Fannie Mae Foundation: How to Buy a Home

Keeping records of homes you visit

1. Discuss why it is important to visit a house you are serious about more than once. It might be a good idea to drive by the house at different times, including at night. Another way to find out about the neighborhood is to talk with neighbors.

2. Ask more advanced students to create a checklist of what to observe in a house based on what they have read on page 42.

3. Point out that many people look for houses for as long as six months to a year before selecting one to buy.

4. Ask students to imagine what kind of mistakes people might make by selecting a house too quickly.

Going further
1. Ask for pairs of volunteers who might be willing to go to open houses over the weekend. Have the volunteers look in the newspaper for listings of open houses in their neighborhoods. Make a note of the times and locations. Ideally, at least two pairs of students would each visit two houses.

2. Instruct one pair of volunteers to observe what they see on their visit but not to take written notes. Ask the second group to bring a notebook and make notes of what they see.

3. At the next class session, ask the volunteers to report on their home visits. Was it hard for the group that didn’t take notes to remember the details? What about the group that took notes? Can you imagine how it would be if they visited ten or more houses? Why is it important to keep written records?

Unit 2 : Lesson 1: Deciding what you want

Looking further

Keeping records of homes you visit

Ramirez family visiting open house After you have looked at a few homes, it may become difficult to remember
the special features of each one. For this reason, it is important to keep careful written records about each house you see. Taking pictures of the houses you visit can also be helpful in addition to your notes. Here are a few things you may want to look for.

The neighborhood

The amount you are willing to pay for a house must take into account the neighborhood in which it is located. Is the house close to public transportation? To your workplace? To schools? To shopping? To recreational facilities? Are there many houses for sale in the area? If so, you may want to find out why. Is there going to be a large shopping area or other development built nearby?

Physical details

Look at the outside of the house. Note its size, the condition of the house, the size of the lot, and the landscaping. Inside, you may want to draw a floor plan of the house with the number of bedrooms, bathrooms, and other rooms. Check to see if there is enough storage space. What built-in appliances are there? Are you comfortable with the size and layout of the kitchen? Are there signs that the basement floods or the roof leaks?

Construction details

The quality of the building materials, the craftsmanship, and the condition of the house are also important. How well insulated is the house? Do the windows shut tightly so you don’t lose heat? Is the roof in good condition? Does the house appear to be well maintained?

Major systems

It’s important to make sure the plumbing, heating, cooling, and electrical systems are all in good working order. A home inspection (described in the next lesson) will help you learn if the house needs to be rewired or replumbed or if a new furnace is needed. You should ask what kind of fuel is used and about how much it costs a year. You should also ask about the cost of other monthly utilities.

Financing

Except for houses that are “for sale by owner,” when a house goes on the market, a description of it is added to a computerized list called the Multiple Listing Service (MLS). Most real estate agents can get you a copy of the MLS list. (You can even use a computer to find MLS lists on the Internet.) This list will include many features of the house and can be an important addition to your records. Sometimes, the MLS list will include the mortgage balance and whether it is possible to assume (or take over) the existing mortgage. If the mortgage is at a low interest rate, being able to assume the mortgage could make the home more affordable.

It’s a good idea to plan to spend some time looking at homes. A recent survey found that, on the average, home buyers look at 15 homes before deciding on one. Shopping around will give you a better idea of what is available and the current market price for the kind of home you want. This will help you to know whether the price is high or low and what kind of offer you should make on a home. When you find a home that you like in your price range, it is important to take time to make a final decision. Even if the home seems “perfect” you should go back for a second look. Visit the neighborhood at different times of the day. Try to talk with people who live in the neighborhood. You should never sign any papers or put money down on a house without careful consideration.

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