Real Estate Information Archive

• - Ask your RealtorⓇ for a list of qualified inspectors in the area.  Be sure to check reviews, and ask other recent home buyers for recommendations. 

• - Call at least three different inspectors for price, experience, and whether your state requires a license and bonding or not, ask about these anyway.  A top certification they could have is one by ASHI (American Society of Home Inspectors). 

• - Once you choose an inspector, choose a date for the inspection when you can accompany them.  If they have a problem with you being there, find another inspector. 

• - Ask the seller if you can go in the house on your own before the official inspection to get an idea of the condition of the property for your own satisfaction.  Popular Mechanics offers a thorough list of things to look for in your new prospective home. 

• - While you’re in the house, look for cosmetic things like paint and patching that could be covering bigger issues. 

• - The inspector will have a process of their own, complete with checklist, but make one for yourself so you can have a record of your own for issues they show you as you walk through the house. 

• - Don’t be afraid to ask questions during the inspection--a reputable inspector welcomes questions, plus, you’re paying them for their knowledge.  Getting answers before you get their final report will help you understand it better. 

• - If you’re not quite sure of how to change the hot water heater temperature, how to work the circuit breaker box, or where the water shut-off is, the inspector can help you become more familiar and knowledgeable about the house.  Use your smartphone to take photos and video as they give you a how-to lesson, so you’ll have it in case you need it. 

• Roofing While a new roof looks great, it is considered a maintenance issue, so unless your roof needs replacing, or you have damaged shingles, this job rarely adds value.  On the other hand, depending on where you live, a metal roof can add some value to your home, lower your homeowner’s insurance premiums, and may save on the electric bill. 

• Landscaping Keeping your yard trim and weed-free doesn’t decrease or increase your home’s value, and some landscaping certainly helps if you’re trying to sell. Adding a small fish pond with waterfall, however, isn’t necessarily going to add to add value.   

• Electric/Plumbing In older homes, an upgrade here is something that’s necessary, and even if you used top-of-the-line products and the most expensive plumbers and electricians in the area, it won’t add value. 

• Swimming Pool Putting in a pool is simply a personal choice--you have it done because you want to enjoy some refreshment and relaxation on a hot day.  Rarely does an added pool or spa put money in your pocket if you sell. 

• High-End Upgrades In order for upgrades to add resale value, they must be consistent.  Don’t add imported tile to one bathroom, and then leave vinyl and Formica in the half bath.  

• HVAC A new A/C unit or heating system is another maintenance item, and though someone looking for a home may find some relief in knowing that there’s a brand-new unit attached to the home, they’re not going to pay more for it because it’s new. 

• Carpet If you’re thinking about installing new carpet to prep your house for the market, talk to your RealtorⓇ.  Going to the expense of new carpeting may be less desirable to house-hunters in your area.  If you want to make that money back, then consider another type of flooring for your house. 

• - Be absolute certain your credit has been rebuilt by paying all your bills on time and in full. Check your credit score, and keep an eye on it.  Aiming for a minimum score of 580 improves your chances of qualifying for a home loan. 

• - Get every penny you can into savings! 

• - Consider taking a course in financial management.  Not only does this help you become more financially stable, it shows a lender that you’re serious about it. 

• - If your last home went into foreclosure, there are waiting periods for applying for a mortgage: three years for FHA loans, seven years for Fannie Mae/Freddie Mac loans, two years for Veterans Affairs loans, three years for USDA loans, and other lenders have different waiting periods. 

• - Buying a home after bankruptcy depends on what type of bankruptcy was filed, so there are different factors when it comes to each situation. 

• - If you have experienced a short sale with your last home, depending on the lender, the waiting period to apply for a mortgage is two-seven years. 

• - Some lenders may ask you to write a letter explaining the circumstances for the foreclosure or short sale, as well as what you learned during the process.   

• - Extenuating circumstances that caused a foreclosure or bankruptcy, such as a major illness or job loss can make a difference in how long you must wait to apply for a mortgage, depending on the lender.  Be prepared with any paperwork that shows your loss of income or increase of debt. 

• - We can’t say it enough:  mind your credit!  Unless you have the funds to pay for a house in cash, then you need to keep an eye on your credit. Get a report from all three credit reporting agencies from the Annual Credit Report website. 

• - Know what you can afford.  Make a budget and stick to it, recording everything on paper or using budgeting software.  Once you see where your money is going, it’s easier to cut some unnecessary things to put towards your down payment. 

• - That said, start saving now, not only for your down payment, but any other expenses associated with a home purchase:  inspections, closing costs, and taxes are a few to expect. 

• - Once you are close to having all of your down payment, start shopping for the best mortgages, and get pre-approved.  Being pre-qualified is great, but it’s not much help if you’re not approved for the loan. 

• - Be ready to compromise on certain home aspects:  square footage, having to make minor repairs, or even living on a busy street.  If the price is right, the house fits your needs and wants, then put the it on your possibilities list. 

• - Just because you’re approved for a certain home loan amount doesn’t mean you have to max that budget.  You need as much leeway in your finances for emergencies and unexpected costs. 

• - Prepare yourself for possible let-downs:  some perfect-for-you homes are also perfect for others who are on the search for a new house.  If there are several offers on a house, you may have to walk away from it and keep hunting. 

• - Don’t go through it alone!  Find a RealtorⓇ that you trust and like.  These real estate professionals are your ultimate guide through the home-buying process, and will make it so much easier for you.   

• - Begin budgeting now, if you do not already.  Homeownership has more expenses involved than renting, and you need to be able to manage your money properly. 

• - Check your credit score and correct any mistakes, or do what it takes to bring your numbers up. 

• - Start saving towards your down payment.  

• - Be realistic.  You know about how much you can afford, so don’t start your initial search in the luxury homes sections. 

• - Once your financial things are in good working order, shop around for a loan, and talk with the lender about your pre-approval amount.  Knowing how much you can afford will help keep you in check when it comes to the house searching. 

• - Don’t balk at browsing other homes besides houses--there are affordable townhomes and condominiums that could be perfect for you as your first home purchase. 

• - Think about your community options--do you want to live in a managed community (HOA), a rural area, new construction in a planned community, or an older suburban neighborhood?  Each can affect how much you pay in HOA fees, taxes, or maintenance costs. 

• - If you have renter’s insurance, and you should, you’ll note that a homeowner’s policy costs more, because it covers much more than just your belongings.  Speak with your insurance agent about a quote so you can budget accordingly. 

• - On the chance that you decide to relocate, you can choose to rent your property and become a landlord yourself.  You will have money from the rent to pay towards your mortgage payment, or, if the house is paid for, begin building a nest egg. 

• - Purchasing a newer house than what you’re renting can save money in the end, because of less up-front maintenance, as well as being more energy efficient, thus having lower utility bills. 

• - If you’re reading this, odds are you are a Facebook user, and your personal data may have been used by an outside data analysis firm.  Gain some insight into your privacy settings, and how to change them and your personal data information from trustedreviews.com. 

• - Using Facebook to log into websites like Pinterest, GoodReads, and other social media sites is convenient for you, but it also makes that website privy to your connections’ information as well.  Set up one email account for use on social media, and don’t use it for anything that requires signing up with personal information.  

• - Almost every website now has an info window that pops up that informs you that they use cookies to store your activity.  Some cookies can embed trackers that gather info as you surf the internet.  Take a few seconds every time you browse by clearing them from your browser settings. Digital Trends shows you how to delete them from the most popular internet browsers, including your mobile browsers. 

• - Whenever you’re using free WIFI in public places, their internet service providers can see what you’re doing while using their connection.  A Virtual Private Network (VPN) can protect your personal information from being seen by encrypting it.  While there are free VPNs available, some will cost you.  PCMag lists their favorites according to your usage--from general browsers to world travelers. 

• - Once you’ve finished using a website where you have an account, log out.  If you’re out and about, and the data you’ve stored on whatever device you’re using is sensitive, opt out of the free WIFI and use your data instead.   

• - Did you know you could browse privately?  Click on your browser’s menu and choose “Private Window” or, in the case of Google Chrome, “Incognito Mode.”  While using this feature, nothing you do will be stored in the browser’s history. 

• - Some browsers don’t share any of your personal information, or at least, share a limited amount.  Mozilla Firefox, Opera and Tor are free, and are always doing their best to keep surfing the internet safe for their users.  Mobile browser apps are available as well. 

• Any friends that have recently bought or sold their home can get you started on a reference list.  Ask them what they liked most/least, and what they would do differently. 

• Look to the internet for initial research.  Go down your list and search for each Realtor’s listings, blogs, and testimonials. Record contact information of Realtors you’re most interested in. 

• Call each Realtor and set up an appointment to meet for a Q&A session. 

• Before your first meeting, familiarize yourself with real estate professionals terms, as each title has a different job. 

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• Have this list of questions to ask on hand at every meeting: 

• - How long have you been in real estate? 

• - Are you in the real estate business full-time or part-time? 

• - Do have more buying or selling experience? 

• - How many homes have you sold in the past twelve months? 

• - Do you specialize in any certain neighborhoods or locations? 

• - How many clients are you working with now? 

• - What’s the best mode of communication for you? 

• - Do you utilize the internet and social media to list your homes for sale? 

• - What makes you stand out in our local market? 

• - What should I know as a seller/buyer? 

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• - A good Realtor welcomes these questions and will be honest with you when they answer them. 

• - Don’t be surprised if the real estate pro interviews you as well! They need to know about you as much as you need to know about them. 

• - Meeting with potential Realtors help you see their personalities, and having good chemistry is essential to your Realtor-client relationship.  You will be spending a lot of time with each other. 

• - References with contact information are essential and can help you seal the deal with the right real estate professional for you and your needs. 

• - If the Realtor is new in the field, don’t count inexperience against them.  They should be eager to add your sale to their portfolio and want to offer you a great experience. 

 - Before you make that first visit to the model home, find a real estate agent to accompany you, and keep them involved in every aspect.  If you wait until after you’ve talked to the builder’s agent, you lose the benefit of having buyer’s representation. 

 - Hiring your own real estate professional is wise, because you’ll have someone with your interests at heart. 

 - Shop around for the best loan in advance.  If the builder’s lender has incentives and discounts, consider this if it will benefit you in the end. 

 - Ask for info about how many lots and homes have been sold. 

 - You need to know about each home site’s size, and how close each house is to each other. 

 - What is the investors ratio allowed in the community? This will tell you the rental the number of homes that are possibly rentals.  

 - What is the projected completion date for the new construction site? 

 - If the completion date isn’t met after we have signed a contract, is there a deposit refund or a cancellation clause? 

 - How long is the home’s warranty, and what does it cover? 

 - Is a garage or deck standard or an extra cost? 

 - Is smart technology wiring included in the basic home package, and is wiring to all bedrooms an extra expense? 

 - How much input do I have on paint colors, flooring, kitchen cabinets and bathroom finishes? 

 - What appliances are included? 

 - Is there a builder’s upgrade credit? 

 - Find out the what the builder’s policy is if they run short of materials. Most builders have the right to substitute, and you don’t want to be surprised to see mosaic tile where you thought subway tile would be in your finished home. 

 - Talk to residents who are already living in the community, and ask them about any concerns they have, and what they love about their new home. 

 - Don’t skip getting a home inspection just because it’s new construction. Humans make mistakes, and it’s better to pay extra for a home inspection to find out everything is fine than deal with something that will cost a lot in the long run. Be sure your purchase contract allows you to hire an inspector outside the building company. 

 - If the model home is one of the last homes left in the neighborhood, ask about buying it! You may not get every finish just as you’d like, but you can paint a room or change the flooring if the cost of the house with all the bells and whistles is comparable to one that’s just been finished. 

Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins. 

Photo credit: realestate.usnews.com