Better Buying
Finding the Right Fit
Buying a home is probably one of the most important personal decisions - and investments - you can make.Sutton is committed to helping you make the right decisions by accommodating your special tastes, service needs and financial requirements.
My web site is a virtual utility drawer of tools and services for home buyers.
FREE Home Finder Service
There's never been a faster, easier way to find your next home! If youre planning to buy a home in the next 12 months, this FREE service will email you home listings matching your request as soon as they hit the market.
Please tell me a little about your ideal next home by filling in the form below
First Home, First Hints
Congratulations! You re about to move out of an apartment into your first home. What a great move, but you need to know a few things and buy a few things. Remember there will be no "building manager" to take care of things for you - you re it!
First things first. Let there be light, but where is the fuse box? Does it use fuses or just switches? (Hint: Label each switch with white tape and black letters so you can see them easier in the dark.) It s a good idea to turn the switches off and on a few times so you re used to how stiff they can be.
Water, water everywhere. Find the turn-off valve inside the house so minor floods don t become major. Make sure you know where the toilet turn-off valve is. Can you turn off the outside faucets in the winter? (Hint: you may have to leave one outside faucet dripping during the cold months so you don t burst the pipes during freezes.) Find the water meter and make sure it is functioning. If your garbage disposal stops working, find the red reset button on the unit under the sink. Before you turn it back on, check with your fingers to see if anything is blocking the blades, and then press the reset button. (Hint: Remove your fingers and the offending objects from the blades before turning the disposal on again…duh.)
Keeping warm and toasty. It s important to find the furnace. What kind of fuel does it use? If you have an oil furnace, ask how often you need to refill it and who refills it. Do you have a maintenance contract for repairs? If not, can you get one? If you re going to have to replace or clean the filters, where do you get them? (Hint: buy a couple of them, you never seem to need to replace them when the store is open.) Find the reset button and label it. Does the furnace have a fan for cooling the house in the summer? Where are the thermostats for controlling the temperature? No matter what the source of energy for your heating, find the main shut off valve.
Curl up by the fire. But make sure the fireplace flue is cleaned every one to three years, depending on how much you use it. Otherwise, the chimney may not draw well and "smoke gets in your eyes", which is not as romantic as the song. A clogged chimney can cause a fire, which is not cool.
Nothing like a long hot bath. Check the water heater to see if it has a pilot light. If it goes out, how do you re-light it? Find out how to set the temperature and decide what temperature you should set it to.
Your very own washer and dryer. Clean the lint tray on the dryer every load or two, or it will build up and slow down the drying process. Also, too much dry lint can cause a fire. If your washer drains directly into a utility sink, place a filter on the end of the hose to keep from clogging your sink.
How about a tall cold one? At least twice a year, clean the water tray under your frostless refrigerator, and vacuum the coils at the back now and then to keep it cooling effectively. (Hint: Check the seals around the doors of your refrigerator to make sure no cool air is escaping. If there is moisture on the rubber seal, you ve got a faulty seal.) Now pop open the cold one and toast your new home.
What Costs are Involved?
As you make your decision to sell and establish a fair asking price, there are some notable selling costs to consider:
•Home Inspection / Repair Costs
The buyer or seller is often required to commission a Home Inspection Report as a condition of the Contract to Purchase and Sale. Conditions within this contract may impose additional costs on the seller.
- Closing Costs
• Lawyer Fees - including a legal review of the Offer to Purchase, preparation of transfer of title documents, time to respond to inquiries from the purchaser s lawyer, drawing up any mortgage transfer documents, and execution of all other closing details
• Title Insurance - protection against any legal questions or loop holes on the title of the real estate or of legal priority of the mortgage
• Unpaid Property Taxes - sellers are legally required to pay off any outstanding property taxes from the proceeds of the sale
• Mortgage Fees - lenders my levy prepayment penalties or mortgage discharge fees
• Real Estate Services - the real estate commission will be deducted from the proceeds of the sale
- Moving / Storage Costs
Sellers should consider the costs of supplies, transportation and professional moving services, or alternatively, storage costs.
Costs and Considerations when Buying a Home
"Home is an invention on which no one has yet improved."
- Ann Douglas
In the excitement of beginning a search for a home, many people jump right in without considering all of the elements that make a home truly right for them. It is a complicated and personal process. An unsuitable choice can be costly in many ways - you could lose money, waste time and effort relocating, or even put your family s health in danger. The following are some things to consider when identifying your ideal home and planning a successful purchase.
Choosing a Neighbourhood
Remember that you can renovate a house but neighbourhoods take years to change and there s no guarantee they ll change for the better! On the other hand, if you really love a certain part of town but it s out of your price range you may want to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback: kitchen 70%, bathroom 68%, interior painting 65%, exterior painting 62%.
Tips on choosing a suitable neighbourhood:
- When you find a locale you like, walk around it. See what it s like from street level.
- Are the people friendly?
- Are there stores and recreation facilities nearby?
- Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable are there private/religious schools?
Figure out what you can afford:
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality - when we should have $400 left over, for some reason we only have half that.
Consider these basic costs of buying a new home:
· Most homes require a down payment of several thousand dollars.
- Monthly mortgage payments can be 1/3 of the average person s annual net income.
- You may want to pay for a home inspection. Consider more than just the structure. Ask the inspector to check for asbestos, radon, animal infestation and lead.
- Moving costs can be from a couple hundred to several thousand dollars depending on the distance of your move and the quantity of belongings.
Financing
The sort of home you can afford depends on several things:
· How much you have saved
· How much you earn
- Past earnings
- Your credit rating
The past has a way of haunting new homebuyers. If you are concerned about your credit rating you can usually get a free copy of your rating report from your local credit bureau. Normally all that s required is a couple pieces of photo identification. Remember, a few late payments or disputed bills can besmirch your record. Try to pay everything on time and don t have more than two credit cards. A bad rating can spell trouble getting a mortgage or you end up paying more for your mortgage as a form of insurance to the lender.
Pre-Qualification
This refers to documents from a bank or other lender indicating that you have the financing to back up your offer on a house. Pre-qualification is free and most lenders are happy to sit down with prospective buyers and figure how much they can afford. Having an accurate idea of price range will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive since financing is not in question. It is important to note, however, that lending institutions will base their final decision about a mortgage on ability of the buyer to service the debt as well as the property. Most lenders state that the two components go hand in hand - the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.
By taking all these points into consideration, you can worry less about the process of buying and get busy finding your ideal home!
