Checking Out Your Real Estate Agent
While I found little that Nolo missed, I discovered a few things that were new to me. For example, there is a Web site that lets consumers search for information on an agent. The Association of Real Estate License Law Officials provides information such as the agent's office of employment, when the agent was licensed and the agent's license number.
Just for fun, I entered my name to see what popped up. There aren't too many Weintraubs in real estate. Sure enough, it correctly disclosed my DRE license number and membership in the National Association of Realtors. However, the site picked up only my last license registration, so it was inaccurate concerning the original date of my license inception. But you can find any agent in the country.
Seller's Disclosures and Material Facts
I also learned there are 15 states in the U.S. that do not require sellers to give disclosures nor disclose material facts to a buyer. They are Alabama, Arkansas, Colorado, Florida, Kansas, Massachusetts, Missouri, Montana, New Mexico (condos are an exception), North Dakota, Utah, Vermont, West Virginia and Wyoming. In the those states, it's caveat emptor (buyer beware).
But just because disclosure is not required in those states, home buyers can still make seller disclosures part of their purchase contract negotiation.
Another startling fact Nolo revealed is that Arizona makes sellers tell buyers whether they have ever spotted odd creatures in their yard such as scorpions, mad dogs, swarms of insects or an owl. While I have never seen a reptile slither across my lawn, raccoons and possums cause a ruckus in my back yard at night, which I suppose could be considered a material fact by some buyers. Hey, Arizona, I just spied a duck flying overhead.
I'm not picking on Arizona. In northern California, agents use a form that says if you buy a home on a golf course, you could find errant golf balls rolling about your property.
Introduction to Home Buying
The first few chapters of Nolo's Essential Guide ease into the home buying process by talking about the benefits of home ownership, how to figure out the right home to buy and whether you can afford to buy it.
Older Home Values vs. New Home Cost
I found only one item that required further clarification. In Chapter 2, the authors made the statement that older homes tend to cost less and carry a lower resale value than newer homes. I disagree with that blanket assumption because older homes in desirable urban areas such as Sacramento and Minneapolis cost more than newer in outlying areas. There's a primary reason that new home buyers flock to the suburbs, and that's because new homes in those areas cost less.
On the other hand, infill projects -- where new homes are constructed alongside older homes -- will almost always cost more, as will tearing down a home to rebuild it.
Jam-Packed Information
The next six chapters zing right along. They cover:
- Finding homes on the market.
- Putting together your team of real estate professionals.
- Getting a mortgage.
- Finding the right house.
- Buying a fixer, FSBO or foreclosure.
The real meat of the matter shows up in Chapter 10: offer and negotiation tips. Here you will find out how to decide on the right price to offer and how to write a purchase contract, including ways to divide up the transaction fees.
Chapter 11 covers how to remove contingencies, buy title insurance and choose among the various ways to hold title. Most purchase contracts contain a provision that allow a buyer to back out of a deal if the property inspection doesn't bring desired results. Chapter 12 talks about how to find an inspector, the importance of inspecting the attic, spotting a wet basement and whether you will need a pest inspection.
The last few chapters deal with buying homeowner's insurance, home warranties, doing the final walk-through, funding the loan and taking possession of your new home. But don't miss the delightful CD-ROM bonus. It contains forms, checklists and questionnaires. It's not enough to simply interview your real estate agent or ask your mortgage broker pointed questions. The CD-ROM also gives you the answers to agent questions and how to tell if your mortgage broker answered the questions correctly.
CD-ROM Included
A bonus is the sample home inspection report. One of the worst nightmares a first-time home buyer can face is the fallout from hiring a bad home inspector. This report is typical of what a good home inspection should contain. I found the sample report to be thorough and complete because it disclosed not only general repairs but addressed safety issues, provided recommendations and noted when further evaluation might be necessary.
Recommendation
Nolo's Essential Guide takes the guess-work out of home buying. I give it two thumbs up. And my pinkies, too.
Nolo's Essential Guide to Buying Your First Home, by Attorneys Ilona Bray & Alayna Schroeder and Marcia Stewart. $24.95. Paperback.
