7 tips for finding the perfect house

I am lucky in that for most of my marriage I haven’t had to pay a rent or mortgage. But the time has come, and the time is now, for us to buy a home. It’s exciting, and exhausting and discouraging! Tomorrow we are closing on our first home. The first house we made an offer on the seller was not being cooperative. The second one we got outbid on. This home, now that we will ACTUALLY get it (almost 50 houses later), will be our dream house; our forever home. Big enough AND completely rehabbed; it’s exactly what we want.

One thing we’ve learned about the market in Chicago is this: there are new houses popping up on the market all the time (popping a bit slower since the weather has turned frigid), but there are also plenty of buyers, so if you find a house that has everything you want, jump on it and don’t low-ball on your offer. Because you WILL get outbid.

Here are my tips from my experience over the last few months of seeing almost fifty homes:

1. Don’t buy a house in a flood zone

Not because of the hassle of getting flooded, but because you’re going to be paying so much in flood insurance. I’m not sure if every state is the same, but Illinois does require you buy insurance. Ask your agent. One house we looked at I calculated we would’ve spent about 50,000 in flood insurance over the life of the loan. Not. Worth. It.

2. Decide if you’re willing to buy a cheap, shabby house and update it yourselfThis is the most cost-effective route. The house that we are closing on is completely updated, and we love it. But you could always buy an ugly home if it’s big enough and fits your requirements, and pay to get it renovated. If you’re not interested in this, decide what you really want. A new kitchen? New bathrooms? Remember that walls are easy and quick to paint, so try to envision them with the paint you want.

3. Calculate distance to your regular commitments

When comparing houses, you have to take your commute into account. The house we’re buying now is about 20 minutes away from my husband’s work, and 40 minutes away from mine. We knew that houses in this area are cheaper than ones closer to our respective jobs, so we carefully weighed our choices and decided that this house was worth it.

4. Be patient, if you have the luxury

Evaluate the market. If you have enough fresh choices that keep emerging, be picky! I definitely understand that looking at houses is exhausting. Make a list of the ones you’re interested in and prioritize. If you need to take a break then do so, but buying a house is a big deal. You have to KNOW it’s the right one.

Sometimes you get a vibe about a house. You’re not crazy! Listen to your gut.

There’s been times that a house checked off everything and I was like, nope! Not the one.

5. Budget for closing costs AND making the repairs to bring the house up to codeTalk to your agent and your banker. You know you’re gonna be broke when this is over, but you don’t want any surprises! My husband and I decided we wanted to ask for a credit towards closing costs as part of our offer, instead of using money we had in the bank, so we wouldn’t be completely broke, but could still put 10% down to get that lowered PMI rate.

6. Choose what you can and can’t live without.

When you turn down houses that you’ve seen, what are some of the features that led you to make that choice? Make sure you don’t decide to see houses with those same features. If you really want a house with central air, don’t consider those without. You may think that you’re okay with a house that doesn’t have a garage or street parking, but if you repeatedly turn down houses without those features you should add them to your list.

7. Think outside the box. If the home has a full basement, it’s inexpensive to add a room downstairs

If you’re willing to contract the work out, that is. You can turn a cheaper home into your dream work just by putting up some walls, flooring, and minimal electrical work.

If you’re buying a home with your spouse, make sure that you guys are on the same page about everything so you don’t waste your time while you’re looking at houses. It’s a lot of work, but it sure beats paying rent!