Real Estate and Reston, VA: A Fresh Look At Buying A Home, Part II

In my last post I listed some things for buyers to consider as they begin the process of looking for a new home.  In this post, you will find that list continued. Hopefully, the items I bring up here, and in my previous post 'A Fresh Look At Buying A Home, Part I,' will help you to narrow your focus and allow you to begin a more targeted search for your new home.

1. How do you picture your weekends? Are you a career-oriented single looking for a place with a great master bedroom and close-by work out facility? Or are you part of a young couple who is moving to a new area and hopes for impromptu cookouts with the neighbors?  Is it important to have a dog park near by? Do you see yourself strolling to the neighborhood coffee shop each morning? Certain types of homes and neighborhoods lend themselves to certain lifestyles and social events. If you are hoping for certain types of activities, make sure that they find a place on your 'wish list.'
   
2. Is the neighborhood important to you or are you just looking for a great place?  I often take buyers out to look at properties during the day, but I always suggest that they come back and see a place between 7:30 and 8:30 in the morning and 5 and 6 pm. Why? This is when you will get a chance to meet your potential neighbors, find out how many cars really park in the parking lot and see if there is a 'rush hour' to get in and out of your neighborhood. Don't be afraid to strike up a conversation; most folks are happy to share the 'good, the bad, and the ugly.'  If you are looking for a place that has either a lot of children, or not many, it will give you a chance to see the bus stops. You will see how many people are out walking their dogs and if neighbors stop to talk to one another at the mailbox.  All of these things can give you a better sense of what kind of neighborhood you are considering.
   
3. What can you REALLY afford? The very first thing you should do when you decide you are ready to buy your first home is talk to a lender. There are a number of expenses, above and beyond the price of the house that you will have to pay. These include taxes, settlement costs, fees associated with your loan and more. Your lender should be able to give you a good estimate of these fees (the Good Faith Estimate)  when you sit down to apply for the loan so that there are no surprises at the settlement table.
4. What do you WANT to afford?  After my clients talk to their lender and get that an idea of what they can afford, I ask them to think about it in the context of their current living situation. If they are currently spending $1,200 a month on rent and the lender has told them that they can afford  a mortgage that results in an $1,800 a month mortgage payment, where is that extra $600 a month coming from?  Are they willing to take  less expensive vacations?  Are they willing to eat at home, rather than at restaurants?  Will they give up that Saturday afternoon trip to Costco?  The monthly costs of buying a house have to be viewed in the context of your whole life--not just your mortgage payment.
   
5. When do you need to be out? Be sure you know what your time restrictions are for getting out of your current situation. If you are in a month-to-month rental, you have flexibility. If you are in a rental with a move-out date, you need to be sure you have a back up plan in the event that the 'house of your dreams' cannot be ready at the same time.  This might be a good time to consider a  brief stay with friends or family, or to talk to your landlord and see if they have any flexibility. Many of the best purchase deals right now are Short Sales. The downside to a  Short Sale contract is that it is almost impossible to predict how long it will take to get approved by the bank, or banks, involved. This makes buying a Short Sale challenging for someone with a firm Move Out date. Having a 'back up plan,' will save you from a huge amount of stress if your settlement is delayed, or your contract falls apart. Don't wait until you have a property under contract to begin putting this plan together.This is definitely a time to be pro-active and think of all your options.
6. Do you need help to find your new home?  While you may be comforted by the help your parents or a trusted friend provide, there is no substitute for having an Accredited Buyers Representative (a Buyer's Rep or ABR) at your side, negotiating on your behalf. A Buyer's Rep will help you negotiate the best deal for your new home and help you through the sometimes stressful process of home inspections, radon testing, loan application, appraisal and settlement. Because so many properties that first time buyers are considering are foreclosures or short sales, this is really a time when you want to be able to rely on the recent experience of your ABR to guide you through the complexities of buying. Bring the parents and best friend along for moral support, but I would advise relying on a professional to help you through the process.

You have probably guessed that I am a planner by nature.  Particularly in a buying situation such as we are seeing now with Short Sales and Foreclosures, planning for different scenarios is the best way to protect yourself from the uncertainties that are inevitable. 

Buying a new home can be stressful under the best of circumstances, but with  some thought and planning you can minimize your stress and, in the end, wind up with a home that you can enjoy for many years.