Buying a Home

If you want to buy a home, I will:

I  AM NOT COMPENSATED UNTIL YOU HAVE PURCHASED A HOME

Is this the time to become a buyer rather than a renter? 
Here are some issues to consider:

• In general, the longer you are likely to remain in a residence, the more advantageous it is to own rather than rent. If your job and family status are likely to be stable for the next few years, then your housing needs should also be stable. This means that it is time to think in terms of buying.
  
  
• In general, if your salary just shot up by 20 percent or more, now is not the right time to buy a house. Instead, use the extra income to save up for a year for a down payment, and you will find yourself in a much better position to buy at that time. 

For example, if the house costs $90,000 and a comparable residence rents for $500 a month, then the house price represents $90,000/$500 = 180 months = 15 years of rent. It is a good time to buy when this figure is less than 15 years. It is a good time not to buy when this figure is more than 25 years. Otherwise, this particular indicator is not decisive. For more refined analysis, see the Rent vs. Buy Calculator.

This simple formula does not apply to condominiums, because it does not include condominium fees. Personally, my inclination is to recommend that people who are buying their first home should shy away from condominiums altogether. Condominium complexes that appeal to first-time homebuyers have a tendency to turn into rental communities, because of the high degree of overlap between young renters and young buyers. Therefore, as an investment, condos can be highly speculative, and the price easily can go up or down 20 percent in a hurry depending on luck and timing.

Decide Where to Buy

The first step is to identify a neighborhood where you would like to live. People take into account factors such as crime rates, school quality, commuting time, and neighborhood amenities. Also, families with young children want to make sure that there will be other children in the neighborhood. List the criteria that are important to you, and focus on neighborhoods that meet those criteria.

Many people find that they cannot afford the perfect house in the perfect neighborhood. This means that you have to compromise. In the long run, most people find it easier to live with a less-than-ideal house in the right neighborhood than the other way around.

The best time to engage the services of a real estate agent is when you have identified the criteria that matter for you in choosing a neighborhood. Once you can articulate the factors that you consider important, the agent can tell you which neighborhoods meet your criteria and help identify houses that fit within your budget.

Moving Tips

Four weeks to go:

• Call moving companies for a free estimate. Cost will vary depending on distance, weight and optional services.
• Look through your house to determine items to be discarded or donated to charity. Have a garage sale!
• Inform schools of transfer. Make arrangements for enrollment/registration in new schools if necessary.
• Most homeowner’s policies do not provide adequate coverage for moving. Check with your agent and consider purchasing additional coverage from a moving company.
• Begin collecting boxes with covers if you plan to pack your belongings. You can purchase packing materials through moving companies or contact local grocery stores for extra boxes. Be sure to stock up on packing tape!
• Consider beginning to consume perishable and frozen food items to minimize waste.

Three weeks to go:

• Begin packing!
• Notify the post office of your new address and send change of address cards to friends, family, subscriptions and any billing companies.
• Make necessary travel arrangements including interim housing and car rental. Be sure to record confirmation numbers.
• Collect medical records and prescriptions from physicians. Ask for recommendations for doctors in your new area.
• Place legal, medical and insurance records in a safe and accessible place.

Two weeks to go:

• Arrange to disconnect utilities/services in your current residence and coordinate installation of utilities/services in your new home.
• Close/transfer bank accounts and open accounts in your new city.
• Take pets to the vet for immunizations. Ask for advice on moving animals.
• Draw a map of your new home and where the furniture will be arranged.
• Return library books and any borrowed items.
• Be sure to cancel newspaper subscriptions and/or any special services you have (i.e., landscaping/lawn service, snow plow, etc.).

One week to go:

• Prepare car for the trip. Check the oil, tires, brakes, etc.
• Drain water from hoses.
• Drain gasoline and oil from any lawn or power equipment.
• Remember to pick up items sent to the cleaners or for repairs.

Days before:

• Defrost and clean out refrigerator
• Pack your luggage and separate any items you will need in the first days in your new home (i.e., a current telephone directory - you may need to refer to it for calls to residents or businesses in your former hometown). Label these boxes "Load Last."
• Reconfirm travel arrangements.
• Reserve ample parking space for the movers and provide clear paths inside the house.

The Big Day!

• Be on hand to answer any questions.
• Go over your inventory with the driver.
• Be sure to point out all FRAGILE items to the movers.
• Check, double check and triple check to see if anything is left behind!
• Do not leave the house until the movers are gone.

A Few More Moving Thoughts:

Moving your computer - Make copies of all your files and software. If possible, pack your computer, monitor, and printer in their original boxes. If not, ask a moving company for boxes made especially for computers.

Packing supplies - 1.5" packing tape, thick markers, packing pellets, scissors, labels, tissue paper, newspaper and blankets.

Inventory - Review inventory list.

Pack photographs between sheets and blankets in boxes for added protection.

At your destination consider hooking up the TV and VCR to occupy children until the truck is unloaded.

For a moving checklist - click here

Enjoy your new home!