Smart House-Hunting Tips for First-Time Buyers

House hunting is the part of buying a home most people picture first, and it is the easiest part to rush. If you have worked through the 30-day plan, you already know your budget, your cash position and what a lender is likely to offer. These tips help you put that preparation to work once the tours begin.

Start with a written priorities list

Before you tour a single home, sit down with anyone buying with you and sort your wishes into three columns: must-haves, nice-to-haves and deal-breakers. Be specific. “A short commute” is hard to measure; “under 40 minutes to work at rush hour” is not.

Questions about location

• How long is the commute at the times you would actually travel?
• What is nearby that matters to you daily, such as groceries, schools, parks, transit or family?
• Is the home in a flood zone or an area prone to wildfire, and how might that affect insurance?
• Are there plans for new construction or major roadwork nearby?

Revisit the list after your first few tours. It is normal for priorities to shift once you see real homes, and it is better to change them on purpose than by accident.

Know the full monthly cost of each home

Two homes with the same price can have very different monthly costs. For each serious candidate, estimate:

• Property taxes, which you can often check through county records
• Homeowners insurance, ideally with an actual quote, since premiums vary widely by location and the age of the home
• Association dues, plus the association’s rules and any planned special assessments
• Utilities, which depend on the home’s size, age, insulation and heating system. Asking for recent bills is reasonable.
• Maintenance, which never stops. Setting money aside every month turns surprise repairs into planned ones.

Compare the total with the comfortable monthly number you set in week two, not the maximum a lender may be willing to offer.

Working with a real estate agent

A buyer’s agent can help you find homes, understand local prices, write offers and manage deadlines. In many areas, buyers are now asked to sign a written agreement with their agent before touring homes. Read it carefully. It should explain what the agent will do, how they will be paid, how long the agreement lasts and how it can end. You can ask questions and negotiate terms before you sign.

What to look for on a tour

Staging and fresh paint are designed to make a home feel good. Your job is to notice the things that are expensive to fix.

Inside

• Water stains on ceilings, warped floors or a musty smell in basements and crawl spaces
• Cracks in walls, or doors and windows that stick, which can point to settling
• The age and condition of the furnace, air conditioner and water heater
• The electrical panel and the number of outlets in each room
• Window condition and signs of drafts

Outside

• The roof’s condition and, if the seller knows, its age
• Whether the ground slopes away from the foundation so water drains away
• Gutters, downspouts and trees overhanging the roof

Take photos and notes at every home. After three or four tours in a day, details blur together quickly. If a home makes your shortlist, visit the neighborhood again in the evening and on a weekend.

Making an offer with care

Your agent will help you decide on a price and terms, but a few principles apply everywhere. Contingencies for inspection, appraisal and financing are protections for you, and waiving them adds risk. The earnest money deposit you make with an offer can be at risk if you back out for a reason your contract does not cover. And in a competitive market, set your top price before the pressure starts, based on your own budget rather than the excitement of the moment.

Keep your finances steady while you shop

House hunting can take weeks or months. During that time, keep the habits from your 30-day plan: pay every bill on time, avoid new credit and talk to your lender before any big financial change. If your pre-approval letter nears its expiration date, ask what the lender needs to update it.

Finally, remember that you have rights as a buyer. The federal Fair Housing Act prohibits discrimination in housing, including in sales and mortgage lending, based on race, color, religion, sex, national origin, disability or familial status.