Any advice for a first time home buyer?
- Thread starter Kara Bear
- Start date
- Joined
- Jul 26, 2003
Not sure about Canada.
Check if the property is in a flood zone. If it is , the mortgage company could require you to buy flood insurance, which is more expensive than standard homeowner's insurance. You can get out of the deal within a month of the offer being accepted if this is true.
Check if the property is in a flood zone. If it is , the mortgage company could require you to buy flood insurance, which is more expensive than standard homeowner's insurance. You can get out of the deal within a month of the offer being accepted if this is true.
- Joined
- Jul 26, 2003
Thanks,
Its a beautiful home in a cottage area by the ocean. If you stand in the front yard and look to the right, the ocean is 250 metres away. Its 46 years old but nearly everything has been redone within the last year. New roof, new floors, new kitchen and bathrooms. The only drawback is that it doesn't have a basement only a crawl space and the yard is really tiny. But I think with a nice fence and some help from my landscaper Dad, it will be a cute little lawn.
It appears as if the people who own it bought it to renovate and sell at a profit. It was assessed at 57,000 before the renovations. They are asking 115,000. Home are cheap in the Maritimes compared to most places but it is still a lot compared to the wages we earn out here. We are trying to figure out how much we want to offer for it and how exactly to make an offer. We are both a little scared of the whole buying thing. Is it common to get a building inspector to come in and look at things before the deal is sealed? I am nervous about any problems that may occur, although judging by appearances, most things look ok. Theres a little shed/garage that needs some work, but thats not a biggie.
Eeek. I'm just blabbering on. I'm so excited!
Its a beautiful home in a cottage area by the ocean. If you stand in the front yard and look to the right, the ocean is 250 metres away. Its 46 years old but nearly everything has been redone within the last year. New roof, new floors, new kitchen and bathrooms. The only drawback is that it doesn't have a basement only a crawl space and the yard is really tiny. But I think with a nice fence and some help from my landscaper Dad, it will be a cute little lawn.
It appears as if the people who own it bought it to renovate and sell at a profit. It was assessed at 57,000 before the renovations. They are asking 115,000. Home are cheap in the Maritimes compared to most places but it is still a lot compared to the wages we earn out here. We are trying to figure out how much we want to offer for it and how exactly to make an offer. We are both a little scared of the whole buying thing. Is it common to get a building inspector to come in and look at things before the deal is sealed? I am nervous about any problems that may occur, although judging by appearances, most things look ok. Theres a little shed/garage that needs some work, but thats not a biggie.
Eeek. I'm just blabbering on. I'm so excited!
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- Joined
- Jun 21, 2003
It is not only common, in most places it's the law. The seller must pay for the inspection and must fix whatever the inspector finds that is not up to code. If you are getting a conventional mortgage through a bank, the bank will also have its regulations about that.Kara Bear said:
Is there a real estate agent involved, or is it just you and the seller? Sometimes a real estate agent (or lawyer) will give you advice for a set fee, but will not charge a commission if the deal is already done between the buyer and seller.
There are at least two realtors on this board, Realtorgal and Aloft. Maybe they will respond.
If you love the house, that's the main thing!
- Joined
- Jul 26, 2003
I don't know if you can do this there but is done here a lot. You can buy some kind of insurance that will pay for anything that happens that you didn't anticipate or the owner didn't know about. Usually, the seller and the buyer each pay
half. My daughter had it when she bought her 100 year old house but the people they sent to fix things were not very good at doing whatever needed doing. I plan on looking into it if I buy a "used" house.
half. My daughter had it when she bought her 100 year old house but the people they sent to fix things were not very good at doing whatever needed doing. I plan on looking into it if I buy a "used" house.
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- Joined
- Jul 28, 2003
Kara Bear:
My husband and I just bought our first home last October and boy we thought we did our homework, but found out we could have done better. Yes, it is a good idea to get an inspector, but as we found out they don't always tell you everything. We are just finding out some of the things not mentioned to us. Another thing we did not know is you can with some banks have your property taxes included in your mortgage payment. Unfortunately our credit union does not offer that. We have one lulu of a property tax bill to pay in July!!!
Just make sure you do your homework and if there is anything you are not sure of don't sign anything!!!!!!
Good luck!
My husband and I just bought our first home last October and boy we thought we did our homework, but found out we could have done better. Yes, it is a good idea to get an inspector, but as we found out they don't always tell you everything. We are just finding out some of the things not mentioned to us. Another thing we did not know is you can with some banks have your property taxes included in your mortgage payment. Unfortunately our credit union does not offer that. We have one lulu of a property tax bill to pay in July!!!
Just make sure you do your homework and if there is anything you are not sure of don't sign anything!!!!!!
Good luck!
- Joined
- Jul 26, 2003
The bank will require a home inspection. The inspector looks for suspicious things and checks to make sure everything works (at that time). You should be at the inspection - a good inspector will point out things that you could do for maintenance (ie. where the emergency cutoffs are, how to change the air filters, etc). He'll observe the water pressure and check all the appliances.
Then, he submits a report. Anything considered in poor condition can be used to re-negotiate - either have the seller fix it or negotiate the price down to cover the cost of the repair. The things that are in fair condition can be negotiated by the lawyers if it is something that you want fixed. He'll also make sure that property meets 'code'.
The house inspector might also tell you about other things you might need done before closing. During my former boyfriend's inspection, the inspector mentioned to the owner and boyfriend that he needed to have something certified by the local fire dept and that it was the owner's responsibility to get it done. Without this certification, the closing could not have gone forward.
So, get a good home inspector - especially if you're not using a good realtor. In my boyfriend's case, he was working with YHD which only charges a 2% commission to the homeowner. You get what you pay for - they only post the listing on their site and then make the phone calls between the seller and buyer. After that, they do nothing.
Based upon personal experience, most homeowners are willing to accept about 7 % to 10 % below listing price. So, you should start somewhere below that if the market is slow to allow some negotiation room. If the market is Hot, you should probaby start at the 10% below mark. JMO - I'm not in real estate.
Then, he submits a report. Anything considered in poor condition can be used to re-negotiate - either have the seller fix it or negotiate the price down to cover the cost of the repair. The things that are in fair condition can be negotiated by the lawyers if it is something that you want fixed. He'll also make sure that property meets 'code'.
The house inspector might also tell you about other things you might need done before closing. During my former boyfriend's inspection, the inspector mentioned to the owner and boyfriend that he needed to have something certified by the local fire dept and that it was the owner's responsibility to get it done. Without this certification, the closing could not have gone forward.
So, get a good home inspector - especially if you're not using a good realtor. In my boyfriend's case, he was working with YHD which only charges a 2% commission to the homeowner. You get what you pay for - they only post the listing on their site and then make the phone calls between the seller and buyer. After that, they do nothing.
Based upon personal experience, most homeowners are willing to accept about 7 % to 10 % below listing price. So, you should start somewhere below that if the market is slow to allow some negotiation room. If the market is Hot, you should probaby start at the 10% below mark. JMO - I'm not in real estate.
- Joined
- Mar 19, 2006
heyang said:
Fantastic advice!!!! My friend from High School does this in Colorado. He is also an Architect - it seems to be common in the Home inspector "world." I summed it up when I gave him the slogan "Peace of Mind Pays For It's self."
If you sleep better your house is more of a home. Follow them through your house, ask questions rather then suggestions. i.e. "Is it necessary to check every corner of the Attic? What is a double tap?"
Google searches are best when you phrase the question as an answer without the answer. Like... home inspectors look for _____ when inspecting a home.
Good Luck, and if you need a "man slave" I am avalible for nothing but a room and net to chat about FS - I'll grow and hunt / fish.
J/K
good luck with you new endeavor!
