When you are checking out a home, remember that the furniture and decor won't be there. Colors can be changed, wall paper or paneling can be removed, and appliances can be replaced. These are small issues in the grand scheme. Unless that is, you want a perfect home where you don't have to lift a finger to make it your own.
As I've
previously mentioned looking in the country can be challenging. There are less options so you need to be less picky about these "swappable" items. Instead focus on the location, land, neighbors, and bones of the house. These are the non-negotiables. You can always add on or build a garage/barn in the future if you need more space.
The location-Is it a good location for you? Close enough to work? Far enough from neighbors? Close or far enough from the road? You will be responsible for the upkeep of your driveway. If rain washes away the stone you will have to replace it. If it's paved, you'll have to patch it or fix cracks. In the winter, you will have to plow when it snows. Do you mind taking the trash down the long lane? If it's close to the road, will the sound of passing cars bother you? We visited one home whose windows rattled when cars drove past because it was sooooo close to the road. Is it on a highway with lots of traffic noise? Even some county roads have a great deal of traffic-are you prepared for that? Is it near a railroad? Will the sound of honking engines or rattling cars bother you? Is it near high tension power lines? Some people claim there are increased risks of cancer when you live close to power lines. Are you willing to take that risk? Is it near a ditch or drain? Some counties make you pay extra taxes for the "privilege" of having them. Sometimes you are even forced to pay an additional fee when the county does maintenance on them. Are you willing to do that? Does the property bump up to a State or National Park? There are pros and cons to this. It can be an "extension" of your property. You won't have to worry about neighbors building in that direction. However, people will be hiking trails and exploring next to your property. Some may even venture onto your property. You may want to explore that section of the park to see how likely "surprise visitors" might be. You may also want to look into any special restrictions that may apply.
The land-If you are wanting trees and it's barren, it's going to take a while (or a lot of money) to get shade. A woods doesn't appear over night and similarly forested areas require work and money to clear. If the land drains toward the house, you've got problems. If you can, visit after a hard, heavy rain. See if there is flooding on the property. We drove by one 15 acre property after spring rains had hit and realized if we bought it, we'd have less than 4 acres of "dry" land if there was ever a hard rain or a quick melt. We don't want to pay for that much useless land. (This is where those drives come in; you never know when a home might go on the market.) Do you own the rights to the land or does someone else own rights to it (i.e. mineral rights)? Is the terrain super steep or ever changing? This can make farming or mowing more difficult. If you just want to hike or hunt, it wouldn't be an issue.
The neighbors-Do they maintain their property or does their yard look like a tornado hit it? Are they people you could rely on in a pinch, or would you feel like you'd need to lock your doors? Feel free to go up to neighbors' homes and ask their opinion of the property you are considering; it gives you a chance to learn something you might not already know about both the property and the neighbors.
The bones-Is there mold? I know that mold can be removed, but it's rather costly. Typically, mold is a great warning sign for other problems such as foundation cracks, leaking roofs, improper ventilation, and poorly installed objects. Is the home leaning or collapsing? If so, there are probably some very costly structural issues. Sometimes the issue can be stopped without too much expense. A friend was able to stop the home collapsing towards the failing chimney in the center of her house by adding a series of floor jacks. Whenever someone spills something at the table, the person sitting closest to the old chimney puts their hands out to try to stop the spill while others go to get paper towel. Spills always go towards their chimney. Is the wiring old? If so, you'll want to replace it so the house doesn't burn down. You may need to replace the circuit box, too. If you aren't capable of rewiring yourself, you'll need to hire an electrician which costs money. Does it have good plumbing or is it rusting or cracking and needing replaced? How is the exterior? Is the siding in good shape? If it has a wood exterior, is the wood buckling? Does it need repainted? Repainting is a long process and while it costs less than siding it is still fairly expensive unless you wait for a paint sale like I did. Are the windows properly sealed? What about the roof? Does it have multiple layers of shingles or are shingles missing? New metal roofs will last 25+ years, but they are expensive.
Now that you've looked at those items, you can look at the cosmetics. Will you need to remodel to fit your needs? If so, how much can you afford to spend on fixing carpet, woodwork, toilets, showers, can you save up to fix them in the future. All of this weighs into how much you should be willing to spend.
Have your realtor pull comps in the area, or do the dirty work yourself through your county's online GIS system or Auditor's Office. Some online systems have search categories where you can find comparable properties that have sold in the last year or so. Also, keep a list of any home that you thought was interesting but didn't place an offer on and see what the sale prices were. It will help you figure out how much you should offer.
It's not a bad idea to
find out how much you'll owe in taxes each year and get an insurance quote BEFORE you place an offer. Your bank will require you to have homeowners insurance. We learned that out in the sticks fire protection is more limited so insurance costs go up. There's also apparently a distance in which some insurance companies will refuse to insure your home due to the slow response time of fire departments. Certain features such as fire places or wood exteriors cause rates to increase. Know how much the house will cost to insure or if it can be insured before you place an offer.
Also be prepared to put ernest money down to show a buyer that you are serious about purchasing their property. This amount will ultimately be wrapped into the closing costs, but it tells the seller that you are serious about the home. You can offer anywhere between a couple hundred or thousand dollars. We've always done $500-$1,000 depending on the home. And speaking of closing costs, I recommend splitting them 50/50. We've had great luck with that, but you can always try to get the seller to pay all costs. Just know it's not as common as it once was.
Know that the property may be priced to sell or it may have some added wiggle room. You have to ultimately decide how much it's worth to you. We got in a bidding war for a property a few years ago and put in our "best" offer. We later found out that even though it was over the asking price someone had gone even further over the asking price. We knew what our limit was and stuck to it. Don't let a bidding war cause you to spend more than what you can afford.
All offers you make should be conditional based on passing an inspection by a professional! Despite keen observations, sometimes you just miss something or overlook the severity of it. A second set of eyes can keep you from wasting thousands of dollars or living a life of regret. We have been saved by a home inspector twice. It was well worth around $1,000 to save thousands. If they come up with major issues and your offer was conditional, you are able to back out of the purchase and your ernest money is returned. If you back out of the offer and you did not have this clause written in your offer, you could loose your ernest money if you back out.
If there is something on the property or in the house that you want included in the sale, make sure it is included. We were even advised to make sure that a pellet stove was included-even though it was the only way to heat the house simply because it
might be moved by the previous owner. Usually there is a sale sheet that tells what the house will come with, but it never hurts to make sure you request those important items they may have just forgot to list in your offer. It's also important if you want the curtains, mirrors, etc. to stay that you request them as well. You may even see if they are willing to throw in or sell a tractor or picnic table. No item is off the table unless they previously say they won't negotiate it. Remember, the worst they can say is "No." So, why not ask?
Once your realtor places the offer, be prepared to wait. The offer will give them a time frame in which they have to respond; you set the time frame. I've heard of times ranging between 12 hours and 3 days. We usually give them 24 hours, mostly because I might go insane if I had to wait 3 days to find out what they thought of their offer. Sometimes, the response comes within a couple of hours, sometimes you wonder if they will answer at all.
After the offer is accepted, be sure to set up the inspection within the first week. You may have other requirements based on the type of loan you choose. If an issue arises during the inspection you can ask to have it fixed or ask for a certain amount off of the price of the house so you can fix it. If you have them fix it, make sure that they use a certified individual and not using their "Uncle Bob."
If all goes well, you'll be ready to close. Closing typically takes place between 30 and 45 days after the offer is accepted. Before you close, be sure to demand to do a final walk through. Make sure they have removed all items they were supposed to remove and that they left all items they were supposed to leave. When we bought our first home, our realtor said that we didn't need to do a final walk through, getting receipts for items fixed would be enough. We wish we'd done a final walk through. For example, the previous owners had "Uncle Bob" write a receipt that he'd "fixed" the bathroom fan. One day, when I was getting ready, the vent fan fell and took a chunk of facial skin from me before hitting the ground. Had we inspected the fix, we could have seen his shoddy work. We would have also realized they took all the curtains and one of the mirrors that they had agreed to leave.
Side note: If your realtor is from the same company as the seller's realtor, beware. They may be looking out for themselves and not you. Also beware if the realtor knows the seller. They may not have your best interest in mind, but may in fact because of a bond with the seller be making sure the seller comes out on top. Don't ask me how I know this.
During the final walk through, if you notice that something is damaged make note of it. All these things can be fixed before you sign, but please, don't be petty about little things that don't matter. The home you are buying has been lived in and will not look "like new."
