Tips for Buying St Louis Homes
Create a list of Questions, and Answer Them at Each Home You Visit
The house you ultimately choose to call home will play a major role in your family’s life. A home can be an excellent investment, but more importantly, it should fit your lifestyle, with spaces and features that appeal to everyone in the family. At each home, pay close attention to these important considerations:
- Is there enough room for you now, and in the near future?
- Is the home’s floor plan right for your family?
- Is there enough storage space?
- Will you have to replace the appliances, carpet, or mechanicals?
- Is the yard the size that you want?
- Are there enough bathrooms
- Will your furniture work in this home?
Bring your own notebook and pen for note taking and a flashlight for seeing enclosed areas. Be prepared to “snoop around” a little. After all, you want to know as much as possible about the home you buy. Sellers understand that because their home is on the market, it will be looked over pretty thoroughly. Be sure to ask any questions you have about the home, even if you feel you’re being nosy. You have a right to know. It’s important to know that the seller will supply the buyer with a Seller’s Disclosure, which is supposed to disclose any defects known by the seller.
House Hunting Tips: When you find a home you may be interested in buying, make sure to ask the owner the following questions:
- How much money do you pay for monthly utilities
- What features have you enjoyed most about living in this home?
- Are there defects or problem areas that need to be fixed?
- How old is the furnace and central air conditioning system?
- How old is the roof? Have you experienced any leaking?
As a rule of thumb, ask any questions you have about specific rooms, features or functions. Pay particular attention to areas that you feel could become “problem” areas-additions, defects, areas that have been repaired. And above all, if you don’t feel your question has been answered, ask until you do understand and are satisfied. In most cases, we will be able to provide you with detailed information.
Consider the Community
Good city services, nice parks and playground facilities, convenient shopping and transportation, a track record of sound development and good planning-these are just a few considerations that are important to many people when they choose a community in which to live.
Some questions to ask yourself, when looking at a specific neighborhood; Even if you plan on living in the house forever, you must consider how this home would sell in the next three, five, or 10 years down the road? How is the school district, how close are shopping centers, what are the neighbors like, what kind of condition and size are the other homes around it, and if it’s a newer home how soon will the subdivision be completed?
Have Your Agent Perform a CMA for Properties You’re Serious About
To make sure the house you’re interested in is priced comparably to other similar homes sold near you, you’ll want to have a Comparative Market Analysis (CMA) report performed. This will tell you recent sale histories, sale prices (or average sales prices), average days on the market, original listing price compared to sales.
If you’re interested in a particular home, we can provide you with a Free Comparative Market Analysis of the home. Just shoot us an email or give us a call today.
View Top Choices a Second Time Before Buying That First Home
After touring homes for a few days, you will probably have a good idea which one or two homes you would like to buy. Go see them again. You will see them with different eyes and notice elements that were overlooked the first go-around.
At this point, your agent should call the listing agents to find out more about the sellers’ motivation and to double-check that an offer hasn’t come in, making sure these homes are still available to purchase.
Base Your Offer off the Market Price, Not the Home’s Listing Price
There is really no rule to use in calculating a realistic offer. Naturally, the buyer wants the best price and value and the seller wants the highest price, but negotiations can be influenced by many factors, such as a seller who may be changing jobs and wants to sell quickly, or a buyer who really wants a specific home. However, using a CMA or professional appraisal will give you an idea of the true market price, so you can make a fair offer. You’ll want your starting bid to be roughly 5% lower than the estimated market value; this is your starting point, and gives you a little room for negotiation.
Most buyers and sellers negotiate on price until both agree. When the price is agreed upon, the paperwork will be signed and initialed as needed by both parties. At that point, you typically will begin the process of arranging for a home inspection.
Select a Reputable Home Inspector
For your own safety, and to make sure you’re getting your money’s worth in the home you choose, using a professional home inspector is highly recommended. A home inspector will check a home’s plumbing, heating and cooling, electrical systems, and look for structural problems, like a damp or leaky basement.
Usually, you call an inspector immediately after you are “In Contract” on a home. However, before you sign any written purchase offer, make sure that it includes an inspection clause or other language which says that your purchase obligation is contingent on the findings of a professional home inspector.
Your home cannot “pass” or “fail” an inspection, and your inspector will not tell you whether he or she thinks the home is worth the money you are offering. They are not there to address “value.” The inspector’s job is to make you aware of repairs that are recommended or necessary.
A seller may be willing to renegotiate a price reduction to accommodate needed repairs, or you may decide that the home will take too much work and money. A professional inspection will help you make a clear-headed decision. In addition to the overall inspection, you may wish to have separate tests conducted to check for termites, or the presence of radon gas or mold. Talk to us for information about these tests and companies in the area that perform them.
In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association such as the National Association of Home Inspectors or the American Society of Home Inspectors. We recommend finding only the pickiest, most scrutinizing, unbiased inspectors you can find. If you’d like a referral – give us a call.
Attend the Home Inspection
By being present during the home inspection, you’ll be able to clearly understand the inspection report, and know exactly which areas need attention. Plus, you can get answers to many questions, tips for maintenance, and a lot of general information that will help you when you move into your new home. Most important, you’ll see the home through the eyes of an objective third party.
Involve Your Insurance Agent as Soon as Possible
Most insurance professionals have a lot of experience in working with homeowners and can offer useful tips about home ownership, particularly regarding home safety and keeping your premiums low.
Once you’ve found a home, work with your agent to develop a homeowner’s policy that meets your individual insurance needs. Your mortgage lender will need the policy information your agent drafts for your new home by closing.
Earnest Money Should be at Least 1%, but No Less Than $1,000
When you sign an offer to purchase, the seller will expect the offer to include earnest money – that is, money that shows you are serious about wanting to buy. Usually, you will be asked to write a check for 1% of the sales price, but typically not less than $1,000. If your offer is accepted, your earnest money will be held in escrow. Once all contractual contingencies are released, the money will be deposited in a special non-interest bearing trust account. At closing it can be included as part of your down payment or returned to you. If your offer is not accepted, the check is simply returned to you. But keep in mind, if you back out after all contingencies have been removed; you will forfeit the full amount.
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