STYLETHREAD -- LET'S TALK SHOP!

Elle · Hermes

Tips: Buying a house?

halleybird · Hermes

Things I wish we'd done

-we bought new, but I wish we'd shopped around for lenders.

-I wish I'd thought about how far it was from work.

-I wish I hadn't bought such a big house for the two of us (stupid kids...we thought we'd be here for 30 years), because now that I will be moving to a more expensive house, it will be smaller and I'm spoiled.

I am GLAD someone gave us this advice:

-The important things in a house are unchangeable -- the lot size, the floorplan, height of the ceilings, the quality of the structure and the location. Other things (kitchen cabinets, doors, flooring, trim, paint, yard design, etc) are fixable. Don't get caught up in the "stylish" details.

-think about functionality -- is the laundry room near the bedrooms? If you'll have young kids someday, is the master bedroom close to or far from the other bedrooms? Is there enough storage space?

-don't do ARM or other interest-only mortgages if you think there's any possibility you'll be there longer than a few years.

-don't build flooring or other decorative details into your mortgage. The wood floors my mom had in her house (and eventually replaced with slate) were financed and will be in her mortgage price forever, even though she hasn't seen them in years.

-spend time driving around neighborhoods you like -- do it every week or so, and at different times of day. Pay attention to the neighbors (what they're doing, what they're driving), peek when they have their garages open, etc.

-check what the property taxes will be. This makes a huge difference in your payment. Where I live now, I only pay like $200/year. My mom's taxes have raised $2,000 in three years.

-find out whether they're planning to build any roads/freeways near your house.

-check the test scores of the schools in the neighborhood. Even if you don't have kids, the scores often reflect the involvement of parents, citizenship, etc.

Also, I am going to copy advice from AllyS in another house thread:

Tax Base: Does amount paid equal service? Do you need to pay for recycling and trash collection? This can really add up!

Explore your potenial Mayor, City Council Person/Alderman/person and make sure they have the same vision as you do! You need to move into a place where someone shares your vision, some are not necessarily elected out.

Investigate if any developers or big business is looking into your area, you could benefit or suffer.

That was long. Sorry. ETA: CONGRATULATIONS!

-- Edited by halleybird at 20:45, 2005-02-04

lsubatgirl · Gucci

quote:
Originally posted by: halleybird
" -I wish I'd thought about how far it was from work. "

I've never bought a home or moved in my entire life so I'm not much help but since you are moving to Houston I figured I'd better pipe up and tell you this is very important there. The commute times/traffic is horrible and if you aren't careful your commute could be a hour or more each way!

blink · Coach

Be aware of natural causes of damage that are or are not covered by insurance. I just heard a story on the news about some homeowners who did not realize they were in a sinkhole area and now the insurance won't cover mud damage to their fencing,yard and foundation that occurred when a sinkhole collapsed.

greendiamond · Marc Jacobs

Before you move to the area, call the local paper and ask for a mail subscription, or get the papers web site so you can check it out online. I would cut out/save the crime reports which are often broke down by neighborhood/street. This way you will know what areas of town are "good" before you get there. Also, you will be able to read about local elections, news, school board related items and so on, so you'll know what you are getting into.

Don't shop with a realtor who is pushy or askes you to sign anything promising to be his client. A good realtor will only ask you to sign something like that before you close so that they get the commision. My husband and I looked at 40-50 homes. I know we took a lot of his time, and he didn't make a huge commission off us, but we found the right home for us. Also, be upfront with the features you want, and don't look at homes that don't offer things you aren't willing to negotiate. If you must have a garage, don't look at a place that doesn't have one, planning to build one. You won't get around to it.

Make sure you hire an inspector before making an offer. They will tell you what is wrong with the home and what is in good condition. You can then negotiate with these things in mind. For example, if the furnace is 15 years old, you can try to negotiate a lower price sighting the old furnace that will need replacing. Have the radon tested, carbon manoxide, and water if it's a well. Also, the seller can buy a home warrent for little dough, and if anything goes wrong in the first year (appliances are covered too) the will replace or fix it.

Shop lenders and get a good rate. Also, look into bi-weekly loan withdrawls. Because the money is withdrawn 2x a month it pays down a 30 year mortgage in 23 1/2 years. And, it doesn't cost you anything more. Say your payment is $1000. Instead they will take $500 on the 1st, and another $500 on the 15th. The interest gets paid faster!

-gd

Joina · Kenneth Cole

Great tips, girls!

One more little one, if you are getting a mortage, definitely get a mortgage broker, they help you find the lowest rate and they are free for you (they usually are paid by the bank you choose to go with). Ask your real estate agent or your real estate attorney for any recs.