Home & Real Estate

Shopping for a new home can be exciting, and it is tempting to catch the first home you fall in love with. However, exercising a little patience can go a long way toward turning your purchase into a harbor instead of a hassle. Ahead, find out what to look for when buying a house: renovation potential, storage, and size, as well as neighborhood.

1. Renovation Potential
Don’t overestimate your own abilities.
Determine if the home you enjoy needs work. Then assess whether you’re really capable of doing this, advises Jeff Beneke, veteran house renovator and author of The Fence Bible (available on Amazon). Also, consider whether the home has an extra room if you are intending to update several components of it. “That way it’s possible to shut off one area at a time, do what you need to do so, move somebody into there, then close off a different area,” he says.

Don’t overestimate the potential.
Figure out if the renovations are worth the time and cost. “Make sure if you can not do the work, you receive quotes before you buy the house so you understand what you are getting into,” Beneke states. If the cost of the home in addition to the renovations will place the home’s value significantly above others in the neighborhood, it is likely not the best investment–or else you might need to scale back the renovations.

Think twice when your kitchen requires renovating.
Unlike most other rooms in a house, you won’t have a spare kitchen to use while yours is under construction, says Beneke, who notes that remodeling can put a massive strain on unions. If the kitchen only needs granite countertops, that’s fine. But if you are planning to proceed and handle a significant kitchen renovation whilst residing there, then you might want to reconsider. Is your family actually going to be fine with shutting it off and eating takeout for a couple of months? Can you renovate in stages so the kitchen isn’t completely out of commission?

2. Storage and size
Your house should be having an extra space for some unexpected situation
If you’re a couple with one child, you might think all you need is a two-bedroom house. However, you might decide to have another child or find you need one of those bedrooms for a home office for a distant job in the future. When possible, purchase with the expectation of growth.

Plan for where you would place furniture to find that it fits.
“When the home looks really immaculate, make certain all the furniture is there,” Rogers says. The owners might have set a desk or entertainment center in storage, which makes you discover if you proceed in the home doesn’t have as much space as you thought.

Quantify your biggest pieces of furniture, such as height, for things like entertainment armoires, then bring along a tape measure (such as this pocket-friendly one from Amazon) while house hunting so you may confirm that everything will fit. If you like the house but the armoire is overly tall, consider forgoing the house against the possibility of finding a fresh arrangement for your TV and stereo.

Count kitchen cabinets.
Today contractors are putting pantries back in houses because homeowners have discovered they really need them. Does the new kitchen match your old one in the pantry area along with a cabinet-by-cabinet count? If you had a pot rack in your old house, you will have to determine if one will work in the new home or if there is enough room for the pots and pans, china and glasses, and the platter you use on Thanksgiving.

3. The Neighborhood
Establish priorities for that which ought to be within proximity of the house.
If you are utilized to speaking with neighbors over the fence, walking together for exercise, or meeting in the neighborhood coffee shop, see if your new neighborhood will offer the same. “Make sure dream home on an acre or two do not enjoy a desert island in which you have to push to see anyone,” says Bert Sperling, founder of Sperling’s Best Places and writer of Best Places To Raise Your Family (available on Amazon).

On the flip side, if you’re a more solitary person, ensure that the house has sufficient space between you and your neighbors for your comfort level.

Is your house close to the areas that are most important for you? Scout out the nearest grocery store, gas station, school, and place of worship–not to mention learning just how far the home is from your workplace. Will it bother you to drive 15 miles to your favorite bookstore?

Study other homes in the area.
If you want your home values to go up, it is far better to buy the worst house in a fantastic neighborhood and enhance it than to opt for the very best home on the block. If the neighborhood has plenty of homes available, it might be on the decrease.

Can you see indications of a renovation? That can indicate that people are dedicated to the region, which gives a better opportunity for land values to increase. If you’ve got small kids, do you see pools or bicycles or swing places in lots of other lawns? That might mean your kids are going to have new friends nearby. Do you see cars on blocks in many driveways or yards or old appliances and other junk behind fences in nearby houses? That’s often a sign of homeowners that do not care about curb appeal, and it might be a symptom of a neighborhood that is losing value, Sperling says.

If you’re wondering whether you need a Realtor to purchase a house, the brief answer is no. You might be hesitating to work with one since you don’t want to be saddled with Realtor charges, but typically, buyers don’t pay a real estate agent’s commission — sellers do. The truth is, many anglers use a Realtor to help direct them throughout the procedure, so before deciding whether or not to work with one when you purchase a house, consider the pros and cons.

Reasons to buy a home with a Realtor’s help
Property agents (some of whom are Realtors, members of the National Association of Realtors, or NAR) are licensed professionals working on your behalf and advocate for the interests. In most cases, sellers possess a real estate agent working for them a list of seller’s agents — so you will need someone in your side, a buyer’s agent, that also has your spine in discussions and can help you realize how to create an offer on a home.

Why some buyers don’t like to work with Realtors
Even though nearly all homebuyers work with a Realtor — only 12 percent of homebuyers didn’t in 2020, the NAR accounts — buying a house without one could be a feasible solution for some, especially if you’re knowledgeable about the property.

In fact, not working with a buyer’s representative on”an intra-family transaction is rather common,” according to Pamela Linskey, lawyer and founder of Linskey Law LLC, specializing in real estate, estate planning, and probate in Massachusetts.

Most buyers contemplating not working with a broker are looking to save cash — a goal that can be marginal given how Realtor commissions are generally structured. The commission is usually about 5 percent to 6 percent of the home’s purchase price and can be divided between the listing agent and buyer’s agent. Frequently, sellers construct this fee to the purchase price of their home.

“Ordinarily, the only advantage to buying a house without a broker is saving the money it would cost to cover the agent, typically about 3% of their purchase price,” explains William P. Walzer, attorney at Davidoff Hutcher & Citron LLP in New York.

How to buy a home without a Realtor
If you’ve carefully considered the downsides and decide to move forward in the home buying process without a Realtor, here is how to make it happen and what to expect at the final.

1. Negotiate with the listing agent
As the buyer, you could have the ability to negotiate the price of the home with the listing agent since you’re rescuing the seller from having to cover your agent’s commission. Though the seller pays the commission, the buyer’s broker’s commission is often baked to the buy price — however, if there is no buyer’s broker, then the seller may be able to knock that fee off the purchase price.

Negotiating on a house purchase, of course, takes skill, but in the event, the seller lowers the purchase price to reflect the dearth of agent charges, that means a smaller mortgage and lower monthly payments for you.

2. Check the disclosure and ask questions
The final disclosure is a significant record that includes information about the terms of your mortgage and closing prices. Make certain to read this document carefully and compare everything to your initial loan quote from the lender. If you notice any discrepancies, now’s the time to ask questions. Take special note of the interest rate, amount of obligations, whether there’s a prepayment penalty, and some substantial modifications to closing prices.

It could also be wise to submit a request for closing bills to be sent on closing day. This will show that all the vendor’s outstanding debts, such as utilities, have been paid.

3. Have a professional review the paperwork
At the very least, hire a real estate lawyer early on to review the purchase agreement and closing documents. Purchasing a home is a large purchase, and the files can be complex to read through and understand. An experienced lawyer will have the ability to counsel you and have language incorporated into the purchase and sale agreement to secure your interests.

Remember that issues can come up at any time in the sale, also, therefore a real estate attorney can be a resource and ally during the process.

“Forget waiting until the closing to get a lawyer,” Linskey states.

4. Sign all of the files and receive the keys
At the closing, plan to pay one or two hours reviewing and signing two sets of multiple files. 1 set contains the agreement between you and your mortgage creditor, and another set contains the agreement between you and the seller Take your time and examine everything (and, if possible, have your lawyer present). You do not want to include your signature in a legal document you don’t understand.

Bottom line
There are a whole lot of moving parts that go into purchasing a house, and working with a Realtor can save you money and time and stave off potential headaches. If you are concerned about being able to pay for a Realtor’s commission, know the purchaser’s agent’s fees are usually paid for by the vendor, not the buyer — although it is frequently worked into the record price of the home, so the buyer is “paying” it, anyhow.

Still, most homebuyers associate using a Realtor. Those of us who don’t have a tendency to be seasoned buyers or are familiar with the house they’re seeking to buy. If you have decided to purchase a house without a Realtor, it’s best to hire a property attorney to help lead you through the complex parts of the transaction.