Top Buying Tips
(page 2 of 2)
5. A great home, in a questionable neighborhood, is
not a deal. Not only do you have to live in your new home, but the area
in which it is located. High crime, vandalism, arson or burglary are all
things that can plague you after you move in, and make it that much harder
to sell and get out if the need arises.
Like all other aspects of house hunting, research these issues and do
your home work. Contact an insurer who knows the local situation and tell
them you would like an estimate of what it should cost to insure the property
you have found. If their estimate seems high, ask them what the mitigating
factors were and use this information to secure your investment funds.
Take a good look around the neighborhood; do you see visible signs of
vandalism, abandoned properties or signs of arson or crime? If you do,
move on to another area and protect not only your investment, but your
family as well.
A few good ways to keep tabs on a new neighborhood, that you are home
shopping in, is to subscribe to that area's local newspaper. Read the
police blotter and check for crimes that may affect the specific area
you have chosen. Read the classified ads, are there a lot or a few homes
for sale? Is the job market depressed or healthy? What does the community
bulletin board report relative to local politics, school boards and the
like?
Take a walk around and talk to the locals, are they happy? Ask them how
long they have been neighborhood residents and what sort of changes, if
any, have they seen the area go through since they arrived. If you have
a family with children, are there other kids in the vicinity for your
kids to associate with? Check out the local parks and playing fields,
what do you see? Remember, neighborhoods are made up of families and you
want to be certain that yours is a good family neighborhood.
If you, or members of your family, are going to be commuting to work
or to school, within or out of your local area, check the local transit
and highway infrastructure. A long or hazardous commute can run into unexpected
costs and discomfort for you and your family.
6. Write it, don't say it. One way to insure any negotiation
is understood, get it all written down and confirm that all parties concerned
agree on what has been documented. This philosophy pertains to every aspect
of your property acquisition:
a. Real Estate Agent's agreement
b. Purchase Agreement
c. Loan Commitment
d. Any interest rate or points agreements
e. Estimates of origination and closing costs
7. If you are using a real estate agent, as we said
before, shop around. Try to find an agent who, not only has a good reputation
and track record, but one that has been working within your prospective
area for purchase for several years. His accumulative knowledge of recent
selling prices, market trends and demands are invaluable to you whether
you are buying or selling. Check the realtor out with the better business
bureau; ask them for at least three or four local references that have
recently bought or sold properties using their services.
Make yourself available to your agent once you have chosen them. Let
them know exactly what you are looking for in a property, and from them
as the agent responsible. Agents do not work for free and you need to
maximize that expense to the best of your ability.
8. Is the property that you feel is the right one for
you "out of place" for the area it is in? The comparative value
of a home may be poorly influenced if it is of much greater value than
the others within a given area. If the house is situated next to homes
of much less value, those other homes could bring down the value of yours.
Be certain that your home of choice conforms as much as possible to the
local standards.
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