Buying a House Checklist

Buying a house is no simple task, but a robust plan can help make the whole process much less intimidating.

There are plenty of articles that detail the steps and documents involved in a home purchase. However, when it comes to house hunting, it is equally important to know what you are looking for. Understanding the market conditions and red flags in a home that may lead to buyer’s remorse down the line will go a long way in building your confidence as a buyer.

That is why we have compiled the ultimate homebuying checklist to be your guide as you enter the housing market.

How to prepare to buy a house

Before you dive into house hunting expeditions, it is important to start by taking certain steps that can help set you up for success. These include:

Find the best real estate agent

Finding a great real estate agent can save you time and money. By interviewing potential real estate agents, you can better understand their knowledge of the areas you are searching. They should have a commanding understanding of the schools, shopping, housing prices, and more. Sharing your needs and goals for your home will allow them to tailor the search and narrow the options. It can get tedious when you waste your time visiting too many homes that are not your style, may not be in your budget, or ultimately do not suit your needs.

A great real estate agent can help you save money by understanding the value of the neighborhood you are searching. Is the seller asking for too much? Is this house a bargain for the neighborhood? They can often help determine if the sellers are motivated to sell, and potentially how motivated they might be to lower their price. Spend time and hire the best real estate agent for your needs. 

Compile a list of homes to compare and contrast

This can and should be the fun part. You can search the web for houses that fit your needs and style, narrow your search, work with your agent, and start visiting homes. Understand the layout of the house, the neighborhood, noise, and note any security issues. Are there enough bedrooms and bathrooms? Is the home light and airy? Now you should refer to your checklist of housing needs and wants and make changes if necessary.

Once you have narrowed down your search, visit the potential home several times, at different times of day, and various days of the week. Understand the potential traffic patterns, steepness of the driveway, or parking needs. How does the sun hit the home at certain times of the day and is rain an issue with water runoff? All of this may sound miniscule, but as you spend time in this house, little things will stand out. For example, if your driveway has a steep slope, what does that mean in foul weather? Will rain, snow, or ice become a factor? Will carrying the garbage cans uphill be a chore? How much yard care, if any, will be needed and are you up to the task? Spend time making your choices and narrowing them down. You may also find that you are adjusting your initial housing needs and wants as you learn more over time.

What to look for when house hunting

Once you have completed the first items on your homebuying checklist, the fun part begins: house hunting! However, it is not all fun and games. As you tour potential homes, there are a number of details that you should pay attention to in order to ensure you are not overpaying or committing to a property that you will regret buying later.

If you are a first-time buyer, here is what you need to keep an eye on as you look at homes:

1. Healthy structure: roof, foundation, and systems

The roof may be out of sight, but it should always be top of mind. And that goes for the home’s foundation and various systems, too. Small cracks can turn into big money issues down the road, so you will want a solid foundation and sturdy roof in the home you buy. New construction roofs should last you 20-30 years. However, if you are buying an older home, you will want to inquire about past repairs and look for signs of current issues. The same goes for the foundation of the home.

You will also want to make sure that the HVAC system, electrical grounding, and septic systems are all up to date and in good shape.

 2. No water damage

Water in the home can destroy walls and floors, as well as lead to costly repairs. While water issues can be hard to locate and correct, signs of past damage can be a warning of future problems. Discolored rings on ceilings are good to look for, but more subtle clues can include musty smells or appliances that are propped a few inches off the ground.

3. Reasonable renovation needs

It will be hard to find a house that is perfect from the beginning, unless you are building from the ground up. However, you should not let outdated flooring or wallpaper stop you from loving the rest of a home. These are small issues that are relatively inexpensive to fix once you have moved in. It is important to think twice, though, before committing to a complete fixer-upper property. It is important to make sure the price you are paying, plus any obvious renovations that you notice, will fit within your budget.

4. Clean insurance history

Investigating a home’s insurance history can help you avoid a purchase that will end up costing you in the long run. Even when you become the new homeowner, your insurance premiums could be affected by past claims made on the property. They will also indicate any chronic issues within the home that may crop up later on. Be sure to ask the seller for the disclosure report to uncover any problems and ask them if they have already taken steps to correct them.

5. The right location

Even your dream home can turn into a nightmare if you live in the wrong neighborhood. If you prefer to be within walking distance of top restaurants and the nightlife scene, suburbia will not be your ideal location. Or, finding your dream house could turn into heartbreak if you discover that the school district it is in does not fit the needs of your children. For all of the evaluating you do on the property itself, do not forget to take a hard look at the surrounding area as well.

6. The right size

You may already have an idea of what your perfect home looks like. From the number of beds and baths to how much outdoor space you want, it is important to consider how your lifestyle will impact the type of home you want to buy. While you cannot predict the future with true certainty, try to consider what your life may look like a couple years from now. Will you need space for a growing family? Are you interested in an extensive gardening plan or outdoor space? All of these and more are the things you should consider before jumping into a home purchase. Remember, once you buy a house, you will likely be living in it for years to come so it is important to choose a home that will suit your evolving needs.

Do not forget to ask the important questions

Finding the right home for you will take time, research, and careful consideration. As you review your house hunting checklist, there are a couple key questions that you will want to be asking. Some will take a little digging to uncover the answers, and not everything will be apparent during the house tour. It is important to ask the selling agent for insight.

1. Why are the owners selling?

2. Is the home for sale as is?

3. When are offers due by?

4. Are there any current problems with the property that will need to be addressed?

Be sure to confer with your own real estate agent for more questions to ask and have them make the inquires on your behalf.

What happens when you find a house you love?

When the time comes, and with the right preparation and mindset, you will find a house that you want to turn into your home. The next steps will be putting in your offer and getting ready for potential negotiations with the seller. Here is what you can expect to happen.

Make an offer

Once you have found the home, you will work with your agent to understand what a good offer is. They can guide you with advice on what the comps (houses in your area) have sold for compared to asking price, and how this home might relate. Understand how hot or cold the market is. Are there lots of houses on the market that make this a buyer's market? Meaning it is better for buyers as there is more supply than demand.

Prepare for the home inspection

Once you have made an offer and negotiated a price for the home, you will need to have a home inspection during which will have an independent inspector check the functionality of the home including electrical, plumbing, fences, roof, appliances, and more. You are likely to get an exhaustive list returned after the inspection of things that work great, and things that may need replacing or improvement. All these things can then be renegotiated with the seller or, depending on the results of the inspection, you can back out of the sale.

Secure your financing

Now you are ready to apply for your loan and go through the final steps in securing your financing. There will be paperwork, credit checks, sharing of your financial documents, and income verification. You will likely need bank statements, tax documents, and proof of income.

Close on your new home

You are in the home stretch and before closing on your home, you will have the opportunity to do a final walk-through. This ensures that all the necessary repairs or updates that were agreed upon were taken care of. You can also review the condition of the home to ensure nothing has changed for the worse since you initially agreed to purchase it.

At closing, you will need to be prepared to sign a lot of papers. These include documents about the loan, taxes, insurance, and so on. Once complete, you will likely be handed the keys to your new home!

Remember, this checklist is available for you to reference at any point during your journey to homeownership. Good luck, and happy homebuying!