For Buyers
Last updated 10-28-09
Inspection misconceptions . . . for both buyers and sellers!
Inspections are a part of most residential real estate transactions, but because they are so common, their role is often taken for granted or misunderstood. There are some important points you should think about before ordering an inspection on a home you've offered to purchase.
Remember that a home inspection is not a witch-hunt! It's not a tool for finding flaws to allow you to renegotiate your offer. An inspection is an educational exercise that allows buyers and sellers to better understand the home's condition. An inspection can alleviate the buyer's anxiety while also providing a basis for repair suggestions.
Don't think that you won't need an inspection for new construction! Nobody wants any surprises when purchasing an older home, but imagine what could happen in a brand new one that hasn't even been lived in yet! If you're considering the purchase of a home under construction, ask about “phase inspections,” which are completed at various stages in construction for your peace of mind.
Finally, don't assume that inspections are exclusively the responsibility of the buyer. Many sellers have benefited from pre-listing inspections that identify potential problems before the home is listed and the defects are discovered. Both sides can use the inspection to make smart decisions and feel more confident about the transaction. If you're still uncertain, contact a local real estate professional with your questions.
Being open to compromise . . . can really unleash your potential!
Everyone dreams of buying the perfect home. And why not? You'll never find what you want if you don't first know what you want! You'll also never find your dream home if you insist on living in a dream world. In other words, don't be unrealistic or unwilling to compromise.
All homes - even newly built ones - require some work to make them perfect for you. There are several ways to update that make a dramatic difference when you've found a home in the right location at the right price. An open mind helps you make your decision by allowing more possibilities.
You may not find all the right criteria - price, condition and location - in one single home. Compromising on any of these factors can result in a very satisfying purchase. Negotiation is a normal part of any real estate transaction, especially if you've found a great home a little further out than you planned, or a home in need of improvements that happens to be located in your perfect neighborhood.
Real estate agents well understand that communities rely on revitalization. Buyers willing to improve their property keep towns and cities thriving. Pride of ownership helps homes in these communities gain in value, and helps the owners gain in equity. That is the true potential behind creativity and compromise, so don't be afraid to explore it
Look out . . . for the boomerang effect!
There is an interesting trend developing in single-family homes: the kids aren't leaving! U.S. Census Bureau statistics show a whopping 14% increase in the number of families with grown children living at home.
Rising tuition, a sluggish job market, and the high cost of rent are the major reasons that adult children are moving back or staying at home. Consider that in cities like Los Angeles, Atlanta and Boston, it is common for rent for a one-bedroom apartment to exceed $1,000 a month!
Instead of sharing a place with ten roommates, kids are opting to stay with their folks and save money for down payment on their own home. This presents a wonderful opportunity for parents to foster their children's financial security and responsibility.
Parents might consider buying a property where their child attends college or university, building equity until graduation. Then you have some choices. Keep it and gain income from renting it (although you'll probably have to hire a maintenance person). Or sell it, likely at a profit. Or maybe your son or daughter will want to stay.
If you're looking at new houses and anticipating an adult child living at home, look for amenities like ample parking, guest suites (remember when they were “mother-in-law suites”?), or a guesthouse. Today's real estate market offers many options to accommodate this recent trend toward “boomerang” kids.
Forget about Kermit . . . it's easy being green!
You're probably aware that more people these days are concerned about the environment and our impact on it. Kermit the Frog lamented all those years ago, “It Ain't Easy Bein' Green.” But oh, how times have changed!
For the first time, the National Association of Home Builders has unveiled rules for constructing “environmentally friendly” homes. “Green” features of your next home might include the way your lot is prepared, the home's energy efficiency, the quality of the interior environment, low maintenance landscaping, and even ways to reclaim water and use natural sources of energy.
While the concept of “green houses” is relatively new, what's even newer is the idea that these homes should be affordable. It's been the case for quite some time that only “niche” builders serving “upper end” clients could offer such energy-saving, environmentally friendly housing.
If you believe that a home's environmental impact and energy efficiency will be important factors in your next home buying decision, you'll want to investigate the newer “energy efficient mortgages” being offered. Some even allow you to buy an older home and add the cost of energy improvements to the amount of the loan!
If you'd like to learn more about the various issues involved in building and the environment, just visit www.nahb.org on the web. Click on “Environment” under “Resources,” and you'll be amazed and enlightened!
What to expect . . . between offer and acceptance!
Imagine you've been looking at homes for a month now, seen a wide variety of properties, and you're ready to take action. What's the next step?
Once you've made your decision, you must make a written offer to purchase, a statement of your intentions to buy the home based on certain terms and conditions, at a specified price. Here's how it works.
An “offer to purchase” is a unilateral document that is not binding until accepted by the sellers. You may withdraw your offer at any time prior to written acceptance by the sellers and delivery of the accepted document back to you.
An "offer" defines four primary points: 1) purchase price, 2) terms under which you will make payment, 3) date of possession, and 4) a “closing” date when the transaction will be completed. You may also spell out other terms of your purchase, such as a request for a survey, or requirement that certain repairs be made prior to closing.
Sometimes, the offer is not acceptable to the sellers. They may make changes in the offer, and make a "counter-offer," which would then require acceptance by the purchasers.
Once all parties have signed, indicating their accord, the document becomes a binding "agreement of sale." From then on, the agreement is carried out by all parties to reach a successful conclusion. Congratulations are in order!