Home Buying Tips For Success - Five Pitfalls to Avoid When Purchasing a Home

Even in the best of circumstances, home buying or selling is stressful, and some of the biggest potential deal-breakers lurk in the time right before the sale closes. Home buying stress can be easily avoided, however, with the following five home buying tips.

Home Buying Tip #1 - Home Inspection Results

Todays home purchase contracts typically include a home inspection contingency clause, which allows the buyers to choose and hire a home inspector to thoroughly evaluate the property. Once the contract has been signed, the home inspection usually happens quickly. Arriving with the buyer, the home inspector will go through the entire property for a thorough two- to three-hour evaluation of a homes structural and mechanical condition. Home inspectors may also do tests for, check for, wood-destroying insects or perform other services requested by the buyer.

Findings can range from minor issues calling for low-cost repairs to major toxic troubles like the presence of underground oil tank, mold, asbestos, termite infestations, rodent overruns, and lots of dangerous lead paint. Depending on the severity of the findings (which, by the way, are only reported to the hiring party), there is either a new round of home buying negotiation accommodating the price and execution of repairs, or an abrupt halt to the home buying proceedings due to costly and dangerous problems.

Here's a home buying tip to help sellers avoid potential these hassles: before you list your home, have the home inspection done. That way, you'll be fully acquainted with possible issues and have the opportunity to correct them or, as several states require, will be prepared to make a complete and honest disclosure that will reduce your liability as well as surprises during the buyer's inspection. Thus, lower unnecessary anxiety and allowing a smoother transaction. To find a local, qualified home inspector and more home buying tips for home inspections, visit the American Society of Home Inspector where you can also get acquainted with the home inspection process via a virtual home inspection.

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Home Buying Tip #2 -Stubborn Sellers

Combined with results of the buyer's home inspection, home sellers not wanting to back down on price is another factor that can bring negotiations to an end. It's no surprise that the seller should want to get the best price possible for their home, a factor that's magnified in the current housing market. But being unwilling to budge after a home inspection reveals negotiable fixes can result in a bigger cost: no sale at all.

"It's all a matter of the individual," says Ken Gunther, president of First Interstate Financial, a mortgage banking group based in Shrewsbury, New Jersey. Most sellers obviously have a number in their mind, thinking, I'm not going to sell this house unless I can clear X number of dollars, or I need to clear X number of dollars so I can move to the next property. As a result of that, there isn't the home price flexibility that you sometimes need.

Home Buying Tip #3 - Unexpected Appraisal Results

If things have gone smoothly during the home inspection process, another possible bump in the home buying road is a post-inspection home appraisal yielding a value different from the contracted price. How significant that difference is can again be in the eye of the beholding home buyer.

For instance, a home buyer who has the finances to manage the contracted price, wants the home, and plans to be in it for an extended period of time, but may feel that they'll be able to come back and gain that value differential in a future market upswing. While another buyer in different circumstances will respond with a demand to go back to the negotiating table for a better deal and the seller may refuse, ending the process.

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Home Buying Tip #4 - Financial Fumbles

Sudden status changes or other bad news regarding personal finances can also derail a home buying or selling deal. Credit score is one, although Gunther notes this is a rare surprise in the present market since most realtors require buyers to be pre-approved by the lender before the home search begins. More common and less predictable are sudden income changes that hit after approval and during the purchase process: a job could be lost, depended-upon overtime hours could be cut, or stock options designated for a down payment could unexpectedly drop in value.

Another thing that first-time home buyers in particular may not count on is the expense of home ownership above and beyond monthly mortgage payments like a furnace that gives out or a water heater that leaks. If unprepared for these costs, a financial freak-out may happen.

"Home buyers should really sit down and write a budget checklist, because we're qualifying them for a loan on their gross income, not their net," says Linda Neal, underwriter at First Interstate Financial Corp. Say I'm qualifying someone for $3,000 a month in income, but when it comes down to it, they're only netting $2,000. When you calculate your mortgage, your taxes, your insurance, your utilities. Everything is higher than when you rent. You're adding costs when you purchase a home.

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Home Buying Tip #5 - Legal Loopholes

Legal surprises can leap out during the fast-paced, stressful days before a sale is finalized. It's important to have an attorney's representation during the contract period. A survey may reveal that a property line doesn't fall quite where you thought it did, limiting your future plans; an easement can put you in an uncomfortable relationship with the city or state government; or previous bidders may not have been properly released from their contract and still have a legitimate claim on the home you're planning to buy. So, be sure to get a legal professional involved in the process to ensure that every "i" is dotted and every "t" is crossed.

Finally, be aware of potential penalties and fees related to cancelling a purchase contract to buy or sell a home. These vary according to the agreement structure and policies of the professionals involved, but the more you know ahead of time, the better off you'll be if a deal-breaker enters the home buying or selling picture.

Tom Kraeutler is the Host, Founder and Chief Home Improvement Evangelist of The Money Pit. He is a hands-on home improvement broadcast journalist and the kind of guy homeowners want to call at midnight when their basement floods. He first earned his home improvement stripes as a professional home inspector, amassing over 20 years experience learning how houses are put together, and how they fall apart!

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Home Buying Tips - Choosing the Right Style and Color For Your Home

While shopping for a home, you should expect yourself to start feeling a little confused because of all the available choices that you would have. The rising amount of property sales in the real estate market makes the process of home selection more complicated than it should be.

However, finding a perfect new house for you and your loved ones should not be a headache. You can actually make good and sound choices once you understand the different housing styles and types that are available on the market.

When choosing the right style and color for your home purchase, you should be conscious about your needs and preferences as a buyer. Once you have a detailed image of a property that you would like to buy, it would be easier to choose among the wide selection of real estate properties. Here are some home buying tips that you should remember while choosing the right style and color that your prospective house should possess.

Understanding various housing styles

You can always choose from the numerous housing styles that are available on different property listings. However, you should focus on the major types in order to avoid confusing yourself with too many options. These styles include the bungalow, colonial style homes, high-rise condominium units, luxury homes, townhouses.

Bungalows are the popular choice among most home buyers. A bungalow is a compact house that contains two or more smaller rooms. Usually, it is finished with either a basement or an attic, where additional rooms, living areas, or storage rooms can be situated.

It also has a front porch or bay windows that make its structure look classy and elegant. If you want to have high levels of privacy in a one-story home with additional room options, a bungalow would be the best choice for you.

The popularity of high-rise condominium units is also increasing. These housing options are for those who cannot afford to live in traditional house types. These units are usually located in a high-rise building, where a number of condominium units are situated adjacently to each other. This is the best housing option for you if you cannot afford to buy a piece of land together with your property purchase.

Townhouses, usually confused with condominiums, are entirely different. A townhome is also found beside a chain of apartment-like units, but its terms of ownership are different from those in condominium units. Its price is inclusive of the land where the structure is built, hence granting the buyer ownership of the land where his house stands. This is why a townhouse is more expensive than the price of a condo unit. If you want to earn more control over your property, a townhouse would be suitable for you.

A luxury house is the most expensive property type. It has a very big space and a very sophisticated design that meets the preferences of those living in high-end neighborhoods. If you have enough money to buy a luxurious property, you can prioritize this housing style in your list of other viable options.

Comparing different paint colors

Once you have chosen a specific housing style, you should start considering your preferred exterior and interior paint colors. The main rule in this step is to remember your distinct preferences when it comes to choosing house colors.

If you want a home that can catch the attention of passersby, you should look for a property with unique and bold colors. Meanwhile, if you like a classy-looking house that looks neat and simple, purchase a property with neutral to light colors of exterior paint.

Always remember these things while looking for your dream house. Capitalize on your opportunity to invest on a real estate property by knowing all your available options.

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