The Essential Guide to Reading and Inspecting Like a
Pro: A First-Time Homebuyer's Handbook
Congratulations! You've decided to take the plunge into
homeownership. This is an exciting time, but it can also be overwhelming,
especially for first-time home buyers. One of the most important steps in the home
buying process is doing your due diligence, which means reading and inspecting
the property carefully. This blog post will guide you through the essential
steps you need to take to ensure you're making an informed decision about your
biggest purchase yet.
1. Do Your Research: Read, Read, Read!
Before you even start scheduling house tours, it's
important to educate yourself about the home buying process. There are tons of
great resources available online and in libraries, so do some research and
learn as much as you can. This will help you ask informed questions during
viewings and avoid any nasty surprises down the road.
Some key things to read about include:
- The
different types of home inspections: A general home inspection is a
must, but you may also want to consider additional inspections for
things like radon, termites, and asbestos.
- How to
read a property disclosure statement: This document will list any
known problems with the property, so it's important to read it
carefully and ask questions if anything is unclear.
- Your
rights as a buyer: Knowing your rights will help you protect yourself
throughout the buying process.
2. Get Ready to Inspect: Be a Keen Observer
Once you've found a house you're interested in, it's
time to schedule a home inspection. But don't just rely on the inspector to
find everything. You should also be actively involved in the inspection
process. This means:
- Arriving
early: This will give you time to walk around the property on your
own and take note of any obvious problems.
- Asking
questions: Don't be afraid to ask the inspector about anything you
don't understand. The more you know, the better.
- Taking
notes and pictures: This will help you remember what the inspector
said and will also be helpful if you need to negotiate repairs with the
seller.
3. Don't Be Afraid to Negotiate: Knowledge is Power
The home inspection report is a valuable tool that can
help you negotiate repairs with the seller. If the report reveals any major
problems, you may be able to get the seller to fix them before you close on the
house. You can also use the report to negotiate a lower purchase price.
Here are some tips for negotiating repairs:
- Be
prepared to walk away: If the seller is unwilling to make the
necessary repairs, you may have to walk away from the deal. It's
better to do this upfront than to end up with a money pit.
- Get
estimates from contractors: This will help you show the seller what
the repairs will cost.
- Be
professional and respectful: Even if you're frustrated, it's
important to stay professional when negotiating with the seller.
Buying a home is a big decision, so it's important to
take your time and do your due diligence.
Bonus Tip: Get a Homeowner's Warranty!
A homeowner's warranty can help protect you from
unexpected repair costs. It's a good idea to get one when you buy a home,
especially if it's an older home.
If you have any questions, please feel free to leave a
comment below.
Happy house hunting!
Additional Tips:
- Hire a
qualified inspector.
- Get
multiple quotes for repairs.
- Don't
be afraid to ask for help from your real estate agent.
By following these tips, you can make sure that you're
getting the most out of your home inspection and protecting yourself from any
surprises down the road.
Property
inspection: Examine the physical condition of the
property. walk through turn on every water faucet/ light switch/ examine
underneath/climb on roof/ look at ceilings for patches/ inspect for leaks and
visible mold. The costliest repairs are roof, HVAC, basement leaks, foundation
problems...
Title
search: Ensure the property has a clear title
with no legal issues. A history of liens and recordings, plat map, boundaries,
a survey of the lot square footage/
Comparable
sales analysis: Review recent sales of similar
properties in the area. Comps are closed sales in past three months with a
conventional LOAN. Comps should be similar in lot size and home size square
footage. They also should have similar age, utility, view, and be in same tract
or neighboring streets.
Contract
review: Carefully read and understand all
contracts and agreements. If you do not understand something, send an email
inquiring. In real estate the only thing that matters is what is in writing.
Keep those emails.
Financing
options: Explore various financing options and
get pre-approved.
Local
regulations: Familiarize yourself with local zoning
laws and regulations. This can be either the city or county planning
department. They hold the records on construction of the site.
Home
appraisal: Get an
appraisal to determine the property's market value. A residential appraiser
usually has seen inside many of the adjacent houses by either appraising the
interior or walking through broker open houses. His or her valuation is an
opinion but considered true by lenders. Appraisers are licensed by the state. Uniform Standards of Professional
Appraisal Practice (USPAP) is a national standard that establishes standards
for all types of appraisal services. USPAP compliance is required for
state-licensed and state-certified appraisers involved in federally-related
real estate transactions.
Disclosures: Request
all necessary disclosures from the seller. The seller is supposed to provide
all non-permitted additions, any past hazard claims, any defects in
construction, any non-working items, and any problems with the title. An owner-occupied
seller has great obligations to disclose what they know about conditions of the
neighborhood as well as the subject property.
Negotiation
strategy: Work with your broker to develop
a solid negotiation plan. Or ask your lender for help.
Caroline Gerardo
NMLS # 324982
949 - 784- 9699
