House hunting tips

Surveying prospective neighborhoods

Type of Neighborhood

• Is it primarily single family residences or condominiums?
• Is it primarily owner-occupied residences or rentals?
• Is it a commercial or industrial area?
• Are there lots of families or are most residents adults?
• Is it well maintained?
• Check with the local police precinct to get data on the local crime rate.

Home Values and Property Taxes

• Are home values rising or falling?
• What is the average current home sale price?
• What are the lowest and highest sale prices in the last year?
• Have property taxes risen in the past few years?

Real estate sections of major newspapers usually publish these statistics. Real estate offices often have this information available as well.

Schools

• How good are the school district's scores on standardized tests? You can obtain these from the administrative offices of the school district.
• Are there both public and private schools in the district?
• How close are the nearest elementary, middle, and high schools?

Mass Transportation

• How close is the bus, train, subway and trolley stop?
• Is there a local car/van pool available?
• If you travel frequently, how close is the airport?

Commute

• How long would it take you to get to work?
• How far is the freeway?
• Would you be going with or against traffic?

It's a good idea to drive the route you would take to work during peak commute hours as well as on the weekend.

Services

• Is there a grocery store, shopping center, pharmacy, post office, and bank nearby?
• Are there libraries, parks, sports facilities, religious institutions, and restaurants?
• How close are the police and fire departments?

Community Development

• What developments and improvements are planned for the community? City and county planning departments have this information.

Friends and Relatives

• How long would it take people with whom you socialize to reach the area?
• What proportion of the population is in your age group?
• Does the neighborhood have places where you could meet new friends?
As you explore various neighborhoods, talk with as many residents as you can. They have valuable information and opinions. Get a feel for the community and ask yourself if you would be happy there.

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The fixer-upper option

If you are experienced in home repair, you may want to consider a fixer-upper, a house that requires extensive work to make it an attractive residence.

Pros

• Lower price
• Location in a neighborhood you couldn't otherwise afford
• Possibility of selling the improved home at a profit

Cons

• The cost of repairs, often hard to estimate, can exceed the savings.
• If you can't live in the home while work is proceeding, you incur the additional expense of another residence.
• If you are unable to finish the job, you are stuck with an undesirable home.

The key factor with a fixer-upper is the cost of improvements. Remember, the repair cost is in addition to all your home buying costs.You should:

• Estimate repairs generously.
• Be realistic about how much of your time the job will require.
• Use professionals to help you assess what's needed and counter-balance wishful thinking.
• Don't attempt repairs you have never done.
• Get professional help, especially with plumbing, roofing and electrical work

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Searching your area

Even if you have an agent, you should look on your own. You can get a feel for what's out there and what you like. You can then give the agent a more precise idea of what you want. You may also find homes that your agent misses.

The resources below will yield many leads. Screen each one before you take the time to visit. Call the seller or the seller's agent and ask them to send or fax you a description of the property. If you are using an agent, he or she can also obtain a detailed profile.

Word of Mouth

Often, the best deals are found through family, friends, and co-workers. Check the physical or electronic bulletin board at work, if there is one.

Classified Ads

Read these regularly to maximize your chances of finding a suitable home. If you have selected a particular neighborhood, use the classifieds in a paper from that community to save time. If you are considering several locales, a regional paper with comprehensive listings is better.

Real Estate Advertisers

You can find these free publications at supermarkets or newsstands. They list homes for sale by various brokers in that area.

Open Houses

Look for "Open House" signs when you're driving around neighborhoods on weekends. Passers-by are welcome to walk in and view homes for sale. The atmosphere is casual, without the tension of a formal appointment and tour. You can also meet other buyers and share information with them.

Foreclosures

Properties which banks have taken back because of loan default can be great bargains. Banks must spend money to maintain these houses. As a result, they're eager to sell. It may also be easier for you to qualify for a loan to buy a foreclosure or REO ("real estate owned" home). Contact banks in your area and ask to speak to the officer in charge of REOs.

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