LESSON 6: Searching for your new home
What's better than looking at homes or condos and
considering the possibilities?
Searching for your dream home can ALSO wear you out
really fast if you don't plan your approach and organize your information.
WHAT'S THE MARKET LIKE?
BEFORE you put on those walking shoes and head out the door,
check out the market.
Focus on the areas or neighborhoods you are most interested in.
(Pull out the Chicago and Suburban info from Lesson 2.)
Work with your agent to determine home prices and trends
in your chosen areas.
- Are you looking at a buyer's or seller's market?
- What is the median home price?
- Are prices rising or falling?
- What kind of properties are selling?
- How quickly are properties selling?
The internet can be a good tool for researching prices
and trends. Just make sure your agent verifies the accuracy
of the information.
REALLY LOOK BEFORE YOU LEAP!
You need to to get to know neighborhoods that interest you.
Visit the areas during the day and at night.
Drive and walk around the block if possible.
- Will you be close to transportation you need?
- Can the kids easily get to school?
- Can you walk to shopping and local services?
- Do you like the look of the blocks and homes?
- Will it be easy to jog or bike in the area, day or night?
- What kind of neighbors will you have?
WHAT ARE THE HOMES LIKE?
Check out the most common home styles in the area. What are the appreciation rates and recent sales
histories of particular home styles? List the pros and cons of each style with regard
to your needs.
EXAMPLE:
A typical Chicago bungalow may not have the layout you need.
So you may not look in areas that have mostly bungalows.
IS A PLANNED COMMUNITY IN YOUR FUTURE?
- Check out rules and guides for building and renovation.
- What community services are offered? What do they cost?
- What are the general life style guidelines/restrictions?
- Who lives there? Retirees? Families with children?
IS NEW CONSTRUCTION YOUR DREAM?
- Check out the builder's reputation and track record.
- Visit completed "lived-in" properties by that builder.
- Talk to people who bought homes or units from that
builder/developer.
- Ask your agent to find out the builder's reputation.
IS A CONDO YOUR IDEAL HOME?
- Research each building's finances and management track record.
- Are special assessments planned? Is one going on now?
- What major capital expenditures are coming up, and when?
- Is there a healthy reserve fund/adequate working capital?
Have your agent check condo association accountants to get an
idea of acceptable levels for reserve funds and working capital.
BEGIN YOUR SEARCH WITH A PLAN
REALITY: You WILL fall in love with homes that aren't right.
SOLUTION: Guidelines will keep you on track.
- Make a list of what you want most in your new home or condo.
- Take your "shopping list" with you on all searches.
- Give your agent a copy of the list to make sure he or she
is showing you property that fits your needs.
- Use the MLS to make the most of your search.
Multiple Listing Service enables your agent to get you
complete information on all properties that match your needs.
KNOW WHAT YOU'RE LOOKING AT
- Don't worry about looking like a TV detective.
- You're the buyer. Take your time looking around.
- Ask lots of questions.
- Ask your agent to point out features and drawbacks.
- Have your agent engage the seller while you look around.
- Envision the house empty, or with your stuff in it.
IF YOU REALLY LIKE THE PLACE:
- Ask to come back again at a different time of day.
- Ask the seller if you can see maintenance records.
- Make note of distinctive features that will add value.
Sometimes it's good to "know when to fold 'em" as the song says.
Here are some red flags to watch for:
- Taking on a home that "needs work"
- Buying a home that is NOT a good match
- Going WAY beyond your budget
- Signing a contract WITHOUT a thorough inspection
- Making an offer BEFORE you know WHY the seller is selling
- Jumping at the first house or condo you see
IF YOU FIND YOURSELF IN ONE OF THESE SITUATIONS:
- Stop and weigh the possible consequences
- Depend on your agent's counsel
- Be ready to walk away and keep looking
- DO NOT go forward if something doesn't feel right
Next: Make Your Offer |
