Straight Talk About Real Estate

We are finally at the last step of the home buying process! It has been a long road. There were probably several obstacles that you had to overcome. You may have had problems with the loan process, or the home inspection, or with coordinating the move. Problems during a transaction are normal. It is rare to experience a transaction that went perfect. There is always something unanticipated that comes up. Do not lose sleep over these problems. There are always ways to solve it.

In this last article on the buying process, I want to talk about moving into your new home. If you are purchasing a resale (not a brand new development), I can guarantee you there will be something wrong with the house. It may be something minor like a dent in the wall or stain on the carpet you did not see before. It may even be a more major issue such as a plumbing or electrical problem. Do not panic!

Remember, you are buying a used house. It is like buying a used car. Anything that goes wrong can be fixed. If a home warranty plan was purchased, be sure you call the home warranty company first. If it is covered by the plan, you will only have to pay for the service fee of about $50.

If you discover a problem within the first few days, and it looks like a pre-existing condition that was not disclosured by the seller, contact your agent and see if it is something the seller should be responsible for.

Do not assume that the seller should have the house in perfect condition for you, and anything that goes wrong is the responsibility of the seller. As I said, you are purchasing a used house. I’ve seen incidences where everything worked fine at the final walk through, but when the buyers moved in, the air-conditioning stopped working. In my own purchase, the pool filter went out within a month after we moved in. That is a normal part of homeownership.

You will experience many more such challenges (or headaches!) owning your own home. But remember, the benefits of home ownership outweighs all the problems. Don’t let the fixing and cleaning overwhelm you. Sit back and enjoy your home. Reflect on how fortunate you are to be one of the few who can actually hold a title deed to your own home.

Want to jump quickly to the other Buying posts? Here’s an index to help you out.

#1: Getting ready to buy
#2: Looking at finances
#3: Checking your credit
#4: Qualifying for a loan
#5: Determining the price to shop for
#6: Finding the location
#7: Proximity to your workplace
#8: Choosing your agent
#9: Cautions in the search
#10: Moving into your new home

As you begin your search for your house, there are three cautions:

1. Do not make any changes in your financial status or your employment status.
I’ve had clients charge new furniture on their credit card in anticipation for the move, and thus affected their loan qualification. Another buyer of mine lost his job and failed to tell me because he expected to get another job fairly quickly. Such information, even if it is a positive change such as a pay increase or promotion, need to be communicated to the lender and agent. You want to make sure the paperwork is current, and everyone who is working for you have accurate information. You do not want surprises during escrow.

2. Do not try to find the perfect house. There will be things in a home that you like, and that you will not like. Even if you built your own custom home, you will find things you don’t like after you lived there for a while. If the house meets your basic requirements and is in the location you want within your price range, do not be afraid to make an offer.

3. Do not be afraid to ask questions. As a agent who has done hundreds of transactions, I sometimes assume my clients know what I mean when I use real estate terms such as title, escrow, deposit, etc. I rather my clients ask me than be confused. If you want more information about such things as the neighborhood, the schools, the homeowner’s association, your agent may not know all the answers, but he/she should be able to direct you to the proper sources.

Now you’re ready to go! What’s the final step? How will I close out the series? Read on to find out!

Want to jump quickly to the other Buying posts? Here’s an index to help you out.

#1: Getting ready to buy
#2: Looking at finances
#3: Checking your credit
#4: Qualifying for a loan
#5: Determining the price to shop for
#6: Finding the location
#7: Proximity to your workplace
#8: Choosing your agent
#9: Cautions in the search
#10: Moving into your new home