If you plan to buy a house this year, you must be determined because it is a tight market. You will be up against other buyers who are just as determined as you are or even more so. You will all be competing for available homes for sale that are 43 percent fewer than the previous year. Listed houses are now sold within 17 days, whereas they were usually sold within 21 days in 2020. In 2019, before the pandemic, they typically lasted for 38 days on the market.
Home prices are high, and analysts predict that they will continue to increase at a slower rate. In June this year, the median price of existing homes was $363,300, which is 23.4 percent higher than in June 2020. The CoreLogic forecast is for a 3.2 percent increase in June 2022.
Mortgage rates are still within historically low levels, with the fixed rate for a 30-year mortgage averaging three percent in the second quarter of 2021. The prediction is for this to rise to 3.3 percent by the end of the year. Look around for the best mortgage rate among lenders. Include closing costs when comparing offers. If you have everything figured out and are qualified for the mortgage you need, this is a good time to pin down a great rate.
House Hunting
Before you go hunting for houses, you must be clear about what you want. It makes the process faster if you can give a real estate agent a list of your bottom line and your optional wish list.
First is location, whether you have a specific area in mind, perhaps near family or work. If not, list down the other basic requirements you have for a location, such as weather, nearby shopping, recreational areas, and access to public transportation. If you have children, you will need to consider schools.
Next, determine the minimum size of the house you want and how many bedrooms you need. If you need more than one bathroom, note this down. Also, indicate if you need a yard and a garage and for how many vehicles.
With these basics in hand, you can now talk to a real estate agent. If you prefer to search on your own, you can use the internet.
Checking Out Houses
Schedule an in-person visit to each property once you find options within your budget that meet your basic requirements. Even if online tours of the houses are available, use these only as previews.
As you approach the house, scope out the neighborhood to see if there is anything that you will not be comfortable with. From the outside, see if the general look of the house appeals to you. Scrutinize it from the roof, including the gutter, to the sidings and windows. Check for signs of disrepair.
Inside, focus first on the kitchen and the bathrooms. It is expensive to remodel these parts of a house, so you must choose a house that will not need remodeling. You must like the kitchen and the bathrooms as they are. Check the faucets and even turn on the shower. Everything must be working properly.
In the kitchen, check the appliances. They must not be outdated. If the property is in an area with hard water, check the water softener system. Check inside kitchen cabinets. All cabinet doors and drawers must pull out and close smoothly.
Check the bedrooms and closets. Open and close windows throughout the house to see if they are working. Look out the windows to see if there is any unsightly view you would not want to live with.
Check if the front and yards fit your requirements. This depends on whether you want a place for your children or pets to play around in or if you plan on later setting up outdoor features like a patio, a pool, or a jacuzzi.
Professional House Inspection
Do not stop with your personal assessment of the property. Once you have zeroed in on the one that you want, hire professionals to check everything from the house’s structural integrity to the safety of its gas, electrical, and plumbing systems, as well as all appliances. Also, hire a professional to check for any toxic substances in the house.
Some buyers will try to elbow you out by offering to buy the house without an inspection. If this happens, do not be tempted to give up the option to inspect, as well. This is non-negotiable because otherwise, you can be setting yourself up for a costly retrofit that can far exceed your budget. If you have to give up the house, so be it. Go and find another one that will not put you at risk. Out there is a house that is really meant for you.
Meta title: Homebuyers: Check These First
meta desc: Before purchasing a home, a potential buyer needs to have a list of things that must be checked and tested to prevent having buyer’s regret.
