For Home Buyers
Whether your dream home is new construction or an existing home, you will want to know what to look for as you begin your home search. Think of features that are important to you and create a checklist to serve as your roadmap for buying a home.
Review the list below and find out how your Lisa Bennett will help you conduct a home search, negotiate, and close on a new home.
In Greenwich, Ct. Real Estate and Stamford, Ct. Real Estate and Lower Fairfield County I will help you with the process of buying a home while representing your best interests throughout the purchase process.
Use the home buyer checklist below to prevent errors and to stay on track:
It’s better to buy a home than to rent one in most cases. But not in every case. Comparing buying to renting is actually a fairly complicated endeavor. However, there are a few easy guidelines you can use to aid you in your decision. Buying a home is usually more beneficial than renting except when:- You intend to move within a few years
- Your rent is very low
- You don't expect to live more than another 15 year
Although it’s often said that by owning a home, you’re not “throwing your money away on rent.” This may be true, but when you buy a home you will still throw money away on things that don't build any equity. These include:
* Closing costs
* Interest on your mortgage
* Property taxes
* Property Insurance
* Private Mortgage Insurance (if your down payment is less than 20%)
* Maintenance
In fact, these “throwaway” expenses are more than you’d likely spend on rent. If the only financial advantage to buying a home were building equity, it wouldn’t be enough to offset these expenses, and it would be better to rent. The reason that buying is usually better than renting is not because you avoid throwing money away, it's because:
- You lock in your monthly payment for 15 or 30 years. (If you kept renting you’d pay more each year.)
- Your house gets more valuable over time.
You can stop making payments when the loan is paid off. This is a big advantage, but it doesn't get your costs down to zero. You will still pay for taxes, insurance, and maintenance even after your loan is paid off. On a home worth $180,000 that could be around $525/mo. Sure, that's better than the $1000/mo. you could be spending on rent, but it's not free.
You can deduct mortgage interest on your income taxes.
For most people this advantage is pretty small, but you can certainly calculate it in your own analysis if you want to be complete.
You many find that you need to add some steps, based on your special situation, to create a customized home buying checklist for yourself. However, this should serve as a helpful guide as you start on the road to purchasing your dream home.
It’s better to buy a home than to rent one in most cases. But not in every case. Comparing buying to renting is actually a fairly complicated endeavor. However, there are a few easy guidelines you can use to aid you in your decision. Buying a home is usually more beneficial than renting except when:
Although it’s often said that by owning a home, you’re not “throwing your money away on rent.” This may be true, but when you buy a home you will still throw money away on things that don't build any equity. These include:
You can stop making payments when the loan is paid off. This is a big advantage, but it doesn't get your costs down to zero. You will still pay for taxes, insurance, and maintenance even after your loan is paid off. On a home worth $180,000 that could be around $525/mo. Sure, that's better than the $1000/mo. you could be spending on rent, but it's not free. You can deduct mortgage interest on your income taxes. For most people this advantage is pretty small, but you can certainly calculate it in your own analysis if you want to be complete. |
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A buyer needs to select a geographic area that is suitable for their
individual lifestyle. Today, lifestyles are the key determinant to making an
informed home buying decision.
The buyer should determine what is a reasonable commute to work and what the
means of transportation will be…via interstate or mass transit. Schools will be
of great interest to the buyer with a family.
If seeking a pre-retirement or retirement home, the buyer should determine the
proximity of family, friends, and existing home.
A determination should be made as to where consumer goods and medical services
are made available.
Affordability is a key factor in any home buying decision. Knowing if this is a
move-up in home value, or a lateral or downward move, will move the decision
making process right along.
Once these lifestyle issues can be resolved, the search can be narrowed to
several qualifying locations.
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Once location has been selected and a William Raveis Brokerage Sales Associate has shown the buyer several new home sites, the next step is to research the builders. A reputable homebuilder will belong to a local homebuilders’ association. Also, it is advisable to check with the local building inspector for an opinion on quality.
Choosing a builder is just as important as choosing the style of the home. The builder not only has the responsibility for the largest investment a buyer may ever make, but his or her skill and preferences can have a direct impact on future comfort and happiness.
Not all new home communities are the same. Each one carries the distinctive mark of the builder, whether that happens to be innovative floor plans, distinctive craftsmanship, bold architectural statements, or just great value. Each builder also has a different personal style and way of communicating with his or her clients.
The buyer should consider references of past clients. Drive through one of the builder’s previous subdivisions on a Saturday morning and try to get a random sample of opinions. Ask questions like: are you happy with your home? People are usually willing to share their joy or their sorrow.
Now that the right location and the right builder have been selected, it is appropriate to go to contract. Most builders require anywhere from 10% to 25% down in order to start a home. If the home is up and standing, the builder will accept 10%. If a custom home were to be created specifically for the purchaser, the builder would then expect a 25% deposit at contract.
Selections increase in proportion to the price tag of the home. Correspondingly, the time it takes to build the home increases with the size and the number of custom features selected.
Realistically, a home delivery date range, if started from scratch with an improved road to the home site, can take anywhere from 120 days to 18 months. Remember, the builder is anxious to keep the home delivery schedule on time. The builder does not get paid until closing.
Before the closing, a home inspection tour will be conducted. During the tour the builder will point out all of the features and provide warranty information on each. Learning about maintenance and upkeep responsibilities is very important. Most new homes come with a one-year warranty on workmanship and materials. However, such warranties do not cover problems that develop because of failure to perform required maintenance. Many builders provide a booklet explaining common upkeep responsibilities and how to perform them.
Manufacturers provide warranties that are covered by the manufacturer, not the builder. The builder is responsible for any building code violations that occurred. However, in the unlikely event that there has been a violation (because builder research was conducted), the responsibility becomes the builder’s.
During the inspection, the purchaser should look for scratches in the counter tops and flooring. Walls should not have gouges and the moldings and trim should be square. The buyer should take pictures before the title is taken, particularly if a problem is discovered. The builder will prefer, under all circumstances, to conduct any and all repairs prior to the buyer moving in because it is easier for them to work on repairs in an empty house.
There are over 30,000 parts in a new home. Therefore, the propensity to find a small imperfection is great. However, many builders conduct their own thorough inspection before the buyer sees it. Most builders employ a cleaning service to make sure the home is clean prior to the closing.
One year later, it’s not uncommon to find settlement cracks in the drywall or nail pops. These are easily remedied and are the responsibility of the builder. A call to the builder is recommended prior to the termination of the one-year warranty.
