Buying a New Home? Check these Guidelines
Posted: Wednesday, October 15th, 2008 | Posted by: Sample Article | Views: 20620
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House Buying & Selling Guidelines
Thinking about buying a New Home? This compiled checklist is to help you become a savvy buyer and find your ideal home.
1. Create your Wish List
Before you embark on your search for the perfect house, it is important that you make a realistic "shopping list" in an attempt to narrow your choices of properties. Hunting for a home can be a time consuming process, especially if you have not determined in advance the parameters of your search. Many homebuyers make the mistake of misinterpreting a WANT as a NEED. As a result, they often dismiss homes that perfectly fit their needs in search for one that has their wants. This is not to say that you cannot have what you desire in your home-just that you must be able to differentiate between what you truly need and what you would like to have. Your budget must be the determining factor here, not a "wish list."
2. Verify Your Financial Health
Before you go shopping and apply for a home loan, it's a smart idea to obtain a copy of your credit and review the information. If there are errors that need to be addressed, it's easier to address them before you have found a house.
4. Working With The Experts
When you're ready to buy, take a little help from real estate experts to guide you with research, analysis, negotiation strategies, and real estate therapy that will help you get the home of your dreams for the best price and terms. Buying a home is a complicated process and hence it is necessary to to have assistance from relaible, experienced, knowledgeable service providers.
5. Start Your Search Online/Offline
There are many Real Esate portals that have come up in the recent past, which offer multiple property listings in terms of price, location etc. Also keep an eye on Builders websites on upcoming projects and look out for advertisements in newspapers. Of course, an agent will also prove helpful as he/she may have a databse of sellable properties.
6. Become an Informed Buyer
Try to familiarize yourself with the various types of housing available: Single family, townhouse, and flats. Learn about the neighborhood. The value of a home is greatly affected by the surrounding homes. Always think resale. The desirability and resale value of your home depends in large part on location. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc.
7. Comparative Market Analysis (CMA)
A CMA is an analysis which compares homes in the neighborhood. It shows you the recent sale prices of comparable homes in the neighborhood, along with asking prices of other homes in the area currently on the market. With this valuable information, you'll be able to make an informed decision on the price you want to offer.
8. Disclosure Package
If a disclosure package is available on the property you are considering, try to get it before you make an offer. Legally, sellers must disclose all known material defects of a property. Disclosure packages should include any inspection reports the sellers have, as well as, mandatory disclosure documents which should comprehensively discuss all aspects of the property. This information could help you to decide if you want to offer on the property and, if so, at what price. This information does not necessarily take the place of your own inspections.
9. Make an Offer
When you're ready to buy, go through the details of the purchase agreement. Determine your offer price, timeframes for inspections, loan approval and closing.
10. Conduct Your Due Diligence
Once your offer is accepted, start with at least two inspections - a pest inspection and a contractor's inspection. A wise investment, these inspections are a good way to protect yourself. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage. The inspector will let you know if you need further expertise in the investigation of the property. A pest inspector will tell you if there is active pest infestation and areas of damage due to dry rot. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.
11. Final Checklist
Before you sign any document related to your payments, be sure the property you are considering is free of all encumbrances. You will receive a preliminary title report which will ensure there are no liens, debts, undisclosed owners, or other clouds on the title.
12. Closing & Payments
After you have found a home, ratified the contract, inspected the house and negotiated any repairs, the mortgage is in place and loan documents have been prepared, the focus turns to closing.

Payments begins when the seller has accepted your offer and you have placed a deposit on the house. Payment ends when your purchase is recorded by the concerned government authorities and you become the legal owner of the house.
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