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Searching for a house to purchase, some things to
When you are in the market to search for your
first or next house, there are many aspects of house searching to consider.
There are the obvious aspects that come to mind and then there may
be equally important aspects that just don't come to mind right away
concerning the search for your new home until the very last minute
or when you are otherwise not in the position to make the choices
you want without suffering some sort of cost, be it an opportunity
cost or financial cost. With this in mind, the following are aspects
of the housing market that you should keep in mind when you are
about to look for or are otherwise already actively looking for a
house to buy:
The type of market in which you are seeking to buy a new house
can make a world of difference in the amount of money you'll
have to shell out for a new house. There are basically two
types of markets: 1) a buyer's market, and 2) a seller's market.
A buyer's market is a time in which the housing market becomes
so "overloaded" with houses--inventory--that there are far too
many houses on the market than usual compared to the noticeably
fewer amount of potential buyers seeking to buy houses.
So, with this high supply (i.e., a robust amount of houses) and
low demand (i.e., a relatively small amount of buyers) ratio,
sellers are more inclined to make their houses more sellable
than others by offering more enticements, such as significantly
lower purchase prices, and are otherwise more willing to
negotiate purchase terms than they otherwise would be during a
as a buyer, it would be more favorable to buy a house in a buyer's
market and not necessarily during a seller's market, a time in which
the opposite occurs of a buyer's market: The housing market is
experiencing a significant reduction in the amount of houses
available on the market--inventory--at a time when the pool of
buyers seeking to buy has become a bit overcrowded. In such a
seller's market, with many more buyers and, thus, many more purchase
offers a seller can choose from for every house on the market, a
seller can usually afford to hold off on sealing a deal until the seller's
demands are met.
As it is to many, the location of your new house and places
relatively close to it is everything, and this may become an
important deciding factor in your house search. In this
regard, you will want to consider the travel distance between
your new house and your place of work; the travel distance
between your new house and the school you prefer your children
to attend; the travel distance between your new house and the
local hospital; and the travel distance between your new house
and other major points of interests, such as grocery stores,
libraries, and entertainment outlets like movie theatres.
You should find a new house that meets your expectation of a
reasonable commute time from such a new house to such places of
Make sure your new house encompasses the necessary amount of
rooms to meet the needs of your family and you. On this
note, also make sure that your pets will have enough space of
Consider the crime rate of your new house. Is the crime
rate in the area of your new house too high for your comfort?
You can ascertain such relevant crime information from the local
police department, local newspaper crime reporter, and even the
Federal Bureau of Investigation's annual Uniform Crime Reports.
sacrifice for bargain deals. The new house you may want to
consider buying, if you are on a tight budget, is one that has
been foreclosed or otherwise repossessed. Such houses are
usually not in tip-top condition, which is usually an inherent
condition of foreclosed and repossessed properties, though they
might be something you should consider as a prospective purchase
merely because of their corresponding discounted purchase
prices. You can find information on such properties at
local recorder offices and in local real estate advertisements.
association or not. Determine if your new house is
considered a part of a homeowners association community and, if
so, whether you would be willing to meet your obligations as a
member of the homeowners association, including all applicable
homeowners association assessments; if you cannot or are
otherwise unwilling to meet such obligations, search for a new
house that is not a part of a homeowners association.
turnaround. The new house you are considering to purchase
is one that you may also want to determine if it is fit to
ultimately be turned around into an investment property.
In this regard, check to see what zoning classification your new
house has to see if you can add additional living space to the
house in the future in an effort to rent out multiple housing
units. If you are not interested in rental investments,
for investment selling purchases, check to see how quickly
houses in the market of your new house appreciate so that you
can come gauge exactly how much you can sell your new house in a
few years from now.
The above are just some of the major aspects of
searching for a new house; once you narrow down the houses of
interest to a select few based upon the consideration of the above
aspects, among others, zero in on the nitty-gritty features of the
select-few houses from which to select the one house you will call
your new home; this may involve the retaining of a private house
inspector to inspect the new house, especially if you are not buying
a foreclosed/repossessed house and are paying full-market value;
also, it should come standard, but you should generally make sure
that your real estate purchase contract/land purchase contract
includes declarations that the title and property, itself, including
all improvements, are free of defects and other encumbrances.
Be sure to evaluate whether you should purchase title insurance as
an owner/buyer, which is usually optional relative to the virtually
standard practice of the lender buying a lender's policy; for more
information, see the
title insurance section.
Handyman Zone Team
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