Posted in Home Buying

6 Ways to Totally Snoop the House You Want to Buy

1. Soak in the Bathroom

Homebuyers tend to peer into the bathroom for as long as they’d want a stranger to examine theirs: not long at all. But this isn’t the time to be quick. Josh Myler, a REALTOR® with The Agency in Los Angeles, encourages buyers to take a long, close perusal of the water closet.

Flush the toilet to find any backups in the system, and turn on the faucets to check the water pressure. Besides being annoying during showers, low pressure can indicate problems with the plumbing.

“Water pressure can really cause headaches down the line if you don’t dig in before you make an offer,” says Myler.

But always, always check with your agent first. In some markets, or with some sellers, it’s considered impolite to actually use the toilet.

Or, if the owners already have moved, the water may be turned off. And that could be, awkward.

2. Dig Around in the Closets

OK, don’t actually go through the owner’s stuff, but take a close look to assess how much storage space there is, and decide if it’ll meet your needs.

“People don’t like to open closets because they think it’s rude, but if you’re buying the house, it’s one of the biggest investments,” says Myler. “You want to make sure there’s enough room for everything you need.”

Before you step foot in a single house, take inventory of your current storage space, and know how much you’d like your next home to have.

3. Poke Around the Attic and Basement

Don’t just stick your head inside and call it good. Give the basement and attic a thorough investigation. If there are belongings piled against the wall, request they be moved before a second viewing.

“I get very nervous when I see a packed basement and stuff against the wall,” says Kyle Alfriend, lead agent of The Alfriend Group in Dublin, Ohio.

That’s because hidden walls and ceilings can conceal water damage, including peeling or discolored paint, rotting wooden accents, or a white, chalky substance on the wall, which indicates water intrusion.

As for the attic, a quick glance should tell you what you need to know. Are there rat droppings? Molding wood? Or is it generally clean, even if dusty? BYO flashlight for an enlightened examination.

4. Meet the Neighbors

Sorry, introverts. There’s no better way to get a read on the neighborhood than by directly asking the actual neighbors. Pop by their home and strike up a chat.

It’s a twofer not only might you get valuable information about the area — from the noisy bar on the street behind you — but paying attention to their attitude speaks volumes about your potential relationship with your maybe-neighbors. Do they seem excited to meet you? Or are they standoffish?

“It’s not what they answer, but how they answer that will be very illuminating,” says Myler.

5. Be an Amateur Investigator

Anything seems fishy? Take your suspicions to city hall. If there are additions, pull the permits or get help from your buyer’s agent. You certainly don’t want to be responsible for tearing out that beautiful porch because the previous owners didn’t comply with the law.

Also, check the certificate of occupancy and any easements — especially if you’re hoping to make any major changes. Both are public record. An easement simply gives someone the right to use property they don’t own. Often that other someone is your local government that needs it for public services, such as water.

Myler remembers a friend who purchased a home with the goal of building a pool, only to find out an easement for the sewer line cut directly through the middle of the yard.

Another common use is a shared driveway, such as when one homeowner has to pass through another homeowner’s property to reach their home.

6. Ask Questions

If your sleuthing finds something concerning, don’t panic.

“Many times, there’s stuff that, at first glance, is really scary,” says Alfriend. “Often people will write off a house without digging into it, but there’s usually a perfectly logical, understandable reason, and it’s not a problem.”

Say you find a gaping hole in the drywall. It might be a huge red flag — or they might have rambunctious kids they absolutely plan to clean up after.

“Boys can wrestle and put a foot through the thing, and it’s 30 minutes before a showing,” Alfriend says. There’s not much the sellers can do at that point.

With any problem, your first step is simple: Ask.

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Posted in Home Buying

8 Rules To Negotiate An Offer

Here’s the dream: Your offer is perfect, you don’t need to negotiate, and you can spend the next few weeks addressing more pressing home-ownership questions, like “Why is it called wainscoting?” and “Do I want a new coat in blush or emerald green?”

And it could happen. Many sellers accept the best offer they receive, and for a variety of reasons.But sellers are also known to reject offers for a variety of reasons. Or make counteroffers. This is especially likely if you bid low, or when you’re up against multiple competing offers.

If you do receive a counteroffer, it’s up to you to decide whether you want to accept the new contract, negotiate the terms, or walk away. In cases such as these, look to your agent. He or she is your spirit guide. If you decide you want to negotiate — that is, make a counteroffer to the seller’s counteroffer — your agent will use their negotiating skills to help get you the best deal. This is what agents do every day.

But you’re not just going to sit there. If you understand what negotiating tactics your agent may deploy — they depend on the local market and your position — you can back them up. And cheer them on. Here are eight rules every buyer should know before they — and their agent — start negotiating:

#1 Act Fast — Like, Now

When you receive a counteroffer, you should respond quickly — ideally within 24 hours. The longer you wait, the more space you leave for another buyer to swoop in and nab the property. Also? If a seller senses hesitation, they may decide to withdraw their counteroffer before you even have a chance to respond.

Posted in Home Buying

How Much Income You Need To Buy A Home In Your State

It’s no mystery that cost of living varies drastically depending on where you live, so a new study by GOBankingRates set out to find out what minimum salary you would need to make in order to buy a median-priced home in each of the 50 states, and Washington, D.C.

States in the Midwest came out on top as most affordable, requiring the smallest salaries in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy with California, Washington, D.C., and Hawaii edging out all others with the highest salaries required.

Below is a map with the full results of the study:

us income
How Much Do You Need to Make to Buy a Home in Your State? GoBankingRates gave this advice to anyone considering a home purchase,

“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”

As we recently reported, research from Zillow shows that historically, Americans had spent 21% of their income on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of income needed today is only 15.7%!

Bottom Line
If you are considering buying a home, whether it’s your first time or your fifth time, let’s get together to evaluate your ability to do so in today’s market!