Advice for a potential first-time home buyer

If you get a good Realtor, you don't need to spring for a lawyer.

 

The inspection service you hire is working FOR YOU. Plan on it taking a couple of hours at least and stick right with the inspector. Ask a zillion questions and make sure you understand the answers. The home warranty plan should be paid for by the seller. It'll probably be good for a year and included in escrow. You can re-up that at your cost and they will hound you to do it. No advice on whether to do it. Depends on the condition of the property.

 

Really? I haven't bought as many houses as you have, but I'd say the reverse. Get the inspection done, anything wrong have your lawyer knock that off the price. I'm not a realtor or lawyer, but I know it takes a little more work to become a realtor than a lawyer.

 

I don't see the need for a lawyer. The realtor should be able to handle everything. If you've agreed on a price, after the home inspection, you can go back and ask for contingencies that you insist they fix or they reduce the price accordingly. Example: Say the inspection detects a leaky pipe under the house. You can include this on a contingency list. Owner gets the option of fixing it or reducing the price. If he says no, he won't do either, then it's a negotiation and you always have the right to pull out. I think you can pull out right up until you sign the final escrow papers.
When we sold our previous house, they came up with a contingency list that had about 15 things on it. We fixed about six of them, reduced the price a couple of thousand for a few others and refused to do anything with the rest. One of them was they wanted a new heating system. We said absolutely not, the heater works fine and you never need to use it anyway.
After my dad died, we tried to sell his house "as is." Even with that, they came back with a contingency list that totaled about $40K. We agreed because we wanted to be rid of the house and it was still the high bid by about $60K.
Another thing I've been advised to do is, if you're getting home loan, get it in advance. If you have proof from a lender that you are already approved for a loan, that makes dealing with the seller's agent a lot easier and makes you more attractive to the seller. The worst thing that can happen to the seller is for the buyer to pull out at the last minute or have the buyer's loan fall through.

 

Technicality: that's called getting prequalified for a loan of X amount. It can, as CL points out, help you immensely as you shop around for a house. You don't actually finalize the loan until settlement when the bank can then use the property as collateral as part of the mortgage. I know what you meant, CL. Just want to make it absolutely clear for KYsw.

 

Take a good look at the neighborhood, then do it again, and pay particular attention to those homes that make you say to yourself, "I'm glad I don't live next to THAT." Be it a lawn that hasn't been mowed in months or general maintenance that might indicate the homeowner can't or won't take care of his property, these things might grow into bigger issues and turn off prospective buyers down the road. If you can, chat up some people who already live in the neighborhood while they're out walking their dog, etc.; find out what they really like, what they really dislike, about living there.

As far as the nuts and bolts of the actual purchasing process, yes, a good real estate agent can be worth their weight in gold, but remember, they're not perfect. Just because they say X is a good price doesn't mean it won't sell for a number far from that.

Good luck.

 

Get a fixed rate.

 

Learn the age of every important system (heating, water heater, etc.), the age of the roof (!!!), when it was last painted, etc. That way, you can formulate a rough schedule for when you can expect expensive repairs or replacements, because things wear out after a predictable period of use.

 

You would trust a realtor more when you sign the closing papers than your lawyer?

 

Good advice here.

Bad neighbors can make your dream home a nightmare (I know, I'm one). So do your homework as best you can.

I think a nice covered porch in front or back is a great feature. So if you can find one that really increases the living, relaxing, entertaining space.

 

You don't seem like you'd be a bad neighbor.

 

Yeah, that seems ridiculous.

"Realtor" is one of the greatest scams going on the American public. They can help stage and market your home, but when you're entering into a financial agreement that's going to govern your entire life, they don't know or do jack shit. If anything hinky develops at the last minute -- and something almost always does -- the realtor is A) not going to have the chops to notice; and B) going to be far more invested in getting a deal done, any deal, and getting the commission.

Freakonomics, the original book, had a great chapter about a study of realtors. When they put their own houses on the market, those homes stay on the market longer, and go for a higher price, than when they are selling other people's homes. Now flip it as a buyer -- the $10,000 you want to save is going to be $300 less they get. It's an inherently conflict-laden business.