Setting Roots

An important part of the home buying process is having an inspection done. Typically, you will have 7-10 business days to have an inspection done once your offer has been accepted. There are several important things you should know about the home inspection.

1. You are entitled to choose your own home inspector. The Real Estate agent may suggest one, but you are NOT obligated to use the one suggested. Choose someone you trust.
2. The seller may have already had an inspection done, but you still have the right to get your own inspection done as well. Do not rely on the inspector that works for the seller, always seek a second opinion.
3. An inspection is NOT an appraisal. The inspector should not tell you what he thinks the home is worth.
4. A good inspector is there just to give you the facts, to find faults, concerns and failures to meet code. He may tell you what needs to be done to correct a deficiency, but a good home inspector should not offer to fix it for you or recommend people to do the work. His job is simply to give you the facts, not refer you to people to correct the deficiencies.

With all that in mind, I would suggest that you accompany the inspector during his inspection. Again, you have the right to be there, and most home inspectors won’t mind having you there or answering your questions. Remember, you get what you pay for, so don’t necessarily rely on the cheapest home inspector. Also, one reason to accompany the home inspector is to trust byt verify. A friend of mine paid $450 for a home inspector to come inspect a prospective purchase. The guy walked through all the rooms, flipped on lights and turned on faucets and said everything was good. Naturally, my friend refused to pay. You want a home inspector to be curious, to dig deep. You WANT the inspector to find faults, so you don’t find them when it is too late… Make sure the inspector tests every electrical outlet, inspects the attic and the roof. If the home you are inspecting includes a pool, be sure that the inspector you choose inspects pools and pool equipment as well.

Finally, remember to take the report with a “grain of salt“. The inspector will find problems with the home. Likely he will find problems that you did not notice… That’s okay. Not all issues are (or should be) deal breakers. You may be willing to over look something minor like a cracked base-board or a leaky faucet. But some thing more serious like improper electrical wiring, or termites should give you pause. If it is correctable, you may ask the seller to have it fixed before you close on the house, or you may decide to call off the deal altogether. Make sure, that when you decide you want to bid on house that you have not “fallen in love with it” to the point that you are willing to over look major defects, shoddy craftsmanship or other problems, because once you buy the home, those problems become YOUR problems.

Well, after a lot of searching, online and in person I believe I have found the home of my dreams. The house I have found is so much better than what I was expecting, that it is hard to believe… I will refrain from posting any photos or specific details at the moment, because the deal is not complete, and I don’t want to jinx anything, or risk violating some part of the contract in some way.

The home is about 1,750 square feet, which is huge for me, it is in a beautiful neighborhood and has a 2 car garage. In addition, the house also has an in-ground, heated swimming pool. What’s even better? It’s an enclosed pool. Wow! The house was built in 1995, which really isn’t old by anyone’s standards. Although I have not yet had the official inspection done, I have to say, after having been to the home twice, and thouroughly looking aroung, it certainly appears to be in stellar shape. I have read the seller’s inspections, and there does not seem to be any major problems. The only things noted are that it is still the original roof, and the inspectors seem to think there is only 2-3 years of life left in the roof, and there is a minor crack in the front steps. Neither of these are deal breakers.

The house itself has an interesting story… It was appraised at the end of last year for about $210,000. The original owners were selling it  because the husband got relocated by his job. Apparently a major realty company gave them a “relocation package”. The company put the house on the market at $203,000, but it did not sell. So they dropped the price to $200,000. Still no joy. The realty company then bought the home from the owners, and put it on the market at $199,900. But still it did not sell. They dropped the price to $189,900, and this is where I came in. I offered them $185,000. But I settled on $186,000 and they pay half my closing costs.

The negotiation process was nerve-racking to say the least. My agent called the seller and told them my initial offer, then she called me back with their counter offer, and I call them back with my counter-counter offer, and so on and so forth until and agreement was reached. The entire time, I am crunching numbers, and doing all this mathematical juggling to try to make the numbers work within my budget, and also to make an offer that the seller would accept. It was a very long, frustrating process that really had me worried for a bit. I found out the closing costs were going to be a little higher than I originally anticipated. I had done all my calculations and planning based on 3% closing costs. Well it turns out the closing costs will be 4%, which doesn’t sound huge, but it’s very nearly two thousand dollars, and I am already pretty strapped for cash as it is. It is scary to be so close to my dream, with my dream house, and to see it all almost slip away over a sum of money as small as $2000.

Luckily for me the seller accepted my final offer, I will not need any additional funding from my bank, and I was able to secure funds for my closing costs. So in the end it seems everything is once again back on track, but all-in-all, it was a pretty scary day for me, with a lot of ups and downs. I am looking forward to getting all of this done with, and finally being able to take possession of what I hope to be, my new home.

When I started dealing with my agent, I told her my minimum requirements… I am looking for a minimum of three bedrooms, 2 bathrooms, preferably with a 2 car garage and ideally with a pool. Oh yeah, and I want all of this in the inter-coastal region of Jacksonville, and for under $200,000. In another market, she likely would have told me to take a hike. Luckily for me, this is the ultimate buyer’s market.

She queried her database, and the search revealed about 93 potential candidates. Of those, I reduced the list down to about 30 I was interested in. I split these houses into three categories, (1) was houses I am absolutely interested in seeing, (2) was houses I would like to see if none of the category (1) houses are what I had hoped, and (3) was my “just curious” category. The “just curious” category was for houses that had one or two particular things that caught my eye, that I needed to see in person to be able to adequately judge.

I’ve been given lots and lots of advice about home buying. Some of it has been useful, some not so much… Opinions vary widely on the subject of how long to seek your home. One person told me that I should look for a minimum of three months, until I find absolutely what I am looking for. Still, others told me that I will know the house I want when I see it, and I should jump on it immediately. I think both of these are equaly valid ideas, and I think the correct method depends on the buyer. What I am looking for in a home is relatively simple. Many things, like interior paint, mean nothing to me. I will likely do a lot of repainting regardless. I am also not detered if a house has some minor defects that I can easily repair myself.

I do not need a huge house, and I also am not too picky about the floor plan, split bedrooms, eat-in kitchen or dining room, I am flexible. For me, the feel of the house is more important than anything else. I want to be able to look at each room and quickly imagine a use for it. I need a kitchen with enough room to cook, but it does not have to be elaborate, and the master bathroom should be comfortable and have a large tub. Ideally, I would like a separate tub and shower, but again, I am flexible.

That being said, I see little reason to continue my search, should I find a home that really “takes my breath away“. Obviously, all homes will need to be appraised and inspected, but assuming both of those go well, I believe I am ready to buy when I find the house I want. I don’t need a long decision making process, but I am fortunate to be making this decision alone. Obviously, if I were married, I would have a wife, and potentially kids, to take input from as well, which would lengthen the decision making process.