The Homebuying Process: Step 2

So you've already talked with a mortgage lender and have gotten that magic number indicating how much house you can shop for.  You've looked at your own budget, considered all of your monthly expenses, and decided how much of a monthly payment you'd be comfortable with.  Be smart - don't stretch yourself too far; emergencies always happen and you want to have some wiggle room in your finances so you can make your mortgage payments on time.

The next step would be to make a list of the features you'd like in your new home.  Imagine your dream home, and jot down everything you can think of that you would love to have.  Then split the list into two columns - things you would like to have, and things you MUST have.  Add a third column of things that you absolutely do not want.
 

Making a list will help you clarify your priorities

Now walk away from the list for a while.  Go read a book or play a game of tennis or hit happy hour with some friends.  When you look at the list again, imagine you walk into a home that has most of the things you want but not everything.  Is everything on your "must have" list really a deal breaker?  Is there anything on your "do not want" list that you could live with if the house was otherwise ideal?

Don't worry about perfecting the list too much at this point; you will likely move things around as you begin to learn what features are available in your price range and in the area you want to live in.  But having thought through your wish list will enable you to eliminate properties right away and make your search more productive.

Now call me.  Together we can discuss your needs for both the property and your time frame.  Depending on financing, your family situation, whether you have to sell another property, etc., we'll set a timeline for when certain things need to happen.  One thing I always recommend to clients who aren't sure what they want is to let me set up a listing alert.  I collect basic information - which town, how many bedrooms, budget - and the client will receive emails on a daily basis of properties currently for sale that fit their criteria.  It's a great way to see what your dollar can buy in a particular neighborhood, and begin to eliminate properties that just don't fit.

If you're living out of town, or local but short on time, I am happy to preview properties before showing them.  Together we create a list of possibilities, noting questions or concerns about each property, and I take notes and more pictures of the houses and neighborhoods that I upload to the internet for your further evaluation.  This narrows the search down even further, leaving only the most appropriate houses to view.

While you're sifting through all of your choices, there are a few things to keep in mind besides your features list.  Most people will eventually decide to move again at some point, so resale value is a consideration.  Is the area you are considering appreciating?  Are there plans for development that might positively or negatively affect property values?  Are you near a busy, loud street, or maybe you back to a park or trail?  Is the school district rated well?  Is it easy to get to public transportation or major commuting arteries?  Not everything on this list may be applicable to your situation, but they will be considered by future potential buyers.  Also, think about the amount of maintenance or repairs that need to be done to the home and whether your budget and your patience will be able to live with what comes up.  If someone else has recently done renovations, try to assess the quality of the work and contact the city inspector to verify that appropriate permits have been pulled.  If they haven't, you could be asking for a lot of trouble.  Shoddy workmanship or unsafe practices can cost a lot of money to redo and could even be life-threatening.

Drive the commute during rush hour to see how long it REALLY takes

Once you've found one or two serious prospects, some further investigation is a good idea if there is time.  If there are questions about noise or traffic, visit the property at various times of the day to evaluate the effect.  Tour the neighborhood to get an idea of the character and look for pride of ownership.  Talk to a neighbor about their experiences with the HOA.  While you're doing those things, I will find you information on the property's sales and listing history, what the current competition is doing, as well as comparable properties to begin to evaluate the asking price.

Do your homework, but don't worry about catching or evaluating every little thing at this point.  Once you have an accepted offer, you will have time to thoroughly inspect the property and the structure, collect documents and ask questions of the professionals involved.  Colorado contracts offer protection to buyers should you find that the property was misrepresented or there is some issue on which the buyer and seller just cannot come to agreeable terms.  Even so, noticing apparent, important issues up front will prevent you from wasting time and money.

images:  lisaclarke, MSVG

---

I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

---