How do you know if a house is good? Location, location, location. It's an old cliche, but it still holds true. You want to move into a good neighborhood that's either on the rise or is well-established. You'll probably get a better deal if you find one that's an up-and-comer, but they're not always easy to spot. The best place to look for these diamonds in the rough is in the neighborhoods that are right on the edge of the more established neighborhoods. As the established neighborhood expands, in 5 years you'll find yourself living in a prime location.
So finding a good house involves two factors: the neighborhood and the house itself.
A good neighborhood is close to thriving economic centers and shopping areas, and has good public schools and public facilities like parks and community centers. It should also be an easy commute to major metro areas. Ideally, the area should have well-maintained homes, a high percentage of owner-occupants and a low crime rate.
Finding out this information requires research. For crime statistics, call the local police precinct. For school scores, call the local city council. You can get the rest of the information simply by driving around the desired area and seeing what's out there. Talk to people in the neighborhood and see what they think. Also talk to people outside of the neighborhood and see why they don't live there.
You will also need to find out the resale value of the neighborhood, so if you want to sell your house, you'll have an idea of how long it will take to unload it. Ask your real estate agent how long "for-sale" houses in your desired area have been on the market. If sales have been sluggish, find out if it's because the market is slow, or because the neighborhood has a problem. If there has been an increase in buyers from other areas coming in and multiple offers on the homes for sale, you know you've hit on a good neighborhood. Other signs of a good neighborhood are when residents are remodeling their homes or buying bigger homes in the same neighborhood, and when there is a small number of renters.
Even if you feel you have found the perfect neighborhood, there are still a few more things to check out. Call city hall and make sure they aren't planning any major road construction through that area. Also, drive to and from the neighborhood you're interested in, from different directions and at different times of the day to make sure you haven't only seen the "scenic route."
The House Itself
It's helpful to make a list of what you need in a house, as well as what you want. The "need" list is the one you're going to stick by, but you should naturally strive to get things on your want list, too.
Examples of needs include square footage, number of bedrooms and bathrooms for your family, storage space and yard size for kids and pets. Wants include color schemes, carpets or hardwood floors, built-in bookshelves and a great view.
Don't sacrifice your wants completely, but consider your needs first and foremost. You can add many things from your "want" list to your house after you buy it.
Present all of this information to your real estate agent. You've been working so hard educating yourself on what to look for that it's about time you put someone else to work. The agent will take your specifications and see what's in the area that matches. Then the two of you will begin arranging times to visit properties.
Finding the right house usually takes longer than you think it will. Soon all the houses will start to blur together. To avoid losing track, keep a scorecard for each one you look at. Make a list of your needs and how each house matched up to them. Then add comments to the bottom of your scorecard about what was good or bad about each house. Also, keep the flyers your agent gives you for each house. Many times, a flyer will have a picture of the house on it. Keeping a file of all this material will help you keep track of what you've seen, and will ultimately help you narrow down your decision of which house you want to make an offer on.
When you feel you are ready to make an offer on a house, ask your agent to help you find a reputable home inspector. A home inspection is part of the final closing on the house, but we're talking about a separate inspection that takes place before you sign a contract. It will cost you $200 to $500, and it's worth every penny. The home inspector will do a top-to-bottom inspection for any problems with the house that the seller either neglected to point out, or perhaps was not aware of. You will want to include in your offer that the deal is dependent on the seller either fixing or compensating for any of these problems before a sale goes through. Keep in mind that the inspection will not include cosmetic defects. Also, don't wait until you make the offer to find an inspector, because there's usually a time limit in the contract as to how soon the inspection has to take place.
