1. Ride the Neighborhood in the Early Evening: By doing this
you will see the people who live in the area and how they live.
You will see the condition of the cars, and if any conditions
exist (loitering, loud music, etc...) which you may find objectionable.
Do this more than once, and be sure to include Friday and Saturday
nights.
2. Get a Home Inspection: Many home purchasers bypass this step
because it will cost them a couple hundred dollars. However, a
couple hundred dollars up front will let you know exactly what
you are buying and reveal any problems you might not have noticed
on your walkthrough. Real Estate Appraisers are not Home Inspectors.
Appraisers make only a casual inspection of the property and are
not trained to identify any problems other than the obvious. Do
not rely on relatives who are contractors. If they are wrong,
they probably won't have Errors and Omissions Insurance for you
to file against. Get a professional Home Inspector.
3. Visit the Local Police Department: Police Departments know
the crime in an area better than anyone. Many will even print
you a report of the crime history of a neighborhood. Once you
buy a house, you are stuck with the neighborhood wether you like
it or not. While you are at the Police Department, if you have
kids, ask for a crime report on the school your child will be
attending.
4. Check the Sexual
Offender Register: Do you want to live next do to a child
molester or rapist? Few of us do. The local Sheriff's Department
will have a list of all sexual offenders living in the area.
5. Check with the Local Road Department: Do you want to move
into a house and later discover there are plans to run a freeway
through your living room the next year, or there are changes planned
that will turn your nice quiet cul-de-sac into a thoroughfare?
6. Check with the Local Zoning Board: The woods next door may
be beautiful, but they may not appear so beautiful when you find
out the land is zoned for a strip club, saw mill, convenience
store, or apartments. Most cities and counties keep a wall map
you can look at and tell in a few minutes if there are any allowed
land uses you would find objectionable.
7. Obtain a Utility Cost History for the House: Most utility
companies will print out a history of the utility costs for the
property. High utility costs can be the result of an underground
water leak, a malfunctioning furnace or air conditioner unit,
or lack of proper insulation, among many other causes. None of
these are cheap to fix.
8. Talk to the Neighbors Before You Sign the Contract: Often,
neighbors will know more about the house than anyone besides the
previous owner. They will also know about the neighborhood. Tell
them you are interested in purchasing the house, and find out
what they know. This also gives you a chance to determine if you
will like your neighbors and their lifestyles.
9. Research the Former Uses of the Land and the Adjoining Land:
Was there an old gas station down the road at one time? Was there
a factory nearby years ago? Was there a town dump around the corner
back in the 1930's? All of this is important. Soil and water contamination
from a property a mile away can affect your health and the resale
value of your property. The Environmental Protection Agency publishes
a list of hazardous sites. You may be surprised at how many are
located in your area.
10. Add to the contract that the Seller will furnish to you for
your review all plans, specifications, surveys, warranties, appraisals,
or other information he has in his possession regarding the property
within a specified number of days of signing the contract. Additionally,
the contract should state that, upon purchasing the house, these
documents become your property. You may find this information
very valuable.
11. Count the Vacant Houses: A large number of vacant houses
in a neighborhood may indicate that something is happening in
the neighborhood that is undesirable. There is always some reason
for vacancies. Often, it is just the normal market functioning
as it should. But, when vacancies are excessive, it could be that
the local economy has turned down, the foreclosure rate is high,
or something more sinister is happening like gang problems in
the neighborhood. If you find a lot of vacancies you can often
use this information to negotiate a better price on the house
you are purchasing.
12. Count the For Rent and For Sale Signs: Do this for the same
reason you count the vacancies. Additionally, a high number of
rentals in a neighborhood indicate that the neighborhood is less
stable. Remember, the residents of a neighborhood makes the neighborhood.
Most renters are great people (most people are renters), but because
of the high turnover in rentals, the odds of you having a bad
neighbor during your term of ownership are increased significantly
over what it would be with homeowners as neighbors.
There are all kinds of hidden problems you may not find about until
it is too late, unless, of course, you do your homework. The key is
information. You can not have too much. Question anyone who might
be familiar with the area or the property. Real estate agents often
know very little about the house or the neighborhood. Sellers will
usually keep their mouths shut and reveal no more than what they legally
are required to reveal. It is up to you to do your homework.
Buying a Home
A
Dozen Things Home Buyers Should Do... But Most Don't