Ryan's Journal

"My life amounts to no more than one drop in a limitless ocean. Yet what is any ocean, but a multitude of drops?" — David Mitchell

Real Estate for Dummies

Posted from Culver City, California at 9:08 am, February 12th, 2012

Things I think I’ve learned while buying my first house:

  • Spend time looking. It took several months for us to get an understanding of what neighborhoods we liked and what prices were fair. Being able to know where to look, and knowing what kind of house you can get for a specific price in each neighborhood is a huge advantage.
  • Use the internet. We got on Redfin early on, but during the first few months would also occasionally just follow signs to open houses. The latter approach isn’t productive – filter the houses before you go out.
  • Know the budget. We set a range, and only considered houses that were at the top of the range when we were really excited about them. This approach helped us categorize our interest – we automatically eliminated anything too expensive, and had to justify pricier homes by asking what feature of the house made it worth the extra price.
  • Be ready to move fast. We put an offer on our new house the day after the open house, and even moving that quickly we were competing with two other offers. Get pre-qualified, and if you find something you like jump on it.
  • Follow up. Audrey did a lot of follow-up with the agents, the escrow company, and others once we’d put down an offer, and it made a big difference – with different companies involved and a million things to do there are going to be issues that get missed, and it’s far easier to fix a problem earlier than doing so after it becomes a crisis.
  • Expect problems. With many documents we’ve had to send them, and then re-send them, and then send them again. Apparently with so many files to keep track of things get lost, don’t go to the right person, or need clarification, so expect to do a lot of things twice.
  • Title insurance is a scam. Just sayin’. Any insurance that pays out just 4.3% in claims of what it takes in as premiums is bogus, but the mortgage company won’t let you buy a house without it.

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