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HOME BUYERS
Important Information For Anyone Contemplating
the purchase of Residential Real Property
This information is provided to help your property buying experience
anywhere. It is for use whether or not you are working with a real estate
professional and designed to save you time, money, and stress. Finding a
good home for your family is no easy job. It sure helps to be able to
rely upon the expertise of qualified unbiased professionals.
1. Examine your motivation to buy.
2. Do as much groundwork and investigation of the property as possible
yourself. Understand home values.
3. Trust your own opinions and feelings about the buying process, the
property, and the people you are working with.
4. Seek counsel from qualified real estate professionals (lawyers, realtors,
real estate appraisers) and inspectors or engineers (particularly if you see
anything out of the ordinary); evaluate advice carefully. Take any opinion with
a grain of salt; everyone has his or her own agenda. Be especially wary
of anyone who has something to gain from the transaction or who was recommended
by someone with something to gain. Remember the real estate broker is
typically hired and paid by the seller. They only get paid if the transaction
closes. Lawyers and appraisers recommended by the broker, seller or sellers
attorney may not always act in your best interest. It is always preferential to
hire lawyers, appraisers and inspectors/engineers who have no ties to the seller
or broker. When in doubt of real market value consult an independent fee
appraiser. An appraisal fee is a small price to pay for the piece of mind it
provides. A highly seasoned state licensed
real estate appraiser is always your best bet.
5. Explore the possibility of seller financing; it could possibly save you a
bundle. Shop for rates.
6. Think of the long term, short term, big and little "picture."
7. Visualize failure for worst-case-scenario exploration, then create your
success.
8. Talk to the neighbors, take your time, work with people around whom you're
comfortable.
9. Have fun.
10. Expect the unexpected.
11. Consider (your) resources, population growth, local, regional, and global
trends.
12. Be prepared to take risks.
13. Remember: you are only in control of yourself. There are many
conditions and circumstances in the buying process completely out of your
control; accept these and sleep better.
14. Create and maintain goodwill.
15. Ask lots of questions.
16. Choose your service providers carefully.
17. Find all the boundaries of your property, crawl around under the house,
move stuff away from the walls, notice details; open every door, window,
cupboard, attic, cabinet and look inside carefully. Turn on every switch, check
every electrical outlet. It is a good idea to use a comprehensive checklist. If
you see anything unusual, It would probably be a good idea to engage the
services of a qualified home inspector or engineer.
18. Specify in writing exactly what personal property is included with your
purchase and make sure that it's there and in the same condition as it was when
you agreed to purchase, before you close your transaction.
19. Encourage the seller or an agent to purchase a home warranty for you; it
will save everybody involved in the sale much worry.
20. Examine all documents very carefully and be sure that language cannot be
interpreted to your disadvantage. When in doubt, hire a competent local unbiased
lawyer who specializes in real estate.
21. Do what you agree to do; act according to the terms of your contract.
22. Stay on the ball; remember your goals.
23. Be prepared to walk away from any transaction and move on to the next
(and possibly better) opportunity.
23. Avoid hostility. There is absolutely no reason for you or anyone to
accept rudeness or abuse. You want to do business in a positive environment;
negative and hostile clients are often litigious (meaning they will sue you if
they can) and will bring you more grief than anyone deserves.
24. Ask for references.
25. Work to obtain and bind insurance coverage on your prospective purchase
as soon as possible.
26. Be patient - and firm.
27. Celebrate your successes!
28. When you buy a property that has tenants that need to move out before you
move in, make sure that your contract calls for the tenants' possession of the
property to be terminated before the seller gets paid and your transaction
closes.
Home Buyer Inspection Checklist
There are two times that it is critical for a prudent home buyer to perform a
thorough walk-through inspection. Prior to signing the contract of sale and
again, just prior to the settlement date to review the property's condition. A
systematic review of the home's components prior to contract, will allow you to
negotiate the sale with a better understanding of the condition and any existing
problems. It also in your best interest to re-inspect prior to settlement to
ensure that everything is in the same condition that it was at the time you
agreed to buy the property. If any problems or damage is discovered, it is imperative
that you negotiate an adjustment of the price prior to the closing.
General
Any major changes to the property?
Agreed upon modifications or repairs completed?
Receipts/warranties/guarantees provided by repair contractors?
Pest control clearance provided?
Roofing
Indications of roof leakage?
Gutters and downspouts secure?
Signs of roof surface, flashings, vent or chimney damage?
Exterior
Evidence of cracks, paint peeling or other visible defects?
Trip hazards, cracking in the walkways, driveway or steps?
Plants/vegetation growing on the exterior of the home?
Stairway, deck, porch and other railings secure?
Cracks or indications of retaining wall failure?
Signs of inadequate surface drainage?
Openings into the building at trim, flashings, chimneys, etc.?
Signs of soil movement in areas around perimeter of the home?
Basement
Are all accessible areas dry?
Are there any indications of current or prior water damage?
If there is a sump pump, is it operational?
Indications of foundation cracking or movement?
Musty odors or signs of mold or mildew?
Interior
Stains, cracks or damage to interior walls, ceilings or floors
Cracked or broken windows?
Windows and window latches operate properly?
Doors and door latches operate properly?
Stains or leaks at kitchen, bathroom or laundry sinks?
Interior staircases have safe, secure handrails?
Smoke alarms in hallways, on each floor, in each bedroom?
Kitchen and Bathrooms
Are all appliances functional?
Cabinets, countertops, sinks or floors damaged?
Water Pressure is ok at sinks, shower and tub spout?
Any sign of water leaks under sinks?
Are all ceramic tile floors and wainscoting intact and well grouted?
Garage
Garage door functional?
Fire-rated doors provided at all interior entrances?
Automatic door opener reverse properly?
Fire-rated surfaces at house walls, attic and sub floor areas?
Indications of dampness or mildew?
Electrical
All light fixtures operational?
All electrical outlets functional?
All smoke detectors provided and functional?
Doorbell operational?
GFCI outlets in kitchen, bathrooms, exterior and garage?
GFCI devices functional?
Any visible dangling or exposed wiring?
Extension, lamp cord, or zip cord used as permanent wiring?
Plumbing
Adequate water flow at fixtures and drains?
Faucet or drain pipe leaks?
Adequate water pressure?
Ample hot water provided?
Clothes washer and dryer functional?
Water heater adequately strapped?
Water heater has proper pressure/temperature relief?
Heating/Cooling
System functional?
Serviced recently?
Is there adequate heat/cooling distribution to each room?
Are there large differences in temperature between different rooms?
Fireplace
Safety check on older fireplaces and chimneys?
Dampers operational?
Fire boxes need repair?
Spark arrestor and rain cap installed?
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