House buying tips (Austin: sales, HOA fees, crime)

[didadi]

I wanted to write this up before I forget everything I did for the house-buying. So here they are.

I keep telling "house-buying" because as a buyer you are buying a HOUSE. Not a HOME. Its the people who live in it make home once you start living there. "HOME" has some emotions attached to it. Take it with a grain of salt and focus on buying a house (aka building) that you will dwell in and feel comfortable. Leave those emotions aside for the time being.

These are not in order and are my opinions/tips. Do not digress the topic by arguing onto some points. Definitely please add to this with your findings/tips.

1. First and foremost, define your max budget. Come-what-may be within that budget. Typical rule of thumb is only 30% of your NET monthly income will go to mortgage+property tax. Not a PENNY more than this. Also it is 30% of the net monthly income of the person who earns lesser salary between the couple. (incase they are double income)

2. If you believe in vastu or feng-shui make a list of your requirements. That will avoid a big headache later. Also this will eliminate 50-60% of the properties that don't fit the bill.

3. Don't get into the dilemma of agent or no agent. Agent will help only at one place. Getting the comps for the house. If the listing agent is different than the agent u go with, there will be 2x3%=6% agents commission on the sales price. Although seller will pay for it, the house-price typically reflects that! . Basically buyer is indirectly paying more $ for the agents' commission.

4. Ask for a "settlement document" for a recently sold house from the agent if possible. You will not get this,but u'll know the various "FEES" that are hidden as part of the house-buying process. Most of the agents will NOT give this. Those documents are legally protected.,but every once in a while some agents will help you out on this and atleast give some verbal information.

5. Make sure to put down atleast 20%. No point in buying 200K house,when you don't have 40K cash to put down.

6. Stick to basics. Go with 30 yrs fixed loan,but make plans to pay it off early. 15 yrs is good too if you are comfortable. ARM doesn't make sense, even if its short-term.

7. Don't buy house backing a main road/highway etcetc.

8. Don't buy house without all sides masonary.

9. When u bid and are negotiating, try to get things like refrigerator, washer,drier etcetc. They all addup the value. Also addendums can have stuff like fixing the roof leak, rain-water gutters, etcetc.

10. Don't buy house without seeing atleast 3 times. 2 times during the day and once during night. Travel to the destination during peak hours and measure traffic.

11. Don't buy house without meeting few potential neighbors and have a chat with them. That typically reflects the local area. Worst case, neighbor will say NO. (Austin is pretty friendly)

12. Make sure both the school and school district both are very-good. My criteria was to have atleast Exemplary elementary, Recognized mid/high schools. This might differ based on the need.

13. Stick to one story house - since it has wider audience for resale.

14. Trees mean more $,but they should be in right places. Trees in the wrong places need to be cautiously considered.

15. Check for any warranty information on the house. They are typically transferred automatically,but do confirm that. Ask for paperwork/documents.

16. For we Texans, its good idea to search for "Soils Boring Test" or "Geotechnical Test" for potential foundation issues. Also speaking to thy neighburs might help. To me no builder has provided this info, but you can get this done from TAMU paying 40$.
Welcome to Texas A&M University Soil, Water and Forage Testing Laboratory

17. Search for the actual survey / blue-print @ the county / city office. Many times they will be having the copies of plan,blueprints and survey information in-case you need it. Also double check the sq-ft / area etc .

18. Research thoroughly about the typical properties using the county appraisal district websites. They reveal lot of information.

19. Don't forget to read "Home-buying for dummies" atleast a couple of times. Question every new verbiage and get used to it. (lender, mortgage, ARM, gutter, blah blah).

20. Check for typical HOA fees, restrictions & monthly utilities bills from the seller. Ask for atleast 2 months in summer and 2 months in winter. This will reveal a ton of information about the maintenance of the house and future expenses.

21. Define how far you want the house from your workplace. Do give some consideration about your future work place. This is tricky,but doable. Like don't want to travel more than 10 miles or 20 minutes in peak traffic.

22. Check how much is the property tax rate in the area.

23. Check a good inspector , arborist if needed.

24. Have every single document in pdf format in email or computer. Its easier to manage that way. I have even asked the final settlement during the closing in pdf format.

25. Ask for some $ from agent's commission. (Your buyer's agent, if you have one). This is becoming normal practice.

26. Check the crime scene using public city/county websites. Talk to people / future neighbours for insider information. :-)

27. Check for any history of damages and repairs. Have receipts/documents for both. For eg: hail damage, roof repair, foundation repair, fence repair, paint job etcetc.

28. Ask paperwork/documentation for EVERY SINGLE appliance / item in the house that has warranty available. Ask for manuals as well.

Hmm, what else to write - I'll add incase I remember anything more.
I'm opening this up for further discussion. :-)

[texasdiver]

Good list. A couple of other suggestions.

1. Test drive all your future commutes during commute time. Not just your drive to work, but also the drives to your kids schools, the drive to the grocery store, etc. Mapquest is not a substitute for actually test-driving the commutes. My family's daily commutes are to two different places of work, 3 different schools, the Y for swim team, the health club, the local HEB, and the local soccer complex.

2. Think about how your commutes complement or confict. Is your kid's new school going to be on the way to your job or in the opposite direction?

3. Ask for copies of recent utility bills. Especially electricity and water which are the major usage-dependent bills.

4. Walk/run/bike the neighborhood. If getting out sans car is important to you, explore what it's going to be like to walk/run or bike in your area and figure out if you can access important services like the local grocery on foot.

5. Google maps will let you explore the neighborhood in street view mode. This will often let you see what the neighborhood looks like in a different season.

6. Investigate cell coverage and internet service if this is important to you and especially if you are going to be working for home. That's an important thing to ask the neighbors. Do they get good coverage and if so, which cell company do they use? What is their internet provider and is it good? Is there fiber-optic in the neighborhood? Is the neighborhood close enough to the phone companies main switch for DSL service? My current neighborhood has DSL but we are too far from the switch for good DSL so the only real high speed internet is Time Warner cable. I'd kill for FIOS or some other fiber optic option to cable. Many rural areas in Texas have very poor cellular and internet service and you will pay a fortune to deal with the work-arounds.

[CarnivalGal]

I have to disagree on a couple points.

Our realtor was invaluable. If you get a good one, it can make your life so much easier. We got into a bidding war when buying our house, and she handled all of the BS for us AND got us a great deal on it. She was worth every cent of her commission. Just be sure you get a good one.

Not everyone likes one-story houses. We looked at several and didn't like them for two reasons. First, they all seemed to have confusing floor plans. I felt like they were a maze of hallways. And these were newer homes with "modern" floorplans. Second, one story homes take up more ground space. So a 3100 square foot one story home will take up a much larger chunk of your lot than a 3100 square foot 2-story home. And I would rather have more yard.

[G Grasshopper]

Originally Posted by mm57553

Not everyone likes one-story houses. We looked at several and didn't like them for two reasons. First, they all seemed to have confusing floor plans. I felt like they were a maze of hallways. And these were newer homes with "modern" floorplans. Second, one story homes take up more ground space. So a 3100 square foot one story home will take up a much larger chunk of your lot than a 3100 square foot 2-story home. And I would rather have more yard.

There was a thread on this at one point. I think this depends on where you are in life and what your requirements are. A couple going into retirement would probably be best served in a one story, while families may find a two story more convenient.

In addition to asking for the manuals from appliances, I would ask for the remnants of paint from the various rooms and exterior, extra tiles from remodeling, colored grout, etc. I think that conscientious home owners will have these, in the event a repair or touch up is needed, and as the new owner, you will want these.

Good list.

[G Grasshopper]

I forgot to mention that with the house we own now, we had an informal get together with the owners before they left the house. We walked around the whole house and lot, and they told us about why they had planted things, how they had solved problems, what works best with what is there, where keys are to miscellaneous things, how to care for the floors, etc. It was very useful, pleasant, and gave us a feeling of continuity. Of course, this is not always possible, but if you can, I recommend it. This is not a substitute for the final walk through.

[CarnivalGal]

Originally Posted by G Grasshopper

There was a thread on this at one point. I think this depends on where you are in life and what your requirements are. A couple going into retirement would probably be best served in a one story, while families may find a two story more convenient.

I agree. We plan on staying in our house forever and thought of that, even though we are young now.

But the master is on the first floor. Frankly, once the kids are grown and gone, the upper floor probably won't get used that much.

[centralaustinite]

all sides masonry?

I would die before I'd live in an all-red brick, big hair (double height entry) house!

Definitely use an agent, read everything, including the loan docs and if you don't understand something, spend $200 and have an attorney read it for you!

[kingugly]

Originally Posted by centralaustinite

spend $200 and have an attorney read it for you!

If only you could get an attorney to do anything for $200.

[centralaustinite]

Originally Posted by kingugly

If only you could get an attorney to do anything for $200.

Well, maybe $400, for say, an hour and half of their time. You don't need a $600 an hour lawyer to read closing docs or loan apps. Even better, have a paralegal read it and a lawyer review their work.

[G Grasshopper]

Originally Posted by didadi

8. Don't buy house without all sides masonary.

I don't get this. Is this just an opinion because you like masonary? I've heard people say that there is less upkeep than with other surfaces. But I have a family member in Austin who's house is about 20 years old with wood siding, and they have only had to repaint the trim. And it always looks nice. What's the deal? People all over the country have really upscale houses with many different outside surfaces. Is it just a Texas/Austin thing?