It is wise to start from the bigger area, the community, and work to the smaller area, the neighborhood, before focusing on housing type decisions.
It makes sense to begin by first identifying a few neighborhoods that, potentially, may suit you. Then focus more closely on these areas for a “magnifying glass” viewing. It also always makes more sense to visit a home from the street prior to scheduling a viewing. This will save much wasted time.
Allow for tradeoffs that will facilitate your higher priorities.
Prioritize both your neighborhood and housing type search goals. It is unlikely you will get everything you want. Some neighborhood priorities might include commuting routes, availability of public transportation, proximity to stores and restaurants, proximity to good schools, and community recreational facilities. Some housing type priorities might include house size, style, number of bedrooms and bathrooms, and home special features, such as a gourmet kitchen, fireplace, walk-in closets, hot tub or swimming pool. Sometimes it is helpful to visualize your daily routine in the house, and to also visualize how your entire family would live and function in the house. Try imagining your furniture, its placement, and the traffic patterns and daily routines of all of your family members in relation to the home. Remember that while some features are easily changed (e.g., the carpeting, paint, curtains), others are not.
Better schools and lower crime translate into higher home values and better neighborhoods. The effect of both of these cannot be underestimated. Good police and fire departments also tend to be found where there are stronger home values and better neighborhoods.
Information about the neighborhood and immediate market is also very powerful during a negotiation.
When the time comes to make an offer, it is wise to have viewed all other homes in the immediate neighborhood that are for sale. This will enable you to clearly focus on the relative strengths and weaknesses of your target home vis-a-vis other homes. This comes as a big help during the negotiation process. It will also enable you to learn more about the neighborhood at a critical point in the buying process: before you are a neighborhood homeowner, not after.
When viewing a property, it is a good idea to take notes and a photograph of the home to aid in your later recollection of each home. Keep notes on all homes viewed, including a list of “whys” you would and would not want the home, and a similar list of positive and negative features.
View a property, at least twice on separate days, before making an offer. The old adage, “sleep on it”, does make sense. Give your subconscious the opportunity to digest what you have seen, heard and felt.
Once you have found a home that interests you, maybe even enough to make an offer, try to resist the temptation to stop looking. You will be better off, from a negotiation position, if you can imagine yourself in at least two candidate homes.
If the seller or seller’s agent is present at the time of viewing the property, remember that anything you say or do may be used against you: during contract negotiations. Comments about how much you like the home or how well your furniture fits may come back to haunt you. The best advice is to simply avoid letting the seller or seller’s agent know if you like the home. An emotional attachment to a home during contract negotiation could complicate your purchase, and may cost you plenty.
Always consider the investment potential of your home purchase as vitally important. Things change.
A dream home can become too small, or big, when circumstances change. The next relocation can and often does occur — sooner than you ever expected. Consider carefully the resale value of your home purchase — before it even becomes your home. To that end, consider carefully the schools, crime, shopping, access to freeways and rapid transit, and the general reputation of the neighborhood and surrounding area.
It has often been said that the prudent buyer will search for the most modest house on a more expensive street. Resale of such a home is easier, and the value of such a house is solid. The converse may also be true. If you are not concerned about resale value and plan to live in the home for many years, you may want to consider a property over-improved for its neighborhood. This sort of home will not repay the seller for the full value of their investment, and their loss may be your gain.
When viewing a house, distinguish between a sloppy house and one which has been poorly maintained. Sloppiness can be cured by a good housekeeping. Poor maintenance costs real money to cure. Oftentimes, a house that has been well maintained but is sloppy will be a bargain. The converse is also true. No matter how spotless a home is, when the sellers move you will inherit the condition of the home, location and floor plan.
Understanding “Bank-Owned,” “Foreclosure” and “Short Sale” Properties
