, if you shop for homes in a price range higher than you can afford those that you’ll eventually see within your price range will pale in comparison. Spending too much When you’re pre-approved for a loan you’ll be given a figure ― this represents the most amount of money you can borrow. Many first-time buyers take this figure and run with it, looking only at homes at the top of their price range. What happens is that they leave themselves no room in their budgets for emergencies. A major home repair bill may prove untenable when the bulk of your paycheck goes to the mortgage. Determine a monthly payment that you feel comfortable with, that allows you to put money aside every month for maintenance and emergency situations. Let your lender know you want to remain close to that figure and he or she can give you an idea of the maximum home price you should aim for. Falling in Love Some houses are alluring, there’s no doubt about that. It’s easy to fall in love with the curve of a staircase, smooth walls donning sophisticated colors and lines that would shame Adonis. Actor Keanu Reeves puts it into perspective though by reminding us that “Falling in love and having a relationship are two different things.” A house is something with which you’ll have a long-term relationship so it’s important to look beyond the enticing glamour to determine if it truly serves your lifestyle now and in the future. Look beyond the bling to the bones of the house, the floor plan and the flow. Picture your belongings in place of the designer’s carefully-chosen items. Falling in love is fun, but it’s the relationship that is ultimately more satisfying. Poor Timing There are three types of real estate markets: buyer’s markets, seller’s markets and balanced markets. Buying a home in a buyer’s market vs. in a seller’s market is completely different. A buyer’s market, for instance, is leisurely, allowing the homebuyer all the time he needs to view homes, determine a fair offer and haggle with the homeowner. Try that in a seller’s market, though, and that same homebuyer will be shut out of contention on every house he attempts to bid on. A seller’s market on the other hand is one in which there are few homes for sale and many buyers wanting to purchase. It’s the seller’s turn to be demanding, to hold firm to the asking price, to refuse to allow any buyer concessions and to demand adherence to his or her terms. Avoid losing the house of your dreams by understanding the current market and what you can and can’t get away with. Speak with -- and listen to -- your real estate agent.
2 Things to Know about Home Inspections
While a home inspection report is vital before purchasing an older home, experts agree that even newer homes should be checked.Not only will the report help you learn about repairs that should be made immediately, it’s a handy reference guide to keep on-hand throughout the time you live in the home. Because there are so many aspects to a professional home inspection, many first-time homebuyers know little about the process. We’ve chosen two aspects that we find most of our buyers don’t know a thing about. 1. Report Format Professional home inspectors use different formats when detailing information about the house. All reports, however, should contain several common features: A description, in detail, of the condition of the home’s major systems. A list of items that require immediate repair. A list of general maintenance items. Photographs. Ask inspectors that you interview to supply you with a sample report. Ensure that the above items are included and that the inspector not only lists what’s wrong, but why it’s a problem and what should be done to remedy it. 2. Choosing an Inspector Choose your home inspector carefully, as any mistakes made will cost you money. At the same time, keep in mind that the home inspector performs a visual survey. He will not tear up walls or floors to look for problems. A professionally trained inspector, however, knows what to look for and can spot warning signs. The price you pay for a professional home inspection during the home purchase process is worth every cent. Use due diligence and hire the most experienced, professional home inspector in your area and complete your home purchase with confidence. Where will you find this super-sleuth? Ask everyone you know, including your real estate agent. By the way, it’s a good idea to tag along with the inspector during the inspection. This way you can ask questions while on site, rather than later, after looking at a report. Most inspectors welcome a “ride along” with the potential homeowner.
Categories
Recent Posts
