Tips for Buying a Home

Cash After Close
Most buyers are so focused on the cost of acquisition that they forget about the overall cash requirements of buying the home of their dreams. Money is Money whether or not paid on the front end. After all, fifty bucks is fifty bucks.

Martha and George went to the County Fair every year, and every year George wanted to take a helicopter ride. Every year they asked the pilot how much it would cost and the pilot always responded fifty bucks, to which Martha replied, shaking both her finger and her head, "No, George. Fifty bucks is fifty bucks."

After the fifth year, when George again asked how much the helicopter ride cost, the pilot responded, "You've asked me that for the past five years, and every year you decide not to fly. It's slow today, so I'll make you a deal. The price is still fifty bucks, but if you keep quiet throughout the whole flight and don't utter a sound, I'll fly you for free."

George looked at Martha and she nodded consent, saying to George, "You better keep your dadgum mouth shut George, 'cause fifty bucks is fifty bucks."

They took off and the pilot did his best to get them to speak, swinging violently sideways and up and down, but no sound came from the back seat. When the awed pilot landed, he went to shake the hands of his victorious passengers, only to find that Martha was not there.

He asked George where Martha went, to which George replied, "When you made one of those exciting sideways sky turns, Martha fell out. I almost said somethin', . . .  but fifty bucks is fifty bucks!"

What repairs can I afford and when will I have to pay for them?
There are two types of repairs:

Required, either to make it safe and sound or required by a lender prior to funding
            * Paid in cash by the buyer - this is problematic as;
                a. The buyer is making repairs to a property they do not yet own
                b.  What happens if escrow does not close?
                c. Has the seller given permission to make repairs, thereby acknowledging responsibility for liability
                    of injury or lack of workmanship?
                d. Contractors cannot successfully lien properties unless the owner contracts for repairs.
            * Paid by the seller as a credit to the buyer.
                a. Repairs must be approved by the seller with the same liability as above
                b. If repairs are lender required, must be done prior to funding and close
                c. If escrow does not close, seller takes on the responsibility for payment
            * Paid through escrow
                a. Funds are set aside in escrow specifically designated for repairs, work is completed and
                    contractors paid through close of escrow. (This is typically how section 1 termite work is done)
                b. Funds are held by escrow after close and are then paid to make lender required repairs.
                    Some lenders will agree to this, some will not, but it is the only safe way of doing lender required
                    repairs for both buyer and seller.

Wanta's - repairs that make it your home can be done later BUT,
            * Such repairs will have to be done out of your valuable cash or high rate credit cards
            * When you buy a house that already has the landscape, interior and exterior you want, it may have a slightly higher,
                but not significantly more, price tag, but you are financing the improvements over thirty years in your home loan.

What repairs am I willing to do myself?
Before making this decision there are a few questions you should answer for yourself.

What is my price range?

Which neighborhood?
Selecting an affordable neighborhood is probably the most difficult decision a buyer can make and is purely subjective. A neighborhood in a bad school district may make all he difference in the world to a Mom with school age children, but means nothing to DINKS (Double Income No Kids) or retirees. Some people prefer the city, others may like the farm. There is no real good way for an agent to pick the criteria out for you. Think about what will be important to you over the next few years and write it down. Your REALTORŪ will help you find the neighborhood you describe.

What neighborhoods do I like or dislike?

Things to think about in a neighborhood:

PLEASE: You cannot ask how many LGBT, Muslim, Jewish, Christian, Black, Hispanic, Asian or White families live in any given neighborhood. Answering that question can cost an agent their license, and is something we do not allow at Elevate.

Taking the Heat
JOB CHANGE, DIVORCE , MARRIAGE, BIRTH, ILLNESS, DEATH, and MOVING are the most stressful experiences in life.  Often most of the list works in tandem with moving. Try not to add a third element. You will already be under some stress with any two of the above.

Apologize to your significant other and family daily. It is a surety that you have somehow stepped on their toes will focusing on your pursuit of a home. Looking for a home is like dating, both stressful and exciting, but the end result is worth the temporary pain.

Minimize stress:

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Steven R Sanders©
 
 
 
 
 
 
 
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