Besides checking the general boxes like getting a home inspection, pest control and such there are a few other practical things that might be worth looking into before nailing down the deal. These might be considered over the top for some people, but with my commercial real estate background, it really got me thinking. Businesses and large corporations do spend a lot of time and money to make sure their investment is right and will generate income. They spend months, if not years making these decisions. Completing due diligence, performing market research, putting together decks to get approval from the board, and much more goes into securing the site.
Now, I know buying a house is not as big of an investment as purchasing 100s of acres for industrial development, or opening a new store. However, either way, home buyers should have the right to this information and be more critical when selecting a home and making a good investment. After all its an investment and we should treat it that way.
Here are a couple of things to be critical about when selecting your new home:
Open and close the windows and doors in the house – Can you open the window properly? Does the door close all the way? If the house is settling in or moving in any direction. It can be a sign of structural imperfection and you probably want to have a specialist take a look at that if you are experiencing trouble with opening and closing the doors and windows. Its cheaper to get a more in depth understanding of it than dealing with it after sealing the deal.
Distance and drive time to everyday destinations – Yes this is another obvious one but to be frank, a lot of people tend to be rather too optimistic and convince themselves that the drive isn’t too far, only to realize after a few months of making the decision its costing them time and money. Time is valuable, that’s a fact. The faster you can get to and from the locations you need to get to the more happy and less stressed you will end up being. So please make a list of all the go to places, schools, restaurants, gyms, activities, parks and nature, and write down distance in miles and drive time. Plan out a regular day and use maps/google maps to get a sense of what a day could look like and if its worth the driving.
City analysis – Understanding car traffic in the area, look into the city’s economic development resources and see what the cities general offerings are. If you have kids or if you want to live in a more quiet area, knowing what car traffic is in the area might help you out. Majority of states, if not all have online resources where you can see daily car traffic. These are provided by the Department of Transportation for each state.
The Economic Development in a city is a great resource to get a understanding of what is currently happening in the city and what the future city plans are. This is probably something your broker won’t tell you too much about since they might be held liable if they tell you there will be a park behind your house and then it never ends up happening. Do the research yourself. Get a understanding what the land around the house is zoned for, it might be zoned for industrial or a business district rather than being a reservation.
If you are looking for a house which is not in a HOA, and the neighborhood does not have any appearance standards to follow, you might want to check out the county website and get an understanding who owns the homes around you. If its an entity rather than and individuals name you can put your bets on a rental property. Not saying one thing or the other here, but overall renters tend to be more leisurely about the exterior upkeeping of the house.
Geographical considerations – Analyze the location of the house and its yard. Is the house located in a valley, or on top of a rolling hill? If it rains what direction does the water flows? Certainly you want to make sure the water runs away from the house as much as possible, but understanding if there are any wetlands or if the house is in a floodplain will help you out to make a better decision. FEMA and National wetland directory have online free resources where you can double check these items. If the house ends up being in a floodplain, it will be important to make sure you have the correct insurance to cover any potential damages it may cause as well as have a financial understanding of the undertaking.
There are many more practical tips to consider when selecting a new home and making a real estate investment. Whether its geographical, locational, developments its always worth taking a quick peak at these items before signing the papers. The web is filled with unlimited free resources, but you definitely want to stick around to learn more about how you can make a better, long term investment.
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