How do I buy a House?
NST 24/5/2005

Be a smart consumer. For a first- timer, purchasing a new home is one of the most perplexed and expensive purchases one will ever make. However with thoughtful consideration in mind, you can be sure that you can get your money's worth.

LOCATION, LOCATION, LOCATION!
It's a known fact that location is one of the biggest factors in setting the price of a house. Right after you come across your ideal home, try to access its surroundings. Ask yourself these questions;

 How far will you have to commute? eg from workplace, children's school · What is the traffic like?
What nearby public facilities are available? Eg hospital, school, children's playground · How far is it from the hospital/police station/fire station?

CHECKING OUT THE CRIB

Examine thoroughly the inside and outside condition of the house. In-house aspects that you should look at involve ceiling, flooring, wall, ventilation and plumbing. You should also consider the amount
of sufficient yet comfy space for the whole family and household furniture. As for the outside condition, say for example, in a hillside area, you might want a soil stability inspection. Also, you should have the home inspected to determine if it is structurally sound, a pest control inspection to see if the house has been infected by termites or dry rot, and a natural hazards inspection to see if the home is located in an area subject to fire, earthquakes or flooding. It is advisable to have all these aspects inspected by trained specialists.

GOOD REPRESENTATION WITH TAXATION

Get in touch with an experienced local real estate agent. They can assist you in finding a home that meets your particular needs. Your real estate agent will also assist you in negotiating the price, learning about the community, obtaining a loan, inspecting the home, and in closing the deal. In some instances, a real estate agent can represent both the buyer and the seller. This is referred to as a dual agency. This must be disclosed to you before you make an offer. It is advised that you proceed carefully in this situation, since your agent will be working for both the seller and you at the same time.

HANDING OUT THE GREEN

Once you have found the home of your choice and have determined how much you are willing to pay, you need to make a deposit (called earnest money) to show the seller that you are serious about buying the house. The deposit is considered a down payment on the price of the home. In some instances you may have to increase your deposit or, increase your offer, especially if there are multiple offers on the home. Before you make a written offer, know exactly what you are buying and what the costs will be after you own it. For example, in addition to the monthly principal and interest payment that you will have to finance the purchase of your home, you will need to budget for utility bills, property taxes, insurance and maintenance costs. If you buy a home that has a homeowner's association, you will also have to pay association fees. Some homes have special assessments in addition to the regular property taxes. Make sure that you ask the seller for copies of the past years"
bills for these services, and that you inquire as to whether there are any assessments scheduled to be placed on the property in the future. It also worthwhile to note that most home loans are made by financial institution such as banks savings and loan associations, and credit unions.Other sources of loans are Insurance companies, mortgage bankers, finance lenders, mortgage loan brokers, pension funds and investment trusts. Lenders charge different fees and offer different interest rates so it pays to shop around. Your agent will be able to recommend lenders in your area.

Remember, buying a house is a huge investment. Give it a deep thought and it would help that you get in touch with The National House Buyers Association (HBA) which is a voluntary non-profit, non-governmental and non-political organization. Check out its website at www.hba.org.mypr email info@hba.org.my.