One of the challenges of purchasing real estate is making sure you get what you think you are getting. The property you want might look great—especially if the seller has spiffed up all the things that make a great first impression and your emotions are running high because you think you’ve found the perfect place. But it’s very important to remember the things you can’t see.
Every buyer should go through a thorough process called due diligence. State law is designed to afford as much protection as possible for property sellers and purchasers through licensing of real estate professionals and procedural requirements, but regulations are limited to broad strokes and generalities, and you will be the one holding the bag if there’s something about the property (or its location) you didn’t know about until after you buy it.
The Big Picture
What’s the neighborhood like? What’s it like when that nearby school is open or during rush hour or when the sun goes down? Once you’ve found a home you think you want, walk and drive around the area at varying times of day and night and at different times of the week. Get a feel for the types and qualities of activity that could impact your life if you lived in that home that looks so good in the bright light of a Sunday afternoon. Where are the shopping centers and resources that you will need once you settle into a routine?
If you want to be really thorough, go to the city Planning Department and look at the zoning map. You might find that the property you want is near a commercial zone, a high density housing zone or a redevelopment zone that is subject to future changes. Ask a planner if he or she knows of any long range plans that might affect the area you are considering moving to. Are there special fire hazard or flooding zones?
The Property
Remember that your realtor is supposed to be representing your best interests, but don’t be afraid to involve her or him in your own due diligence process. If not already covered, ask for proof that the property lines are, in fact, where they appear to be (the line may not be right where that fence is located, and you wouldn’t want to discover later that you bought a fence that has been built on someone else’s property).
If there are additions that could have been added to the original house, or structures that have been erected elsewhere on the property, obtain copies of building permits to assure they are legal. Sometimes property owners throw up a shed or workshop in ignorance of setback requirements and building codes. Violations discovered after you buy could result in having to tear down or modify illegal improvements.
The Building
The critical components of any house are the structure and the electrical, plumbing and heating systems—things you can’t see, but could be very expensive to repair or replace. Water proofing materials and details, intended to protect the structure and interior, can result in structural deterioration if they are of poor quality and are not properly installed.
It takes a practiced eye and special knowledge to evaluate these components, and you will be doing yourself a great disservice if you don’t hire a reputable home inspector to prepare a thorough report on the condition of the property. Ideally, you should attend the inspection so you can see first hand what you’re thinking of buying. Use the results of the inspection to negotiate the repairs if there are costly deficiencies.
Seller Accountability
State law requires only that a seller furnish a purchaser with either (a) a RESIDENTIAL PROPERTY DISCLAIMER STATEMENT stating that the owner is selling the property "as is" and makes no representations or warranties as to the condition of the property or any improvements on the real property, except as otherwise provided in the contract of sale, or in a listing of latent defects; or (b) a RESIDENTIAL PROPERTY DISCLOSURE STATEMENT disclosing defects or other information about the condition of the real property actually known by the owner. Certain transfers of residential property are excluded from this requirement.
Make Sure You Get What You Think You’re Getting
The Ron Howard Group prides itself in its attention to detail and going beyond and above industry standards to provide excellent service for every single client. We like to help our clients understand all aspects of the process they will go through when buying or selling property, and encourage buyers to complete the due diligence steps that only they can perform.
We’d love to discuss any questions you might have about how real estate transactions work, or to represent you on either side of a transaction. Give us a call.
Contact The Ron Howard Group @ 410-814-2404 or email Ron @ ron@livebaltimorecity.com.