Things to know when Buying a New Home
Buying a new or a first home is a major investment. Its one of the most important decisions of your life! Here are some things you need to know, and these are the things that we as professionals help you with.
PRICE
What price should you pick when you put an offer in on a home? How do you know if the seller is asking too much, or if its a great deal? You and your realtor need to research the market in order to understand what comparable homes are selling for before putting in an offer. Without this knowledge of market value, you could easily be making a mistake in your offer.
TITLE
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. This is something your Lawyer can take care of for you. Just make sure it is something you have all the info on, before you remove your conditions and make the purchase a firm deal. The last thing you want to learn once your purchase is final, is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases, etc.
SURVEY
As a term of the contract, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues. Make sure you know exactly what you are buying!
UNDISCLOSED FIX-UPS
Ensure that you conduct a thorough inspection of the home before making the deal firm. Get a professional inspector view the home inside and out. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost. It will cost you to hire an inspector, but its a little cost that could save you thousands of dollars and headache.
GET PRE-APPROVED
Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams. It would be a horrible let down to be looking for a home in a certain price range to find out its not what you can actually afford.
HIDDEN COSTS
Make sure you identify and uncover ALL costs. When a transaction closes, you will sometimes find fees sneaking through after the sub-total fees such as loan disbursement charges, underwriting fees etc. Make sure you know what you are paying to your lawyer, your realtor if any (The Mother Daughter Real Estate Team does not charge any commissions to buyers). Talk to your Mortgage Broker or Lender as well and have them project total charges for you in writing.
THE CLOSING
Take the time to review all the paperwork and maybe consider getting your realtor to take you for a second viewing a day or two before the closing. Make sure everything perfectly reflects your understanding of what you are going to be getting once the closing is done.
