Nolo's Essential Guide to Buying Your First Home (41 page)

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Likely water flow.
Improper grading leads to poor drainage. It’s a common complaint in new developments and difficult to fix, so avoid lots located at the neighborhood low spot or the bottom of a hill. A lot on a creek may sound nice but end up flooded by next year’s “100-year storm.” Also look for concrete-lined drain channels in hillsides above your lot, which are often poorly maintained, leading to flooding or even a landslide.

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Roadways.
If your house will be next to a major roadway, expect extra noise and traffic.

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Services.
While it’s convenient to have services close by, being immediately adjacent to a grocery store, fire station, or school can raise levels of traffic, litter, and noise.

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Lot size and position of neighbor’s houses.
How big is the lot in relation to the size of your house-to-be? In many new communities, homes are built so tightly together that owners can hear their neighbors’ television or see in their windows.

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Location.
You’ll pay more for a house that sits on a lakefront and less for one that backs up against the freeway. The more desirable the location, the less negotiable the price.

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View.
If a view is an important asset on your lot, find out whether you have a right to prevent downhill neighbors from blocking it with new homes, additions, or trees. Many trees grow fast enough to block a scenic vista within five to ten years.

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Remaining undeveloped land.
If there’s a big, open field nearby, find out from the local zoning or planning department what it’s zoned for and what kind of development is planned. Unless it’s a park, you can be sure that something will be built there eventually.

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What the model home includes.
Some contain the upgrades, so that buyers mistakenly think that’s what the final house will look like. Adviser Mark Nash says, “Ask how much the house you’re looking at would cost with everything you see in it.” Others contain cheap and tacky basics, to steer you toward the upgrades. Either way, look closely at the quality of woodwork, flooring, appliances, and more; decide which you’re willing to pay to upgrade; and get the developer’s promises in writing.

Don’t Fall for the Hype!

 

Watch out for these developer sales tactics, many designed to encourage an impulse buy on your first visit:

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The luxury tour.
You may be whisked around lovely house models by an attractive professional, maybe even with tasty treats or drinks along the way.

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The “now or never.”
You may be told that a building or development is almost sold out—or is sold out. Whaddya know, you receive a call a few days later saying that a deal has fallen through, and a unit or house is now available.

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The moment of silence.
If you’re buying with someone else and find yourselves alone in an office, resist the temptation to do what the seller wants: Talk about what you just saw, and whether it’s a good idea to buy it right that minute.

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The “today and today only.”
“Today only, upgraded granite countertops,” or “we’ll pay your closing costs.” We can’t say it’s not true, but it’s a favorite sales tactic.

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The freebies.
As if buying a house weren’t enough, some developers are throwing in motorbikes, cruise trips, and flatscreen TVs. Try to remember that these are minor extras compared to what you’ll be paying to buy the property.

 

 

 

TIP

 

It’s possible to negotiate for free upgrades, at least in slower markets.
Because it doesn’t cost the developer nearly as much to make the upgrades as you’d probably be charged, they use them as incentives.

 

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Your Dream List.
If you’d never thought about needing a wood-burning fireplace or an outdoor barbecue, why add them now?

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The retail cost of possible upgrades.
No need to pay a developer more to add high-quality materials than you’d pay for them yourself. Double check the cost of big-ticket items like cabinetry or floor coverings at your local home improvement store. Then negotiate with the developer to bring the price down, or plan to hire a local contractor for upgrades.

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What upgrades will add resale value.
If you ever sell your home, the less flashy, more practical upgrades will attract the most buyers. For example, swimming pools don’t always add value to a house, while extra office or storage space will. Other practical, valuable upgrades include more electrical outlets, a fenced-in backyard, and wiring for high-speed Internet.

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The tax impact of your house size and upgrades.
You may have seen a property tax estimate in the seller’s written materials. If the house hasn’t yet been built and assessed, however, that figure means nothing more than the value of the land. Call your local tax board for information.

• read all the paperwork describing its governance and current situation, and

• ask questions of the sellers, the neighbors, and the governing body.