Nolo's Essential Guide to Buying Your First Home (7 page)

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Authors: Ilona Bray,Alayna Schroeder,Marcia Stewart

Tags: #Law, #Business & Economics, #House buying, #Property, #Real Estate

BOOK: Nolo's Essential Guide to Buying Your First Home
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Maybe you’re worried that you’ll have to move as soon as you meet Mr. or Ms. Right. While that admittedly is possible, it’s also possible that in the meantime, the increased value of your place will help, not hinder, your happily-ever-after. If the value of your home increases and you pay down the mortgage, the two of you will have equity you can use to buy a place together. Besides—a house that’s perfect for one may accommodate two just fine.
 
Combine our homes.
Hannah says, “I was a young professional and
very
single when I bought a condo. Two years later, I met Chad, who also owned a small home. Before I knew it, we were married and living in the house, renting out the condo. Then we had kids, and the house was just too small. We sold my place and Chad’s, using the equity to buy a house big enough to accommodate our kids. It’s nice to have a place that we chose together, with our family in mind.”
“But … It’s Too Much Responsibility!”
 
For some, the idea of owning a home just seems like too much to handle. Admittedly, renting is much simpler than owning. You write a rent check, and you’re covered for the month. And in many rental arrangements, you can leave with just a month’s notice—perfect for those with wanderlust.
Telling yourself that renting doesn’t involve responsibility isn’t really true, though. After all, what happens if you don’t pay the rent? You get evicted—and then where do you go? Back to Mom and Dad’s? Most people would rather do whatever it takes to make that monthly payment happen.
So if you’ve already lived away from home, you’re familiar with what’s needed to make monthly payments and handle monthly finances. Of course, when you buy you’ll have other responsibilities, like taking care of your yard or doing repairs, but you’re in charge of prioritizing what happens when. If you decide you don’t want to repair the creaky stairwell until you’ve redone your kitchen cabinets, that’s up to you.
“But … I’m Still Scared!”
 
Buying a home may seem overwhelming, even if you’ve always wanted to do it. The process is unfamiliar, there’s a lot of money at stake, and you may fear getting swept up into buying a place you don’t even like or that will drop in value. But fear shouldn’t stop you from realizing your homebuying dreams. To help calm the butterflies, take constructive steps such as these:
•
Know your strengths and weaknesses going in.
Then find ways to address them, for example with self-education or by hiring professionals.
•
Learn what you can expect from professionals.
Understand what real estate agents, mortgage brokers, home inspectors, and other professionals do, and put them to work for you, saving time and money.
•
Observe your local real estate market.
We’ll show you how to research the trends in your area, in order to reassure yourself that you’re not buying an asset that will immediately drop in value, and has long-term appreciation potential.
•
Understand the process.
Read up on all steps of the homebuying process now, so that you won’t be confused—or need to do any late-night remedial study—when the process kicks into high gear.
•
Get organized.
Use all the worksheets and checklists in the Homebuyer’s Toolkit on this book’s CD-ROM to stay on top of all your key tasks, such as choosing a real estate agent or inspector or pulling together financial papers for the lender.
 
This book will help you accomplish all those goals. It will tell you where you are at every step, so that you can breathe, get your bearings, and proceed with confidence. Get the facts, and you’ll be ready.
What’s Next?
 
Once you’ve decided you’re ready to buy, it’s time to figure out what’s important to you. In the next chapter, we’ll discuss how to examine and settle on your priorities regarding types of houses and neighborhoods.
 
CHAPTER 2
 
 
What Do You Want? Figuring Out Your Homebuying Needs
 
 
Meet Your Adviser
 
Paul Grucza, a community association expert and educator, author, and TV show host based in Coppell, Texas.
 
What he does
With 29-plus years of real estate-related experience, Paul is an active faculty member for (and former President of) the Community Associations Institute (CAI, at
www.caionline.org
), which provides nationwide guidance and resources to the volunteer homeowners who govern community associations. Paul received CAIʹs 1999-2000 ʺEducator of the Yearʺ award. Heʹs also a Regional Vice President and Corporate Trainer for RTI/Community Management Associates, Inc. in Plano, Texas (
www.cmamanagement.com
), which provides professional management services for a variety of planned communities.
 
First house
ʺIt was an absolutely rundown but gorgeous Mission-style bungalow built around 1922, in one of the first incorporated subdivisions outside Buffalo, New York. The house was the builderʹs model for that subdivision, so it had all the features, including inlaid floors, woodwork, and leaded glass. I spent the next 11 or so years lovingly restoring it—regrouting the bathroom tile, refinishing the woodwork, rebronzing the heat duct covers, replacing the modernized light fixtures through a restoration company, and much more. It turned out to be the most beautiful home Iʹve ever owned.ʺ
 
Fantasy house
ʺThat would be a 5,300-square-foot combination Frank Lloyd Wright and modernistic house on a cliff or hill overlooking Newport Beach, California. I would fill it with 1950s or early 1960s period furniture. And it would be a technologically smart house—with voice-command lights, A/C, and garage door, all cutting-edge. Why 5,300 square feet? I had a house in Florida that size once, and it was comfortable—anything bigger feels overwhelmingly large.ʺ
 
Likes best about his work
ʺMy daily interaction with a wide variety of people. They include homeowners, developers, service professionals, managers, and board members. This brings me more joy than anything—and after nearly 30 years, Iʹd better enjoy my work!ʺ
 
Top tip for first-time homebuyers
ʺRegardless of the type of property youʹre looking for—whether a house, a condo, a cabin, a doublewide, or whatever—leave your emotions at home. Look at the property and its practical application in your life, and at what it will cost to turn it into your home.ʺ
 
 
Y
ou know you’re ready to buy but are probably wondering, “Where do I start?” There’s a lot to think about, like what kind of home or neighborhood you want, and what features you can’t
possibly
live without. This chapter will help you:
• identify neighborhood characteristics that fit your personality and that maximize house-resale value
• understand how your lifestyle and plans should play into your choice of house
• learn the benefits and drawbacks of different types of properties (single-family houses, condominiums, or co-ops, plus new or old places), and finally
• create a Dream List, describing and organizing your priorities, to use when house shopping.
 
Later chapters will teach you how to do the looking, how to figure out whether you can afford what you want, and what to do once you’ve found a place. For now, focus on organizing your thoughts and priorities.
Test Your Knowledge of Famous Neighborhoods
 
Match these famous neighborhoods to their descriptions:
 
 
Answers: 1-d, 2-e, 3-a, 4-c, 5-b.
 
Know Your Ideal Neighborhood: Why Location Matters
 
If you’re a lifetime renter, you’ve probably always thought about location in the short term, knowing you could move at the end of your lease. Buying is different: You’re committing yourself to a location for at least a few years. And you’ll probably feel a sense of investment in your community that you didn’t before. So get serious about identifying your location preferences, then make sure these preferences won’t mean buying a house with low resale prospects.
Neighborhood Features for Daily Living
 
Not everyone wants the same features in a neighborhood, and you’re the one who’s got to live there. Before letting anyone else tell you what the best neighborhoods are, consider your preferences and priorities regarding:
•
Character and community.
For some, the uniformity of well-planned developments is pleasing; others enjoy the variety of older, one-of-a-kind homes. Visualize your ideal neighborhood, whether it features trees and parks or restaurants and bars.
•
Safety.
While most everyone prefers less crime, safety often comes with a tradeoff. For example, a rural neighborhood might be safe, but a city’s resources and nightlife will be very far away.
•
Resources and accessibility.
Think where the important places and resources in your life are, like your workplace, child’s school or day care, grocery stores, health care providers, public transportation or major roadways, cultural amenities, and more. How much time are you willing to spend traveling to those places?
•
Schools.
If you’re planning on sending children to public schools, the quality of nearby schools will be important.
•
Zoning and other restrictions on owners.
If you want the freedom to remodel your home, you’ll have to be in an area that allows that. Or, if you appreciate community uniformity, you’ll like living somewhere that limits the changes owners can make to their houses or property.
 

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