6 Things You Should Look for When Buying a House

6 Things You Should Look for When Buying a House

6 Things You Should Look for When Buying a House

What things do you need to look for when buying a house? Before you walk into a deal that decides the next few decades of your financial future, know the warning signs you need to watch out for. Buying a house can be a process full of twists, turns, and pitfalls, and you'll want all your wits about you to keep your savings and your credit as safe from a money pit nightmare as possible.
Warning Sign #1: The home is in short-sale or foreclosure.

Yes, you can snag a great deal this way, but things can get complicated quickly. Many of these homes are not available to the average buyer, and are sold at auction to banks and investors. Fox Business reports that you should "make sure to know the status of a home and whether or not it’s short-sale eligible or purchasable if in foreclosure. If not, you may be making an offer on a home that a bank already owns." If the home is available for sale, be prepared to hire the best inspector you can afford, and listen closely to what he has to tell you about the state of the home. Many people who are forced to leave their homes have been in dire financial straits for quite a while. That means that maintenance and repairs could be ignored for years, causing major structural issues to the home that you just don't want to deal with.

Warning Sign #2: The seller worked on the house by himself.

If the seller is a talented carpenter or building contractor, this isn't such a big deal, but if he or she is your average do-it-yourself type, this can be a major red flag. According to Fox Business, outdoor decks that are built improperly can cause water damage to the foundation and walls. Wiring run by amateurs can cause house fires. Plumbing issues can destroy property. And room additions, or basement and garage conversions, can mean that a house is no longer up to code, and that translates into very shaky resale values. A good inspector can help you get an idea of the extent of the damage you might face, so if you suspect any homemade home improvements, be prepared to take copious notes at inspection time.
Warning Sign #3: The neighborhood is headed downhill.

Michael Corbett, a Trulia real estate expert says, "You're not buying a house; you're buying a neighborhood." The location of the house affects your resale values, your quality of life, and your enjoyment of the home. You won't care so much about how pretty your new front porch paint looks when you don't feels safe sitting outside at night. HGTV Front Door lists a few more things to look for: "Are there several other homes for sale? Are nearby businesses boarded up or vandalized? Get the scoop from the neighbors. If everyone else wants to leave the street, maybe you should, too." If you don't yet have children, it's not too early to take them into account. Would you feel all right about letting your kid ride his bike down the sidewalk? Are the schools failing? Is the traffic heavy in the evening? Show up at several times of day to see how the area changes from morning to noon to night. You might find that it's not exactly your cup of tea.

Warning Sign #4: The inspection raises serious red flags.

The deal might be sailing along swimmingly, and then the inspection happens, and suddenly things get very real. Keep in mind that the inspection is for you, not for the bank. That's why you might not want to go with the first guy your agent recommends. You'll want someone with great references, who knows exactly the right things to look for. Most houses will pass inspection, unless they have huge problems. What you want to know is not whether the house passes, but what you'll be dealing with if you buy it. A good inspector will tell you about major structural issues, roofing and plumbing problems, pests, signs of disrepair, utility shutoff locations, and a host of other tiny details you will need to know, whether or not you go through with the deal. Broker associate and Realtor Cara Ameer advises that if the estimated repairs start to creep upwards of 2 to 3 percent of the house's price tag, it's probably time to reconsider buying the house.

Warning Sign #5: The appraisal value is lower than the price tag.

If you decide to go with an FHA loan, as many first-time home buyers do, a thorough, independent appraisal will happen before the deal is sealed. This appraisal is primarily for the sake of the Federal Housing Authority, but you can benefit from the information it turns up as well. If the home appraises for an amount lower than the asking price, your deal could be in trouble. The lender will often refuse to authorize a mortgage at a price higher than appraisal. That means that in a housing market where homes are routinely overpriced, you could end up being asked to pay the difference out-of-pocket. If the seller is unwilling to back down from the inflated price, it's probably best to walk away. According to the SF Gate, the appraisal also considers safety, longevity of the house, local resale values, the economic trends in the surrounding community, and many other factors that can sink your future investment.

Warning Sign #6: You're afraid to back out of the deal.

Your ability to walk away is your last, best buffer of safety in the negotiation process of buying a home. But it's easier said than done. Many buyers become emotionally invested in a house long before buying it. If you find that the inspection, the numbers, and your instincts are telling you to run, but your fears or affections are telling you to keep going, it's probably time to put a hold on things. You need to know that this is a house you can afford, one that will meet your needs for at least the next decade, and one that will be safe for you and your family. If you can't realistically see yourself walking away from the deal if the need arises, it may be time to check your gut again, to see if the thrill of the chase has clouded your judgment.

If you do end up buying the house, there are still a few more things to look out for. One of them is a bum deal on homeowners insurance. If you don't sign up for a policy right away, the bank might recommend one to you. This is usually not the best deal around. Independent insurance agents are a great resource for information and help. Agents in the Trusted Choice network can shop a long list of insurance providers to find exactly the right coverage for your new home, at a price that fits your budget. Plus, these are local agents who can advocate for you if you ever have to file a homeowners insurance claim. Now that you know the big things to look for when buying and insuring a house, you can go get your dream home with confidence.


open student loan : https://www.trustedchoice.com/insurance-articles/home-family/things-to-look-for-when-buying-house/