There are six important things that I see many home buyers forget to do over the process of buying a home.
Today I wanted to talk about six common things that buyers forget to do when buying a home.
1. Factor in other expenses during the process. You need to think about the home inspection cost because you won’t get that back even if the deal falls apart. Also consider the cost of the appraisal, which is a fee you pay before closing. Then there’s the homeowners insurance binder for the whole year, which is also a fee you pay up front. Speak with your agent to better understand all of the additional expenses you’ll have before you pay the closing costs.
2. Consider the home’s resale value. When you buy, you have to think like a seller. Understand the location, and think about what your resale value would be if something happened and you had to sell quick and/or unexpectedly.
3. Root out any restrictions. Make sure your agent and attorney discuss any restrictions on the deed with you, like easements, right of way, or things you’re allowed to do in your subdivision. Make sure you have a good understanding of those restrictions and how they will limit your use of the land.
4. Make sure any work completed by the previous homeowner was done with a permit or to code. For example, if the seller discloses that they had their basement renovated, make sure you or your agent does due diligence to make sure the proper permits were pulled and signed off by the town, and that there are no open permits. This will help you down the road if you choose to pull another permit.
5. If you are buying a condo, get the scoop of the homeowners association. Make sure you request all the documents, the rules and regulations, and most importantly, make sure you request a copy of the budget. That way, you can see if the budget is in check, and you can see the reserve account and whether it is full. The reserve account is for things like damage to the roof. If that reserve account is weak, you’ll have to come up with a lot of money in a special assessments.
6. Do your homework on the neighborhood. Drive by the home at different times during the day, like at night and right after school, for instance. You want to really get an understanding of the area so you can ensure that the home has what you’re looking for, neighborhood-wise.
Hopefully you found these tips helpful for your next home purchase. If you have questions about any of these points or any part of a real estate transaction, give me a call or send me an email. I’d love to help you out.