First House Hunting

[Greenday]

In a year, my wife is moving down here once she graduates law school. The other day I was curious what the housing market was like and decided to give it a google. Now that I've brought it up with my wife, it's become a serious thing. My area of New Jersey isn't the most expensive either so I'm finding plenty of 2-4 bedroom, 2+ baths for under $200k. I feel like that's cheap as hell but I'm not looking for anything gigantic. We just want a place with at least two bedrooms and two full baths in case we have guests. A fenced in yard would be nice so we can get dogs and just let them roam the backyard as they please.

Any suggestions on what I should look out for, who I should talk to, etc.? I'm looking at pictures like I did for apartments and like I do for hotels. Not just what they show but what they don't show (Because if they won't advertise certain parts of the house/yard, there's probably a good reason).

I'm already paying $979 a month in rent so if we can get together a down payment, the mortgage will probably be less than my rent payments, plus then we'll actually own the place. So I'm just looking for some general guidance. My mom just moved into her new house last weekend so I'm sure she'll have tips but I'm always open to suggestions.

[mathnerd]

Research changes in building codes in the area. Older houses were built to different standards. This could make things difficult and/or expensive to fix if things go wrong. Take, for example, my upstairs bathroom. There's a leak in the shower but getting to it to fix it is a major deal as we either have to cut through a ceiling that has asbestos popcorn texture, cut through an exterior wall or rip out the entire tub. Another example from my house is the wiring. The only grounded (three prong) outlets in the house are on the kitchen and bathrooms, and those are only because they've been upgraded since the house was built. A simple repair could turn into thousands of dollars if we have to upgrade electrical ot plumbing to meet current code, or have to deal with asbestos or lead clean up (there could be lead paint under the current coat).

Check out the house under several weather conditions if possible. Are there problems with rain or snow? Are windows placed so that certain rooms are unusable at sunrise/sunset?

Don't skimp on a home inspection. I almost bought a house that would have been a gigantic money pit as the previous owner had spliced in wires to make it look like the electrical had been upgraded, but once you got back a few inches it was the old wiring. My inspector caught it and I withdrew my offer for cause.

Once you are serious about a place talk to your potential neighbors. Are there issues with the neighborhood? What's the crime rate? Is there a trouble maker on the block?

Try to imagine living there in the same way you currently live. Don't imagine throwing dinner parties if that's not your style. Take a hard look at the kitchens and bathrooms. Imagine using those spaces. Is anything awkward? The thing I hate most about my house is there's no good place in the kitchen to keep a trash can. It's a little thing, but you're going to be in this house for a long time. Those little things can add up.

I'm sure there's more, but that's what I came up with off the top of my head.

[Aragarthiel]

Don't skimp on a home inspection.

This. Hubs and I have only ever rented, and we wish we'd taken this advice beforehand.

Another thing to ask neighbors about is a possible pest problem. Not necessarily roaches or rodents, but for example, we live in an area that is absolutely infested with bugs. It's just the way the neighborhood is. We have a never-ending struggle with ants and crickets as a result. The neighbors will be able to tell you what the neighborhood's like pest-wise.

There are lots of little things that you should keep an eye out for as well- odd floor vent placements (one of ours is under the kitchen cabinets), bathroom ventilation, making sure light switches aren't behind doors, the like. I particularly stress the bathroom ventilation, as older houses (which may be exempt from some housing laws) may not have any ventilation at all, not even a window, and that can ruin the flooring just outside the bathroom along with causing other problems.

I also second checking the outlets. Not just what kinds there are but their count and placement. We have six(!!!) outlets that are only accessible by the fridge's plug (four are behind the fridge right now, one is just to the right of it and the other to the left, all very high up on the wall), and only three in our rather large living room.

One other thing- if you're going to have a refrigerator with an ice maker/water dispenser, make sure there's either a water line going to the fridge or room to put one in. Otherwise, it's quite a waste.

[April]

Get a GOOD realtor. Ask around. You want one who is going to be real, who can point out potential problems, give you advice. Not one who will gloss over the bad things in the hopes of making a sale. I had a good realtor, but at the same time, he could have given me more advice, when I was making an offer. All he said was don't make it insulting. But I found out later that the owners were desperate to sell, and I probably could have offered them another 10 grand less and asked that they fix the fence and gutters and they would have taken it. He never pointed that out or even gave advice on that.

Look at the neighborhood. If there are a lot of rentals in that area, you want to be careful. Not all renters take care of the house and property like they would if it was theirs. You don't want a run down house bringing down your property values later. Also, rentals tend to bring in the less savory population, who don't want to deal drugs from a home that they own (Dealing with this now)

Check EVERYTHING. Look at baseboards. Are they flush, or is there a large gap between the floor and the bottom? Cracks in walls are not a good sign. Ditto to ceilings. Check the hot water heater and furnace. How old are they? check water pressure, etc. Ask questions

After we purchased our home, we found out that Comcast has a 6 foot breezeway through our yard to get to whatever part is hidden in the corner behind our shed. Which means they can open our back gate at ANYTIME to go back there. They said if my dog was outside, they would call the cops to come get it. If I had realized this, I would have thought differently about the house, because it really is a giant pain in the ass. And I would think that legally, it should have been disclosed to me before I bought the house.

Make a list of what you HAVE to have. Then realize that you are almost never going to get everything on the list. Decide what is MOST important to you. Like top one or two things. If you get more on your list consider it a bonus.

[Seshat]

Check the laws regarding breezeways (or easements). The water company has an easement along the back of our house, but unless the sewer (runs along there) is actually currently dangerous, they have to give us a reasonable amount of notice before accessing it.
However, we wouldn't want to put anything permanent along there: they have a right to tear it up so they can access the sewer.

Hm.

Look at a LOT of places within your price range. Even places that don't interest you. The more you see, the more you'll have an idea of what is a reasonable price/condition/etc.

Think about resale value. In our case, the building itself has zero resale value: the area is "gentrifying". IE, developers buy the land, tear the one-family dwelling down, put multiple townhouses on it, sell the townhouses.

Our block is in a quiet part of the neighbourhood, close to a railway station (public transit), close to a K-12 school, a private school a bit further away, within walking distance of a corner store. There's a shopping centre on the other side of the railway line, also a medium-large medical complex that has specialists, and numerous other facilities for a neighbourhood.

In other words, pretty much everything you'd want that's quiet is on our side of the railway line, and the rest is on the other side and quick to get to by car. Also feasible to walk to, or to travel to by disability scooter or wheelchair.


For resale, you want a block of land which has that sort of desirability. Don't aim for perfection, but do keep an eye on it.

[April]

Ah easement was the term I was looking for but couldn't remember!

[Buzzard]

When I was in the housing market, I was working as a pizza delivery driver, and had also done newspaper delivery in the area, so I had a good feel for neighborhoods at all hours of the day/night.
Now for your search, it might be good to grab a book/portable-computer-thing and camp out a while near prospect neighborhoods to get a feel for the area. After all, you're likely to be spending years with these people and their guests/friends/visitors (both wanted and not)

[Heksubah]

The mention of easements made me decide to pipe up. If you are buying then I highly, highly recommend title insurance. It's the field that I am in. Basically they company will research the past chain of title, look for errors and require they be fixed, check for outstanding judgments that need to be settled, find any issues that may impair your right to clean title in owning that land. They will list things like easements, look for potential encroachments (other houses, fences, etc) on the land, and such.

Also, when figuring out how much you can afford for a mortgage I do recommend checking what the property tax is like in that area. Tax information is public record, so if you see a house you like you can call the city or township collector in your area and find out an idea of what it has been. I do a lot of work in New Jersey (though usually with foreclosures and such) and your state has some of the highest property taxes I've seen and is paid quarterly (whereas most states are annually). Since that can amount to a lot (I've seen it on average between 4 and 10 thousand dollars a year, usually about 1500-3000 a quarter) it is definitely a new expense you'll want to remember to keep in mind.

[Greenday]

Also, when figuring out how much you can afford for a mortgage I do recommend checking what the property tax is like in that area. Tax information is public record, so if you see a house you like you can call the city or township collector in your area and find out an idea of what it has been. I do a lot of work in New Jersey (though usually with foreclosures and such) and your state has some of the highest property taxes I've seen and is paid quarterly (whereas most states are annually). Since that can amount to a lot (I've seen it on average between 4 and 10 thousand dollars a year, usually about 1500-3000 a quarter) it is definitely a new expense you'll want to remember to keep in mind.

New Jersey property taxes are stupid high. Much higher than the rest of the country.

Really, my wife and I don't have too many huge requirements. Just 2+ bedrooms and at least 2 full baths, plus a fenced in yard. Everything else we can kind of give in on.

There's been quite a few foreclosures/short sales in my area so now is definitely the time to buy and take advantage of the market. I also found out this morning that a co-worker's wife is a realtor who has been working this area for decades. I'm going to get together with her and see what we can come up with.

[Seshat]

The mention of property tax reminded me of something else. In your ongoing budget, add two things. 'Home improvements' and 'Home maintenance'.


You WILL find things you need (not want, need) to improve. Especially if you buy an older home, or one which has been neglected (probably due to poverty or ignorance).
Your home will also gradually deteriorate, and you'll need to fix the bits that do, as they do.

If you can't afford property tax (and other fixed costs), PLUS improvement, PLUS maintenance ... you can't afford the house.

[BearLeeBadenaugh]

Title insurance is a good idea. It might be part of the TI terms, but you might also consider having the property surveyed once you are making an offer. Knowing where your lot lines are can be important.

A customer of mine had to pay to dig up and replant an entire privacy screen(something like 4 dozen large evergreens) because they assumed their neighbor's fence was on the lot line. It wasn't. The neighbor's fence had been built with an eight foot setback because the previous owners of customer's home were horrible pests to the horses.

[protege]

Don't skimp on a home inspection. I almost bought a house that would have been a gigantic money pit as the previous owner had spliced in wires to make it look like the electrical had been upgraded, but once you got back a few inches it was the old wiring. My inspector caught it and I withdrew my offer for cause.

^This. A home inspection isn't cheap (mine ran about $400 in 2006), but it can save you thousands of dollars in repairs or additional costs. For example, the guys that did my inspection went up into the attic, checked all the light sockets, the wiring, took the furnace covers off and poked around, looked for termites, checked the plumbing, the structural integrity, etc. all of which could have easily come back to bite me.

How? Well, when they had the furnace apart, they found that one of the heat exchangers was cracked. That would have let dangerous carbon monoxide fumes into the house. Because that was an item that would have let me walk, the seller had to replace the furnace at their cost. There were outlets that were wired wrong--either they were wired backwards (against code), or not at all! Since I planned on upgrading them to 3-prong outlets anyway, that wasn't a problem.

The thing you have to watch, is just how qualified is your inspector? Some states--like Pennsylvania--have no certification program. Any schmuck with a pickup and some tools could easily claim to be a "home inspector." They could basically take your cash and screw you over. They could easily miss dangerous or costly things.

Before you hire an inspector, do some asking around. It could be the difference between spending a few hundred now...or a few thousand later.

[Seshat]

In my state (Victoria, Australia), the professional organisation for architects (I forget their name) has a home inspection service. The price is 'ouchie', yes, but like protege said, you don't want to buy a home without getting it professionally inspected.

[catcul]

Do not skimp on home inspections. I went to a business get together one time, and a home inspector found light switches in the shower. I was shocked.

Home Inspection Nightmares
The most appalling finds from our nation's intrepid home inspectors

You never know what they'll find.

[wolfie]

I went to a business get together one time, and a home inspector found light switches in the shower. I was shocked.

I hope you mean it as a figure of speech, and not literally.