HOME BUYER’S GUIDE G o o d t o k n o w.®
3801 E. 82nd St, Indianapolis, IN 46240 | Phone: (800) 747-7797 | Email: clientservices@bhhsin.com Š2019 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.Ž Equal Housing Opportunity.
UPSIZING WISELY: 13 QUESTIONS TO ASK WHEN BUYING A BIGGER HOME IN INDIANA Life keeps us on our toes, doesn’t it? People grow and change, circumstances shift, and our needs and desires vary, too. Life changes like these affect all of us at different stages— and they can have a big impact on what you need and want out of a home. A house that worked great for you once, may no longer be your ideal. Living in a residence that’s not conducive to your daily needs and goals can be difficult. You can make it work for awhile, but eventually the frustration builds up. Buying a bigger home that achieves what you’re looking for can bring a huge sigh of relief. A right-sized home allows for breathing room, growth, and unexpected life changes. The flexibility a larger home affords can be super helpful as your needs change or life throws curveballs your way. (twins, anyone?) Maybe you’re expecting a child or bringing aging parents to live with you. Or perhaps you need a home office space to achieve your dreams or just more room for storage. Or maybe the thought of a full-on remodel just makes you cringe. Whatever the reason, buying a larger house can be a smart move for your family’s sanity and your future. And it’s important to go into the homebuying process armed with the right information and advocate. That’s where we come in. Let’s start with 13 questions and answers to help you find your next, right-sized dream home.
1
01. HOW DO I KNOW IT’S TIME TO BUY A BIGGER HOUSE? At the end of the day, we want our home to feel like a haven. A place to put our feet up and let the day’s cares float away. But our homes also have to serve us functionally—to be equipped with the right layout, amount of space, and features to meet our daily needs, as well as our dreams and goals. Maybe your circumstances have changed and your current home doesn’t fit the bill. Or perhaps you are anticipating future life shifts or needs. No matter the cause, here are some key indicators that it might be time for you to go bigger.
Everyone’s feeling cramped.
There’s no room for guests.
It’s no fun to live in a home where people feel crowded or a lack of privacy. Breathing room is important to keep family dynamics on track and sanity intact.
Turning away overnight guests due to a lack of space can be really frustrating, and sometimes even embarrassing. A bigger house allows for people to stay over easily with ready-to-use guest rooms and the amenities guests need to feel comfortable and cared for.
You need room to grow. Maybe you plan to add a family member or two, or even some furry friends, or perhaps aging parents or grandkids need a place to stay. Whatever the case, if the number of occupants is likely to expand, a bigger house will alleviate crowding and frustration.
Entertaining feels impossible. If you love having friends and family over, but your current space makes it tricky, upsizing can be a great idea. Having larger gathering spaces, amenities like a pool or bar area, and a yard big enough for recreation can give your social life a major boost.
You want flexibility. Maybe you’re toying with starting a new hobby or side hustle, renting out part of your home, or perhaps you just want to be able to create new spaces on a whim. Larger homes allow for flexibility and growth as your life goals and priorities change.
Desired features are missing. Sometimes smaller homes come without the extras you’re looking for, like massive walk-in closets, yards for entertaining, or big kitchen islands. Upgrading to a larger residence often means gaining the amenities you’ve been wanting.
A home office would help. Whether you’re running your own business, working remotely, or starting a side gig, having a home office means a quiet, comfortable place to accomplish your goals. Buying a home with office space can boost both your productivity and your income.
You need to move anyway. If a change in lifestyle, school or work locations, or other factors necessitate a move, it makes sense to buy a home big enough to meet all of your present and near-future needs.
2
SECTION HEADER
02. WHAT DO I ACTUALLY NEED IN A BIGGER HOME? If you’re contemplating a home upgrade, make sure you go into it knowing exactly what you’re looking for. Spend some time dreaming about, discussing, and detailing your actual needs and family goals around home ownership. Write down any non-negotiables and walk through the following questions together: • What specific areas of our home need to be larger than they currently are?
• What are some of our family routines and priorities that impact what we need in a home?
• What impending or possible family changes down the road might affect our needs?
• Are we looking to significantly increase lot size or just the home’s square footage?
• Do we need additional rooms or just more space?
• What features are we looking for in a new home?
• Do we need increased square footage or simply a more functional layout?
• What’s a responsible budget for an upgrade?
03. WHAT DO I NEED TO LOOK FOR IN THE RIGHT HOME? If you’re upsizing your home, it’s critical to make sure you choose the right one. In the excitement and busyness of househunting, it’s common to miss important details. Here are some easily overlooked factors that are important to look for:
Layout
Finishes
Choose a floor plan that works for you. Be sure to look at the number and location of rooms, the level of privacy afforded, and see if the space will allow for your main lifestyle needs and priorities.
Inspect finishes for quality and durability; choose homes with timeless instead of trendy styles to avoid remodel costs arising sooner rather than later.
Entertaining
Property
If hosting friends and family for meals and fun matters to you, be sure to choose a home with ample space for both indoor and outdoor gatherings. Look for an open floor plan where guests can mingle easily.
What kind of view does the house have? How much privacy is there from neighbors? Is the yard suitable for your intended uses? Do the neighbors’ homes look well-kept?
Location People tend to pay close attention to the lot and yard of a prospective home, but don’t forget to expand your focus. Look for details beyond the home like traffic and noise, area developments, quality and style of neighborhood, nearby amenities and schools, proximity to places you frequent, etc.
3
SECTION HEADER
04. SHOULD I JUST REMODEL MY EXISTING HOME INSTEAD? Remodeling is an option to consider if you’re wanting to upgrade your living quarters. But sometimes space limitations make desired remodels nearly impossible, and other times it’s just a hassle people don’t want to deal with. Either way, here are some things to keep in mind if you’re considering a remodel:
Time and money. While remodeling can be a cost-effective way to upgrade your home, it can also take way more time and funding than you might expect. It’s easy for projects to drag on and budgets to be blown.
Construction headaches—literally. Going about your day to the sound of power tools isn’t exactly relaxing. Remodel projects can be exceedingly noisy for large chunks of time, disrupting your day, and possibly irritating your neighbors.
Be prepared for a mess. From demolition to drywall to final touches, remodel projects are not tidy undertakings. Expect there to be lots of dust, material remnants strewn about, and dirt from all the comings and goings.
Research, paperwork, and permits...oh, my! Simply finding the right contractors can be a huge chore. Usually there is lots of research to be done, referrals to seek, walkthroughs to schedule, and estimates to peruse. In addition to wading through quotes, project plans, and permits come into play. Most municipalities require homeowners to secure building permits prior to undertaking any renovations.
The sky is not the limit. You’re confined by the existing structure, space, and lot of your current home, minimizing your options for remodeling. Buying or building a bigger home means you get to choose a house with exactly what you’re looking for.
Expect the unexpected. Even the best contractors plan for surprises in large remodel projects. Small hiccups are no big deal, but unexpected findings like water or mold damage, pest problems (ewww!), or poorly executed prior work can derail timeline and budget in a heartbeat.
Life interrupted. In addition to the noise and mess, renovation projects can literally make parts (or all) of your home completely unusable during the process. Also, it’s common for water, gas, and/or electricity to be shut off for varying lengths of time as different work is done. These are sometimes just minor inconveniences, and other times complete disruptions, depending on the scope, timing, and nature of the project.
4
SECTION HEADER
05. WHAT SHOULD I LOOK FOR AS FAR AS LOCATION? We’ve all heard the real estate mantra that says, “location, location, location.” No matter how much you fall in love with a home, if the location isn’t desirable, you’ll want to think twice before making the purchase. You can make changes to the interior and exterior of a home as you like, but you’re stuck with where it resides. And this can have a tremendous impact on any resale value down the road.
Here are some specific location-based features to examine closely: • Neighboring homes • Privacy • Street/drive • Traffic • Walkability • School district • Commuting distance to work, schools, etc. • Property taxes • Local utility rates • HOA/neighborhood covenants and fees • Nearby amenities • Curb appeal • Yard/lot • Access • Safety and suitability for kids, pets, and others • Area crime statistics • Landscaping • Noise levels • Appreciation and resale potential
5
SECTION HEADER
06. HOW DO I DECIDE BETWEEN ONE HOME AND ANOTHER? When you compare homes, so many factors come into play. And it can be overwhelming to decide which one is right for you and your family. Create a wish list detailing aspects and features you are hoping to find in your next home. As you attend showings, take plenty of notes, pictures, and even video footage to help aid your memory and final decision-making. After you’ve seen a few, it’s easy for them to start blending together in your mind. Good documentation makes the process of choosing the right one much easier when the time comes. • Address
• Amount of natural light
• Price
• Type of floor plan
• City/town
• Design style (traditional, Tudor, cottage, modern, Victorian, colonial, farmhouse, European, Craftsman, etc.)
• Square footage • Home layout (ranch or multilevel) • Number of bedrooms
• Move-in ready or upgrades needed
• Number of bathrooms
• Roof age and condition
• Lot size
• HVAC details
• Garage type
• Closets and storage options
• Appliances included (plus age and condition) • Neighborhood/area type (urban, rural, suburb, retirement, historic, golf course, etc.) • Commuting distance • Amenities you want/like (special features like pools, soaking tubs, basements, or playsets) • Any cons (features you don’t love, obvious existing problems, or red flags)
• Yard/landscaping features
07. WHEN’S THE BEST TIME TO BUY A BIGGER HOUSE? There is no perfect time to buy a home, because it truly depends on a variety of factors. But you can maximize your timing and budget by looking at a few important things:
Area pricing
Your financial situation
Your agent can provide comps and look at historical sale data. Buying your home when prices are down is obviously ideal.
You’ll want to make sure you’re ready to bear the costs of a larger home, including any necessary down payment funds and closing costs.
Interest rates
Your current personal needs
Watching the interest rates can allow you to snag a home when rates are low, keeping your mortgage payments and long-term interest costs down.
Regardless of what the market is doing, you have to take your personal situation into account. If you and your family are at your wits’ end living in your too-small home, the time may be right to move.
Think seasonally Summer tends to be the most popular time of year to move, so prices are often higher during this time. Buying off-season can stretch your dollars.
The future If you are confident that your family’s future needs require a larger home, starting to look now before you’re feeling overcrowded and stressed makes sense.
6
08. HOW DO I MAKE A BIGGER HOME AN INVESTMENT? Go into your search with resale value in mind. Upsizing can actually pay off in the long run if you are strategic about your purchase. Conduct your own research and talk to your agent about current home-buying trends and present-day buyer preferences. And of course, location is everything when it comes to resale. Pay close attention to the area you’re buying in and look for location perks like school districts, amenities, low taxes, neighborhood upkeep, and other desirable features. Look to your agent for advice and expertise when it comes to resale. They should be able to offer you a wealth of information and guidance.
09. ARE THERE WAYS TO BUY A BIGGER HOUSE ON A SMALLER BUDGET? Moving into a larger residence might be less expensive than you think. A great agent can help you find a gem of a home that fits your financial situation. Homes that have been on the market for awhile can mean super motivated sellers. This is a great way to snag a house you love at a discounted price. Or sometimes buying a house that needs a few simple cosmetic upgrades can save you quite a bit of money. A coat of paint here and fixture swap there can be easy and cheap undertakings. Another budget-friendly option is to choose a location that’s less in demand, but still close to your most-visited parts of town. Sometimes buying a home just a few miles outside of a popular area can make all the difference. Lastly, buying around the holidays or during other off-peak times of year can stretch your dollar, too.
7
SECTION HEADER
10. WHY SHOULD I WORK WITH AN AGENT? With all of the online tools and info at our fingertips, it can be tempting to consider buying a home without the aid of an agent. After all, why spend money if you don’t have to? But honestly, working with an experienced agent can end up saving you significant cash—and tons of hassle—in the long run. Here are just a few ways a real estate professional can make the whole process so much smoother and end with great results:
They will tirelessly advocate for you
Pricing expertise
Let’s face it: a seller and their agent are looking out for their own best interests. If you go into this without someone on your side, you’re at an instant disadvantage. A great agent will ruthlessly advocate for you and your needs—and they know how to do it like a pro.
No one wants to be put through the ringer financially. A real estate agent who knows the market and location inside and out can make sure you are paying a fair price for the home you want.
Paperwork and contract headaches
An agent will go to bat for you and ruthlessly negotiate until you get the very best deal on your home. They know the nuances of this give-andtake dance, and will ensure an optimal outcome.
From appraisals to inspection reports to disclosures, offers, and counteroffers, agents are stellar at combing through paperwork and looking for red flags, omissions, and opportunities.
They know the ropes Because they know the ins and outs of the process, they can find loopholes, shortcuts, and insider info in a snap. They can also keep an eye out for common pitfalls and traps that tend to snafu buyers. This is not their first rodeo, and you can leverage their experience and time for your benefit.
Emotional distance As we all know, our emotions can cloud our judgment in a second and make good decision-making tricky. Having an agent involved means a calm and level headed third-party to give you objective expertise and sound advice.
Fierce negotiation skills
They know what sellers are looking for Sellers can be skeptical and picky when it comes to buyers, so it’s essential to know how to stand out. Your agent should know how to demonstrate that you’re a serious and trustworthy buyer.
Off-market and neighborhood knowledge When it comes to the inside scoop in real estate, the pros have ways of knowing what’s shaking and when. From off-market sales to neighborhood drama and resale value, they can fill you in and prevent buyer’s remorse.
8
SECTION HEADER
11. WHAT SHOULD I LOOK FOR IN AN AGENT? Finding the right agent can make or break your experience transitioning into a larger home. Look for someone who has experience under their belt and can help you: • Find the home that meets your needs and fits your budget • Wade through your options and make the best choice • Rule out homes that might be problematic down the road • Aggressively negotiate to get the deal you deserve • Price and sell your current home
12. WHAT ARE SELLERS LOOKING FOR THESE DAYS? It’s important to know how to be taken seriously as a buyer. If a seller suspects you aren’t really interested or are inflexible, they’ll move on to the next potential buyer. Your agent can help you attract seller interest by taking a number of steps, including: • Being as collaborative and undemanding as possible • Presenting you as a serious buyer, but not over-eager or desperate • Ensuring you appear flexible and willing to compromise • Helping you craft an offer that puts you in a strong negotiating position • Negotiating the process professionally but firmly • Making sure you are pre-approved for a loan • Communicating responsively and openly • Respecting the seller’s priorities
9
SECTION HEADER
13. WHAT SHOULD I LOOK FOR AND DO DURING A FINAL SHOWING/WALKTHROUGH? In addition to taking great notes and capturing photos and video, there are some specific things you can and should do during a home tour, especially if you’re getting close to making a decision. It might feel weird to be opening closets and turning on faucets in a stranger’s house, but a little investigating can save you major headaches. The last thing you want to do is buy a new home with unforeseen issues. So put the awkwardness aside, and get ready to do some smart exploring. • Run water in all sinks and tubs. Look for drips and draining issues. • Look for any signs of water damage and/or leaks. Especially check around fixtures and under sinks. • Flush toilets. • Open all closets and examine storage areas for issues. • Keep your eye out for damage caused by pests or pets. • Turn on exhaust fans. • Feel for spongy or uneven flooring.
• Be aware of any funky smells or sounds. • Test all light fixtures and switches. • Open and close the garage door. • Test appliances. • Look for ceiling discoloration or bulging.
READY TO START LOOKING FOR A HOME THAT BETTER FITS YOUR FAMILY’S NEEDS? The agents of Berkshire Hathaway HomeServices Indiana Realty are local experts who know your desired community and market inside and out. With experience under our belts and access to a trusted network and tools, we’re able to help you find your ideal home and seal the best deal. We’re in it with you until the very end, aggressively pursuing your goals, not ours, every step of the way. We’ve come to be wellknown for our integrity, innovation, and high standards. And we’d be honored to come alongside you as you start a new chapter in your next home.
• Open and close doors. • Run the garbage disposal. • Test the outside water spigots.
home.bhhsinrealty.com (866) 628-5039
• Lift up rugs and wall decor (carefully!) to check for hidden damage.
10
3801 E. 82nd St, Indianapolis, IN 46240 (800) 747-7797 | berkshirehathawayhs.com/Indiana-Realty-IN302