Make an Offer

Now here's an opportunity to show what I know! I do now finally have a place under contract but it was a case of third times a charm. I made offers on two other places before I got this one. So I've been through the offer process a few times.

A lot of what's important may be in the negotiation, which is our next section. However, to begin you must make a first offer so:
1.) make sure you want this house before you make an offer. When you make an offer you are signing half of a contract and if they sign the other half, it's going to take some serious problems with the house or a lot of money to get out of it. This sounds obvious but apparently people get cold feet and decide they want out. You better know before you go in.
2.) "earnest money" is a sort of mini-down payment securing your interest in the house and your commitment to the contract. This is typically around $1000 or up to 1% of the offer. The more money, the more interest it may signify; more earnest money may give you a leg up in a multiple offer situation. You should get this money back at closing.
3.) there are several aspects of the contract you will have to fill-in. When do you want to close? How much damage (during inspection) is "too much" (negates the contract)? Do you have to have an inspection? What pieces or parts of the home do you want as part of your purchase? All these things must be clearly stated and each can be a point of negotiation.
4.) take a good look at everything before you make that offer. Be aware of the flaws and make sure (with your agent) that you're clear on what needs fixing before you take ownership. These details must be in the contract.
5.) this is the point where other things may come up. Known issues with the place (make sure you see a disclosure statement on the property) such as the existence of lead based paint. But don't let all this freak you out. Some problems are to be expected. All home built before 1978 have lead-based paint concerns. Don't panic; read the information, make an informed decision based on all the factors.

That's the high points of the offer. I'll only add that, to me, this was the most excruciating part of the process. The offer means you're interested, really interested, and waiting in agony for a day or more to hear the outcome. Just try to find something to distract you.

Home Search

I'm starting to fall behind and I'm literally in the middle of a session at a conference on how to blog right now so... call me inspired.

Searching for a home is typically everyone's favorite part of this process. This is where you wander around and look for "your" home. You'll learn a lot about what you can afford during this phase. All the photos of places you may have looked at up to this point will be very different in person.
You may realize you need to spend a little more money to get what you want (people rarely decide they want less...) but as with my previous post, I encourage you to consider alternative locations, types of homes etc. Sometime things that you never thought of end up working out better than you ever could have imagined.

I honestly think that 1.) most people don't need much help with this step and 2.) that any help you do need should come from a qualified real estate agent. And if you're shopping without an agent let me just say one final thing:
I'm finally under contract (yeah! more on this later) for a townhome that hadn't even appeard on my MLS site when I went to see it. If it hadn't been for my agent discovering it, emailing me, and setting up a time to see it that day, I would not have seen it (or even known about it) in time to put in an offer on a very popular place (it turned into a multiple offers battle). Real Estate agents are really a huge asset.

Neighborhood Information

I've neglected you, blog. I apologize.

Fortunately, since I still have 8 steps to get through, my home search is taking quite a bit longer than anticipated. It's not that I'm not looking. If you ask my poor, frustrated agent we've been out ten times and seen dozens of places. This is an exaggeration, but we have seen a lot. I am picky, but unfortunately I'm also unlucky. I've made two offers and both have fallen through for different reasons. But I'll save those stories for the Make and Offer/Negotiating to Buy sections. I can talk about neighborhood information now though.

Since I am single, with no kids and a fairly centrally located job, my neighborhood concerns are not those of most house hunters. I don't need to worry about the quality or proximity of schools or a good karate class. I don't have to worry that it will take me 30 minutes to get to work (though I could find some place 30 minutes away there are good options much closer). I need only be concerned about the noise in the area, maybe the grocery store chain and how far I am from a movie theater and good coffee shop. I know you're crying for me.
Ironically I have still been having real troubles. Part of my problem is that I had been looking in a very small area until recently. I had one zip code in mind, with an alternate that is, for all intensive purposes, out of my price range. While bored I wandered into some other zip codes and stumbled across a place that was $20,000 cheaper and much closer to tempting and useful locations I had never thought of. While the place didn't work out (again, more on that later) it has opened my eyes to a whole new neighborhood, that may now even have become my first choice.

So I guess the moral of the story is don't be blinded. Sometimes a higher city tax really is worth it. Sometimes a slightly longer drive means more house. Keep an open mind and always have your checkbook with you; you never know when that perfect place will pop up.