Improve Your House-Hunting Skills

Your Rights As a Home Buyer or Seller PDF File
To view this file you will need to have the Adobe Reader installed on your computer. If you do not have this software you can click the box to download it.

<---Download Adobe Reader for Free.

If you're having difficulty finding a home to buy, here are six ways to maximize your opportunities:

1. Find a good agent in the area or areas where you want to buy.

To protect yourself when you buy a home, adopt a long-range horizon. Don't buy unless you plan to hold the property for at least 5-10 years. This way you can ride out any downturns in the market and sell when the market improves. Try to avoid getting into a situation where you are forced to sell in a down market. If you have any questions about how long you'll be staying in the area, postpone your buying plans until there's more certainty in your life.

2. Make sure that you and your agent are on the same page.

Share your wish list with your agent. It's a good idea to visit at least several homes with your agent initially to make sure that you and your agent agree on what it is that you want.

3. Look at every listing that might work for you.

This is how you learn the idiosyncrasies of the local housing market. After you look for a while, you may find that your wish list is too restrictive. You'll have to compromise no matter what or where you buy. But, before you can decide how you'll be willing to compromise, you need to know what your options are.

For instance, you may ideally want a three-car garage. After looking, you discover you'll be lucky to find a two-car garage in the township where you hope to live. So, you will need to make a choice. Either you drop the requirement for a three-car garage, or you start looking in townships where three-car garages are available. Be sure to let your agent know if you make changes to your wish list.

4. Broaden your search to increase your options.

You might consider more than one town or area. Or, you might open yourself to different architectural styles. The broader your options, the more listings you'll see and the less frustrated you'll become.

5. Don't overlook expired or withdrawn listings.

Recently, home buyers who were having a difficult time finding a home to buy asked their agent about a listing they saw months before when they first started looking. The listing hadn't sold. The listing was off the market. The buyers' agent contacted the previous listing agent who said the sellers were planning to re-market the house. The buyers made an offer before the listing went back on the market. It was accepted and the transaction closed.

6. Finally, get preapproved from your lender.

 Sellers will be more willing to accept your offer knowing you have your financing in order.  Sellers are more motivated to negotiate with someone who already has a mortgage approval in hand and lets the seller know they are working with a genuine buyer.

To buy a home, you always have to do some negotiating. Even if the seller doesn't haggle over the offering price, you still need to negotiate whether to include appliances and other household items in the sale, and what contingencies to include in the sales agreement.

When negotiating:

Keep the sale in perspective	Remember nothing is final until you have the key in hand, so you don't set yourself up for greater disappointment if the deal falls through. Even if you're in a hot (seller's) market and houses are moving fast, try not to get caught up in the frenzy. You may not get a house you want, but there will always be other houses.
Stay objective	Maintain some emotional distance so you can negotiate well, and refer to your comparative market analysis (CMA) often so you don't overpay.
Don't let time pressure get to you	You may have to act more quickly in a hot (seller's) market, but consider your decision carefully, weigh the inflated price against the home's true market value and make sure you're aware of any defects before you buy. Prioritize your tasks so you don't get overwhelmed. You have to meet certain deadlines imposed by the sales contract, but many other things--like planning a remodel--can be put off until after you move in.
Be prepared for unexpected problems	Every transaction hits a few snags, but most of them are solvable problems. Think through some common problems and how you can resolve them.
Don't be afraid to walk away	Remember that ultimately you have the power in negotiations because you don't have to buy the house if you don't get the terms you want.

Questions to Ask When You See the House

Take this checklist along when you visit a home and talk to the listing agent. Make note of your own observations, watch for defects, and ask about anything you may not see on your own.

-  What is the visible condition of the property?
Poor exterior condition may spell problems inside.
Your notes:

-  Does the house require major repairs or replacements?
Major repairs, such as a new roof, can be costly. Consider the cost if you decide to make an offer.
Your notes:

-  How old are the mechanical systems?
Consider the cost of replacing older systems if you decide to make an offer.

Electrical	___Years
Plumbing	___Years
Heating	___Years
Air Conditioning	___Years

-  Has the house been well-maintained?
Ask the sellers if they have kept any maintenance records.
Your notes:

-  How is the house positioned on the lot?
Be sure the area around the house is graded properly to provide good drainage.
Your notes:

-  Are there noteworthy architectural features?
Front porches, gables or other details add value to the property.
Your notes:

-  Are there noteworthy landscaping features?
Established trees, shrubbery and perennials add value to the property.
Your notes:

-  What is the condition of the houses on either side and across the street?
If neighboring properties are too run-down, they may affect your resale value.
Your notes:

---

-  How close is it to shopping and schools?
Nearby services can also add value.
Your notes:

-  Are there community amenities nearby?
Parks or recreation centers can add value to the property.
Your notes:

-  How long has the house been on the market?
A long time on the market may indicate problems with the house or neighborhood that you need to know.
Your notes:

-  Why does the seller want to sell?
If there's a problem with the house or the neighborhood, assess the situation carefully.
Your notes:

---