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Dave Wallace
Alliance Realty, Inc.
3160 Telegraph Rd.,
Suite 207
(805) 644-1111
(805) 644-6116 Fax
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House Hunting Strategies
From experience, we know that once you've mapped out a good strategy, you and an agent are on firm ground to begin hunting for the home that's right for you. House hunting is a logical process that the agent has experienced over and over again. As you turn corners and discover new questions along the way, you can count on expert guidance to take you through the maze of evaluating homes and neighborhoods and to understand today's mortgage market. You're well on your way.
What steps are involved in house hunting?
Your first step is to consult with the real estate agent and outline a sound home-search strategy. Next (in approximate order) comes researching (with the agent's help) areas, neighborhoods, homes and financing.
Then you start moving, touring neighborhoods and inspecting homes. When you find what you like, you make an offer to purchase (possibly contingent on a home inspection, financing, etc.). After you reach an agreement with the seller, who signs the offer to purchase (also called a "binder" or, for new homes, a "contract of sale"), you may want to to have the home inspected to remove the contingency. Then you consult with the agent about lenders and your mortgage application comes next.
About this time, you may hire an attorney to review your contract, mortgage and perhaps other matters if you feel it's necessary. Once your mortgage is approved, you take out whatever insurance policies you'll need.
As closing date approaches, you notify movers and utility and phone companies. At settlement, you sign a collection of documents and pay your down payment and closing costs. In return, you get copies of the papers and the keys to your new home.
What's the best way to know what kind of home is right for me?
By examining your lifestyle carefully. Ask yourself such questions as:
- "How much time do I expect to be at home?" If you're a real homebody, you might think about a single family home with an inviting yard that will take hours of care. If you're on the run a lot, a condominium--with no yard care--might suit you better.
- "Do I like swinging a hammer?" If so, an older home is a good bet.
- "Do I like neighbors around but want a good-sized home, not an apartment?" If so, perhaps a townhouse would suit you best.
- "What style of home attracts me?" Each has practical as well as aesthetic advantages.
What's the most efficient way to know what's on the market?
The primary source of information about what's happening today in the housing market is the local Multiple Listing Service (MLS). Brokers throughout your area enter properties for sale into the MLS, and an agent can show you any home listed or, in some areas, the agent may call the listing agent first.
Before you actually hit the road, you can search the system to find homes that meet your description, considering characteristics including: area, property size, type of home, style, number and size of rooms, appliances and water and heating/cooling systems, plus extra features such as fireplaces, saunas, landscaping, pools, etc. Financial information is also included, such as: price, mortgage balance, monthly payments, cash needed to assume the seller's mortgage (if it's assumable) and whether or not the seller offers second mortgaging and annual taxes.
What should I look for in a neighborhood?
Some neighborhoods speak loud and clear at first glance: the quality of life is apparent in its streets, parks, buildings, homes and yards and the folks you see. You get a feel for it (either for or against) just by looking.
A real estate agent can, of course, fill you in on community details that are not so obvious at first glance:
- Where schools, supermarkets, libraries, hospitals, places of worship and fire and police stations are located.
- What zoning regulations apply.
- What community services are available.
- What construction plans are in the offing.
- What shifts in transportation facilities are occurring.
- Whether home values have appreciated or depreciated.
- What tax rates prevail.
For a more intimate impression, you should walk around a neighborhood that looks attractive to you. Visit the schools your children will attend to confirm district boundaries and make comparisons with other schools. Talk with people at bus stops (ask about commuting schedules and costs), in shops (chat about where the best stores are), in parks (get folks talking about recreational programs) and in front yards (ask what they like and dislike about the neighborhood). You might take instant photos as you tour different locales. They'll help you later when you want to keep the different streets and homes separate in your mind. Also, take notes to later compare, especially addresses and prices.
Inspecting a neighborhood is as necessary as inspecting the home you may buy. An old real estate maxim says, "The best time to think about selling your home is when you're buying it." That's because location will be a prime factor influencing future buyers when it comes time to sell your home.
What features make one home style different from another?
Style preference involves personal taste, family needs and your budget. This section is designed to illustrate some of the most basic home styles. Space doesn't allow us to show the numerous variations and many other unique styles available in today's market.
Colonial (New England, Federal, Dutch, etc.): A good separation of space in these roomy, two-story homes with center-front or side entries; living-room, dining room, kitchen on one floor; bedrooms upstairs. Privacy is possible but stair-climbing is inevitable.
Ranch (also "Rambler"): Typically, one-story homes with bedrooms separated from living quarters and kitchen, often in wings. May or may not have a basement.
Cape Cod: Cozy living in one-and-a-half story homes. Steep roof lines make slanted-ceilings in upstairs rooms, which often have dormer windows. A good bet for handy buyers who can finish the upstairs by themselves, if needed.
Country (also "Farm House"): Popular in both rural and suburban areas, this rustic one-and-a-half or two-story style features simple room arrangements, large kitchens, front porches.
Split Level (also, "Tri-Level, "Four Level"): Part of the home is two-story, joined to a one-story section by short flight of stairs, sometimes giving each room a floor of its own. Compact use of space and a good design for sloping property.
Victorian: Unexpected nooks and crannies in older homes, modern adaptations of Victorian design use space more conservatively. Special features: wide porches, sometimes turrets and gingerbread trim.
Contemporary: Out-of-the-ordinary, often striking use of space in these homes that often feature dramatic shapes and unorthodox use of materials (concrete, diagonally-slanted wood siding, glass, etc.).
Townhouse (also "Patio Home," "Row House"): Attached homes of similar style (Colonial, Spanish, Contemporary, etc.) share common walls, offer two or three floors of living space comparable in size to detached homes. They feature small, easy-to-care-for yards. (Some duplex townhouses look like single-family homes, with the entry to one home at the center-front, to the other home at the side.)
Condominium: Technically not a style, but a form of ownership. Condominiums can be townhouses, clustered units, low-rise (up to four stories), high-rise or even detached homes. You own both your private quarters and a share of common land and areas. A monthly condominium fee is charged to each owner for maintenance fees.
What should I specifically look for in a new home?
New home construction is changing all the time as builders try to adapt designs to today's lifestyles, make the most of living space and incorporate new technology, building materials and equipment--while keeping prices affordable. Buying a new home is attractive because everything's new, from floors to appliances. Energy efficiency (insulation, weatherstripping, energy-saving heating/cooling systems and electricity) is required by building codes. Buying a new home while it's under construction lets you choose paint, wallpaper, tiling, etc.
Newness itself is a virtual assurance that your maintenance costs will be predictable, and a builder's warranty (highly desirable) guarantees freedom from structural flaws.
Here are some of the signs of good construction to be checked out at the site:
- Good carpentry throughout (well-fitted windows and moldings, non-squeaking wood floors and even wall surfaces).
- Solid structure with sturdy support.
- Basement floors and walls that have no cracks or damp spots.
- Insulation that measures as advertised.
- Everything in good working order (faucets, heating/cooling systems, electrical outlets, etc.).
- A yard free of low, wet spots; grading that slopes away from the home for good drainage.
How do I evaluate a resale home?
Homes with a past have special appeal. An existing home is a settled place (literally): the foundation, the land-scaping, the neighborhood, including its services, are about where they're probably going to be for some time. The home has a lived-in look. Some rooms may be larger than in new homes, woodwork has mellowed, the yard is a generous size. Its price may be lower (per square foot) and its financing possibilities more flexible than in new homes, especially if you can pick up an assumable mortgage.
The thing to be on the look-out for is wear-and-tear:
- How firm is the foundation?
- How sound are the sills, walls, floors and ceilings?
- What kind of plumbing was installed? When?
- What's the shape and extent of the electrical system?
- What are monthly energy costs?
- How well does the insulation protect the indoors?
- What will it cost you to remodel if necessary (especially kitchen and baths) or to make necessary repairs?
If in doubt--or just for your peace of mind--you can hire a certified home inspector for a professional opinion.
What can I expect from a professional home inspection?
The job of a professional inspector is to look over every major part of a home and write a report that judges the home's quality and condition. A well-qualified building inspector who has adhered to federal licensing standards can spot problems that you might not be able to see or get to. However, it's wise for you to accompany the inspector so that you don't have to get the report secondhand.
Expect problems to be clearly explained, repair expenses closely calculated, maintenance costs estimated and a written report delivered within a day or two. Remember, you are buying a resale home; the price reflects the fact that nothing is new. The territory covered by an inspection includes:
Exterior: The foundation (for holes, cracks), the gutters and down spouts (for gaps in joints, sagging), siding (for warp), paint (for peeling, blistering), windows and doors (for cracks, loose caulking), roof (for worn or bald spots), chimney (for tilting, loose bricks or stones), driveways, retaining walls and walks (for holes, sagging, cracks) and grounds (for proper grading and healthy landscaping).
Interior: General structure (for soundness, rot), floors and stairs (for squeaking, shaking, bowing), plumbing system (for condition and capacity), electrical system (for age, condition, adequacy of voltage and outlets, proper grounding, signs of wear), insulation in walls, attic and basement (for thickness and efficiency), walls (for cracks, loose plaster, signs of leakage) and kitchen (age and condition of appliances and plumbing).
What's the secret in making a good condominium buy?
Buying a condominium means, in most cases, buying amenities--neighborly lifestyle, sometimes complete with shopping, entertainment, playgrounds and/or sports facilities. Condominiums serve almost every possible kind of homebuyer: singles, families with children, retired people. First-time buyers are particularly drawn to condominiums because of the amount of space available at a reasonable price.
Each condominium association has its own rules, and as a member of your community you help govern what can be done to the outside of units, whether or not pets are welcome, what landscaping and community improvements are made and what by-laws are passed or amended. Because the owners' association can pay for amenities or limit spending to save expense, it is important for you to know if existing owners are in tune with your financial position by checking recent budgets.
Shopping for a condominium means looking for the same things you look for in buying any home: a neighborhood on the upswing (for maximum enjoyment and for appreciation possibilities), good construction (especially in sound-proofing of walls), good style and sound financing.
An agent knows the local condominium market and can assist you in evaluating the different communities and looking at sales contracts, maintenance charges and condominium management.
From Planning Table to Settlement Table
You've now zeroed in on the home that's ideal for you. You've threaded your way through the maze of home and neighborhood choices and established your own financial affordability. This is it. You're ready to step over the line from house hunter to home buyer and to make the actual purchase of a particular home.
My staff and I are here to answer your real estate questions.
Please feel free to contact us.
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