Purchasing A Home FAQ's

Real estate listings and ads seem to have a language all their own. What do all those abbreviations mean?

Abbreviations are a necessity in real estate advertising because so much information must be communicated in so little space. Some common abbreviations and their meanings:

If you run across any other abbreviations or terms you don't understand, don't be embarrassed -- after all, you don't buy a home every day. For quick help, check the glossary of real estate terms in the back of this book. Or simply contact us -- we'll be happy to "translate" for you.

When I start visiting homes, what should I be looking for the first time through?

The house you ultimately choose to call home will play a major role in your family's life. A home can be an excellent investment, of course, but more importantly, it should fit the way you really live, with spaces and features that appeal to everyone in the family.

As you look at each home, pay close attention to these important considerations:

• Is there enough room for you now, and in the near future?
• Is the home's floor plan right for your family?
• Is there enough storage space?
• Will you have to replace the appliances?
• Is the yard the size that you want?
• Are there enough bathrooms?
• How much maintenance and/or decorating will you need to do right away? Later?
• Will your present furniture work in this home?

How many bedrooms should I be considering?

Whether you are married or not, or have kids or not, spare bedrooms come in handy when family and friends come to stay. And when you're not having guests, extra rooms are useful as a library, den, or TV room.

Another good reason to choose a home with extra bedrooms: Extra space will make your home more appealing to a larger number of interested buyers when it comes time to sell.

Is an older home as good a value as a new home?

It's a matter of personal preference. Both new and older homes offer distinct advantage, depending upon your unique taste and lifestyle.

New homes generally have more space in the rooms where today's families do their living, like a family room or activity area. They're usually easier to maintain, too.

However, many homes built years ago offer more total space for the money, as well as larger yards. Taxes on some older homes may also be lower.

Some people are charmed by the elegance of an older home but shy away because they're concerned about potential maintenance costs. Consider a home warranty to get the peace of mind you deserve.

What do I need to bring along when I'm looking at homes?

Bring your own:

• Notebook and pen for note-taking
• Flashlight for seeing enclosed areas
• Tape measure for checking room sizes, clearance, etc.

Be prepared to "snoop around" a little. After all, you want to know as much as possible about the home you buy. Sellers understand that because their home is on the market, it will be looked over pretty thoroughly.

If you need to go back to a home for another look, your agent will be happy to schedule an appointment. Also, be sure to ask any questions you have about the home, even if you feel you're being nosy. You have a right to know.

What should I ask about each home that I look at?

As a rule of thumb, ask any questions you have about specific rooms, features, or functions. Pay particular attention to areas that you feel could become "problem" areas -- additions, defects, areas that have been repaired. And above all, if you don't feel your question has been answered, ask until you do understand and are satisfied.

In most cases, your real estate agent will be able to provide you with detailed information about each home you see. Or, use the following home features worksheet to note room sizes, features that need a second look, and other comments.

What should I tell the agent I'm working with about the homes I look at?

Tell the agent everything you liked and didn't like about each home you see. Don't be shy about talking about a home's shortcomings. Is the home too small for your needs? Let the agent know. Was the home perfect except for the carpeting? Let the agent know.

However, remember that the real estate agent is frequently paid by and working for the seller. The seller's agent is obligated to help secure the best price for the seller. In addition, agent's working for the seller may also report any confidences you share to the seller - including any willingness to pay a higher price should the seller not accept your initial offer(s). This is why you may want to be represented by a buyer's agent because he/she will keep your input confidential. A buyer's agent puts the interests of the buyer - not the seller - first.

How many homes should I look at before I buy?

There is no set number of homes you should look at before you decide to make an offer on one. That's why providing the agent with as many details as possible up front is so helpful. The perfect home may be waiting for you on your first visit. Even if it isn't, the house-hunting process will help you get a feeling for the homes in the community and narrow your choices to a few homes that are worth a second look.

If you're looking in more than one community, try to make the most of each house-hunting trip. Stop by the local chamber of commerce to pick up promotional literature about the community. Or ask the agent for welcome kits, maps, and information about schools, churches, and recreational facilities. Also, be sure to take along a camera and snap some pictures of all the homes you like. That will make it easier to remember and reach a decision.

If I'm moving a considerable distance, is there any way I can screen homes before I start traveling?

Yes. Today's Multiple Listing Service -- which include up to 90% or more of the homes listed in any given community -- have made it relatively easy for buyers to access detailed information on homes for sale practically anywhere in the country.

Is there any way I can protect myself against emergency repair bills in my new home?

Yes. Home warranties offer you protection against many potentially costly problems not covered by your homeowner's insurance. They've become increasingly popular in recent years, and for good reason: the coverage can save you thousands in the event of a major mechanical breakdown, at a time when your cash reserves have been depleted by your down payment and moving expenses.

There's so much to remember before I close. What do I have to do?

Your agent can help you with many of these items:

• Are all the necessary inspections complete?
• Are all the required repairs complete?
• When will you conduct your final walk-through inspection?
• Is your attorney satisfied that title to the property is clear (no one else has a claim on it)?
• Have you confirmed a date, time, and place for your closing?
• Who will conduct the closing?
• Is your insurance policy paid and ready to go into effect the day you close? You'll need a receipt for proof.
• What form of check should you use (and who should it be made out to) to pay for the closing costs?
• Has your closing agent told you the closing amount?
• Do you have receipts for the items you have already paid for, including your deposit and inspection fees?
• Bring your checkbook to cover any last minute extras that might have been overlooked.

What should I look for on my final walk-through?

In most cases, you'll be given the opportunity to inspect the home immediately prior to closing. At this time, it's important to check on any work the seller agreed to have done in response to your initial inspection. You should also carefully check the condition of walls and ceilings from which window treatments, pictures, or any other attached furnishings have been removed. If you find any problems, don't hesitate to bring them up at the closing. It's the seller's responsibility to correct them.

What will happen on closing day?

1. The lender's agent will ask for your paid home insurance policy.
2. The agent will list the adjustments. These include the money you owe the seller (the remainder of the down payment, prepaid taxes) and what the seller owes you (unpaid taxes, prepaid rent).
3. You will sign the mortgage. This gives the lender legal rights to the property if you don't make your payments.
4. You will sign the mortgage note, the promise to repay the loan in regular monthly payments.
5. You will get title from the seller in the form of a signed deed.
6. The lender's agent will collect the closing costs from you and give you a settlement statement of all the items you have paid for.
7. The deed and mortgage will be recorded in the town or county Registry of Deeds.

Is there anything I should do immediately after closing?

The first thing you'll want to do is have the locks changed. Also, put your deed and other important paperwork from the closing in a secure place, preferably a safe deposit box. Even though it's all on file with the county, it's smart to know where your copies are and have access to them at all times.

Should I move myself or use a moving company?

In almost every case, you can save yourself time and energy by using a reputable moving company to help you move.

Ask your agent, friends, and co-workers for recommendations, then get estimates from several companies. Don't choose a mover based on price alone -- consider the reputation and professionalism of the company, too.

Work closely with the moving company to coordinate your efforts and your move will be achieved with maximum efficiency.

Can an agent help with the move itself?

Yes. Most agents are more than willing to offer advice and assistance to new homeowners; all you have to do is ask.