This may be bizarre, but surprisingly enough, intelligent buyers begin by not analyzing statistics; rather, they assess if they can see themselves living in the property.
If they can’t, no analytical spreadsheet will change that. On the other hand, if they can, then the extensive analysis occurs from there.
The A-Ha Moment
Many people presume an extensive amount of time is needed to appraise a property. However, for many buyers with some level of experience with buying homes, this is often determined in a matter of minutes, not because they want to rush through the evaluation, but because of the speed at which the clarity of decision occurs.
Analysis can occur within 5 minutes, sometimes up to 30 minutes. However, if you’ve walked through the property for the 30th minute and you’re still second guessing yourself, that hesitation should indicate to you to reconsider your position.
Before beginning to worry about price or interest rates or negotiating, stop and ask:
- Does this home fit my lifestyle?
- Can I see myself living here?
- Does it feel natural or awkward?
- If the answer is no to any of these questions, it could lead to a very costly mistake in the future.
Don’t Let the Rain Ruin Your Ability to Make an Informed Purchase
Many people don’t consider weather during the evaluation process when purchasing a home; however, it can actually assist you in your decision-making process if you encounter bad weather.
If you tour a house during rainstorm weather, you will be able to spot problems that can’t be seen if the weather is sunny.
For example, if there is a roof leak; if there is an issue with drainage; if there is water pooling around the foundation.
When it comes to fixing a house, water issues tend to be extremely costly.
Finding a water issue before it becomes major can save you thousands of dollars.
House hunting in rain is not usually presented as valuable, but it is extremely intelligent.
Your Eyes, Nose, and Ears
Looking at a home is not the sole contribution to the decision to purchase; you will also rely heavily on your senses.
Use your Eyes to Determine:
Condition of homes immediately surrounding the property you are considering purchasing; Maintenance of the home you are looking at and also how much space exists between you and the adjacent home(s)
Use Your Nose to detect:
Any odor created by gas or other chemicals; Pet odors – they may be present longer than you would like, often these odors are very difficult to fully remove.
Use Ears to listen for:
Other neighbors; Traffic noise; signs of thin walls or poor insulation…
These are all pretty obvious signs but they can lead to many serious hidden issues.
The Neighbourhood, Not Just the Home
Although you are able to make many renovations to your house such as renovating your kitchen or painting the walls but you will not be able to change your neighborhood.
Before you become too emotionally attached to the property, you must consider the following points:
Is it safe and comfortable in the neighbourhood at night; how far each is from my work and from the places I visit daily, and lastly what the atmosphere in the neighbourhood seems like.
An underrated tip for finding out more about the neighbourhood is talking to the neighbours.
Knock on someone’s door or visit them after hours to speak with them about their property for sale. You may hear valuable insights that other listings do not provide.
When you’re able to picture yourself living in the property, then the next step is to determine the actual costs associated with that home purchase.
There is more to home ownership than just mortgage payments. You will also want to consider:
- Property taxes
- Homeowners insurance
- Maintaining your home
- Any HOA dues or other fees
Working with a lender can help because they can provide financial scenarios and let you see what amount you can actually afford rather than just what looks good on paper.
Inspections are very important (and in most cases non-negotiable).
In this very competitive market, you might think it would be acceptable to skip an inspector. However, it is not worth the risk.
Before making an offer, make certain that a competent inspector has examined:
- The roof for any damage or deterioration as well as how it was constructed
- The foundation of the house for stability
- The heating, air conditioning, plumbing and electrical systems
Additionally, you should always attend the inspection. Hearing explanations as things are pointed out will help you gain a deeper understanding of the home; reading a written report does not give you that type of insight.
Finally, you should remember that there may be surprises during the inspection process even if it goes well. It is always best to allow some money in your budget for unexpected expenses when purchasing a home.
Changing Market Conditions Impact Everything
This is the area that many new homebuyers don’t factor into their decision: The market dictates how much negotiating power you have to pay.
- If you’re in a seller’s market, you may have to compromise to make the sale.
- If you’re in a buyer’s market, then you have the upper hand on making a deal.
When you have a sense of what the market looks like, this will keep you from having unrealistic expectations and losing out on opportunities.
If you are looking for an advantage to help you, other than money, look to the people around you.
A good real estate broker will:
- Provide guidance when making decisions;
- Assist you with Identifying potential pitfalls; and
If someone doesn’t take the time to answer your questions, it could be a warning sign. There is no reason to feel rushed or dismissed when making a decision as large as purchasing a home.
Buying your first home can be a daunting proposition with all the variables being financial, emotional, timing and pressure from the housing market.
This is how the process is simplified:
1) Finding a home that feels right
2) Figuring out what the true cost will be
3) Making sure that the property’s condition is good before buying
4) Making decisions based on logic and gut feeling
Everything else is just details.
The best home is not necessarily the least expensive or newest, but rather one that makes sense financially and fits your lifestyle.
So when you go into any property, don’t immediately grab your calculator!
Ask yourself, “Can I live here?”
If the answer is “yes,” then continue on with the decision-making process.
