Lessons I Learned When I Bought My House

My daughter is house shopping. She's still a little way off from moving in, but they are looking. When we spoke on the phone the other day she commented that she definitely didn't want a "fixer upper" because it didn't fit their personality. I'm so glad she recognized this trait in herself and her husband. After our conversation, I started reminiscing about when we bought our house 21 years ago; and I remember some of the mistakes we made. We were so naive. I want to share a few of the lessons we learned and maybe it will save my daughter and others some hard knocks.

• First of all, be realistic about what you can afford. Your monthly payment is just the beginning. There will be taxes and insurance to pay. There will also be expenses for maintenance. Unfortunately the roof will wear out, the water heater or furnace will go out, the fence may fall down or your sewer may back up. If you are spending every dollar available for your house payment and other daily costs of living, you may end up unable to repair those things that wear out.
• Don't use the same realtor as the seller. They are likely to offer to work for a lower fee, but the bottom line is they'll still make more money if both you and the seller are paying them a fee. One of the reasons you want a good realtor is because they will keep your  best interests at heart. If you share the realtor, they will do whatever it takes to make the sale.
• If you are a first time home buyer, either get your own appraisal done or have an experienced home buyer walk through with you. Even though the appraisal is usually required by law, they may not be as thorough as your own appraiser. We ended up having problems with the plumbing in our bathtub that I am still dealing with to this day. I never thought to see if the drains worked well or if the pipes leaked. Go ahead and climb on the roof. Turn the heater on in the middle of summer or the Air Conditioner on in winter.
• Don't borrow money for your down payment. If you can't afford a down payment, you can't afford a house! I maxed out a few credit cards AND we borrowed money from my in-laws. Within a short time my husband was unemployed and we ended up working with a credit counselor to pay off most of our credit card debt. We opted not to declare bankruptcy, but we still ruined our credit for seven years. (They don't always tell you this will happen when you go for credit counseling.) Seven years is a long time when you want to buy a car or furniture. Oh yeah, we didn't pay my in-laws back for a long time and that debt really caused some friction in our relationships.
• Don't buy a house with the thought that you will move in a few years. In fact, buy your house with the intention of living there forever. You never know what hardships or circumstances may arise to prevent you from moving. We bought our house with the intention of selling and moving to the country in 5 years. We heard that we would build enough equity in our house to get a good down payment for a larger property in the country. That was a BIG lie. So don't buy a 2 bedroom if you may someday need a 3 bedroom or 4 bedroom house. Don't get stuck with a tiny house when you know you need a family room, office, hobby room, etc. If you enjoy entertaining or hosting family gatherings, keep in mind the need for space.
• Check out the neighborhood during different times of the day. Also do a drive through on the weekend. A neighborhood that seems quiet during the week may be really noisy on weekends. This also gives you the opportunity to check out the traffic, pets running loose, children, etc. Do NOT take the seller's word that a prospective house is in an ideal neighborhood. Maybe they really want out. Don't assume they are honest. If you get an opportunity to meet the neighbors, that's even better. First impressions are very important.
• Make sure you like the landscaping. If the yard is not landscaped, plan on spending 10% of the cost of the house in laying out your yard. If you don't like to do your own yard work, plan on the cost of hiring a gardener or get a landscape with very low maintenance. If you enjoy gardening, then make sure you have plenty of room to accommodate your hobby. Remember old shrubs and trees can be removed, but it is expensive. Paving and concrete is even harder to remove. If you enjoy BBQing and entertaining, look for a place with a patio, etc. Also ask yourself if the yard is large enough for pets/children if you plan to have either.
• There are some items that can be used for bargaining such as paint and flooring. Point out to the seller if the carpet needs to be replaced or the walls need new paint. Ask them to lower the asking price based on these cosmetic items. Be sure to put enough money back to cover the costs of paint, carpet, etc.
• This leads to the next point - allow yourself time BEFORE you move in to make any changes such as painting and carpeting. It is much easier to take care of these chores when you don't have to move furniture around or sleep in a house that smells like paint. Our house closed on the same weekend our rent ran out. We had to move immediately.
• Keep in mind the cost of appliances, furniture, window coverings, etc. The house may not come with all the appliances such as a washer and dryer.  (Make sure the built-in appliances such as the stove/oven and dishwasher do work.) Also, your furniture may not suit your new living space. The cost of window coverings/treatments can also add up. Windows vary in size so much that the curtains you currently own probably won't work for your new home.

I'm sure there are other things I haven't thought of, but these are some of the main points I can speak about from experience. I'm not trying to take the joy out of home ownership. It's just keeps you from being disappointed if you face the facts up front.