You found a home you want to buy – that’s so exciting! But, we have some advice for you before you pop the champagne. Make sure to do your due diligence first!
There are several steps you can take to make sure that the house will both fit your lifestyle and be in line financially with what you’ve planned. Let’s take a look at these two categories and how to do as much as you can to make sure this home is the right one for you.
FINANCES
When you talk to your lender to get pre-approved in the homebuying process, the lender will use an estimate for taxes and insurance based on the norm in the area where you are looking to purchase. However, there are times when a house is out of line with the norm.
- Taxes:
- Be sure to check the assessment on the city or county site to make sure the taxes aren’t out of line with the norm for your price point.
- Be aware that when home values go up, so do taxes. Expect an increase each year.
- Insurance:
- Similarly, reach out to your insurance agent to see what the insurance will run on the home to make sure pricing is also in line with the norm. If there have been a lot of claims on a particular property, it can cause the insurance rates to rise.
- You’ll also want to check to see if the house is in a flood zone which will require added insurance. You can find the official flood map and risk level for your specific address by visiting the FEMA Flood Map Service Center. You may also want to check floodiq.com, which uses predictions based on research from the National Oceanic and Atmospheric Agency (NOAA). This site incorporates the predicted effect of climate change by home address and shows various tidal flood and hurricane scenarios now — and into the future.
- Earnest Money Deposit:
- Prepare your funds now for the earnest money deposit.
Learn more about buying a home with these posts next:
- Signs You Are Ready to Buy a New Home
- Tax Benefits of Homeownership: What to Know
- You Don’t Need 20% Down and Perfect Credit to Buy a Home!
LIFESTYLE & COMMUNITY
It is so important to love the community you will be a part of! Here are some things to check to make sure the community is everything you expect and need.
- Time of Day: Be sure to visit the neighborhood at different times of the day. Some neighborhoods feel very different at 9 a.m. than they do at 9 p.m. Similarly if there is time, check out the neighborhood on the weekend and during the week to get a true sense of the area.
- Commute: This is a big one in our area! While it’s always best to do the actual commute to work, school, or other important locations at different times of day, sometimes that is just not practical. The good news is that Google Maps (for driving) and Metro’s website (for bus and Metro) can provide very accurate predictions for what to expect when commuting at different times of the day.
You can also check out our post about the best neighborhoods in Alexandria for easy transit.
FAIR HOUSING ISSUES
As agents, we are not allowed to discuss various things that fall under fair housing, including school ratings and crime in a neighborhood. If these issues are important to you, be sure to do your own research. Even though your agent can’t talk to you about these items, they can often let you know where to gather the information you need or put you in touch with clients who live in the neighborhood.
- Schools: You’ll want to be sure to confirm the school district with the actual district and not rely on what you see on any website.
- Sex Offenders: If you want to check out if there are any sex offenders in your future neighborhood, be sure to visit the National Sex Offender Registry.
- Crime: If you are concerned about crime, give the local police department a call.
PERMITS & PUBLIC RECORDS
- Checking Permits: If major work or renovations were done on the home, it is crucial to verify that the proper permits were obtained. Pay special attention to permits that were never officially closed out, as this has become a common issue in the area. Taking a look at the permit history can save you from unexpected headaches down the road.
Keep reading about how to look up permits in the DC area.
IN CONCLUSION
In addition to the above, I’d be remiss in not mentioning a couple of other tips we’ve picked up over the years.
Once you’re interested in a house, even if you haven’t been through it yet, it’s critical that you let your agent know right away!!!
Once your agent knows you’re interested, they can advise if you need to see the house right away or if it’s okay to go to the open house. Often in this market, waiting for the open house is too late! The house may sell before then or may require doing a pre-offer inspection in order to compete.
There are several other due diligence items that your agent should do on the home, such as running comps (and a whole lot of other things). Giving your Realtor enough time to ask the listing agent the right questions and do the proper research is critical!
Your Realtor will also let you know if you need to move on the house right away. In some cases, there may not be time to do all of the above, so starting the process of your due diligence on neighborhoods before you’re ready to buy is always a smart move!
Here are a few more home buying posts you might find helpful:
- What Does Contingent Mean in Real Estate?
- How to Negotiate as a Home Buyer
- What to Expect on Closing Day as a Buyer
If you’d like to chat about the buying process or buyer due diligence, either virtually or in person, we’re always happy to talk! Fill out the form on this page, or give us a call/email directly.
Sue Goodhart | sue@thegoodhartgroup.com
Allison Goodhart DuShuttle | allison@thegoodhartgroup.com
Phone: 703-362-3221
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