The reasons that a particular house strikes a particular buyer`s fancy are too subjective to be enumerated–one man`s castle could be another man`s rock pile.
But buyers need not slog through the moat of home buying without guidelines. Whether your tastes run to the suburban split-level or the urban loft rehab, there are some rules to follow in deciding if you are being particular enough about your particular choice.
Based on information supplied by the National Association of Realtors, the American Society of Home Inspectors and national real estate appraisal groups, consumers can find a variety of behind-the-scenes tips of what to look for in purchasing a house.
Some general decisions must be made before a prospective buyer can focus on an individual house. These include:
— New or existing house. Both a new house and an existing house have advantages and disadvantages, making the ultimate choice one of individual preference.
In a new house buyers generally get just what they want and have the satisfaction of knowing all systems have their entire expected life ahead of them. Maintenance and utility costs may be less.
But median prices for new houses are higher than median prices for existing houses. And lots of new houses tend to be in new neighborhoods. In Chicago most of the new house construction is occurring in the farther out suburbs that mean increased commuting time for downtown workers or longer trips for those who enjoy the culture of the Loop.
Buyers of existing houses have the advantage of choosing an established neighborhood where the infrastructure–water, sewers, roads–and the amenities –parks, schools and entertainment–are all in place and can be judged on past performance.
But existing houses come with baggage. Previous owners may have had bad maintenance habits as well as bad decorators. Exsiting houses are usually not as energy efficient as new houses and the age of the structure and its systems is a factor as well.
For many people, however, existing houses offer charm and warmth that cannot be matched by a new house. For others, nothing matches the convenience of modern layouts and designs.
— Location. The key word in all of real estate, location takes into account not just the city or suburb in which a house is located but also a large spectrum of needs that can be fulfilled on a particular site.
Since appraisers compare similar properties in the same general location, there is no objective financial way to compare one area to another. Just as housing prices and the cost of living vary from Boston to Chicago to Honolulu, so do they vary from Wilmette to Schaumburg to Homewood.
Primary factors in determining a location, experts say, are the distance to work, the relative pricing and availability of housing and the existence of amenities. Some things are a matter of preference–being near the lake or being close to the proposed new racetrack in Lake County–but some factors should be considered by all buyers regardless of their use for them at the time they buy.
Chief among those concerns is the school system. Whether a buyer has children or not, the resale potential of a house is affected by the quality of the schools since the next buyer may have children. Similarly, the quality of city services such as for senior citizens or teenagers also affect the potential of the house even if the current occupants do not avail themselves of the services.
— Price. Reality sets in with the first trip to a real estate agent or to a subdivision salesperson. No matter what people want in a house, their income will control just how much of it they will get.
Strict guidelines established by the buyers of mortgages in the secondary market control the amount of mortgage a buyer may obtain. Generally, a purchaser will be allowed to pay 25 to 28 percent of gross income for the principle and interest on a mortgage, although if a buyer has little or no other debt, lenders will stretch that figure to 33 percent.
So a two-income family with earnings of $60,000 per year would have about $15,000 or $1,250 per month for housing payments. At 10 percent interest over 30 years, that would translate to a mortgage of about $140,000.
— Features. How many bedrooms and baths? A basement or crawl space?
Deck, porch, patio or all three? Living room and formal dining room or great room? Fireplace? Garage? Pool? Landscaping?
Smart buyers make a checklist for themselves when searching for a house in order to compare these features. Again, there is no objective way to rate them, but buyers must keep in mind not only their current needs but also anticpated needs. And remember what the neighborhood and surrounding houses are like. A house that sticks out from its neighbors either for lack of features or for too many may prove difficult to resell.
— Construction. Basically, there are only two types–brick and frame
–although stucco bungalows show up a lot in Chicago. Again a matter of preference. Brick is thought of as sturdier and safer–a throwback to the Chicago Fire–and frame is usually easier to insulate and maintain.
In looking over a particular house, home inspectors advise buyers to take into account these things:
— Overall impression. Is the house well kept? Are the exterior walls straight or out of line? Check the condition of paint or siding, especially on the south and west sides where sun exposure is greatest. Make sure drainage away from the house is adequate.
— Roof. The age of the roof will tell how soon it will have to be replaced. A tar and gravel roof should last 15 years, asphalt shingles 10 to 15 years, wood shingles 15 to 20 years and wood shakes up to 25 years. Proper maintenance can extend those figures, but lack of attention to damage may lessen the life expectancy.
— Window and door frames. See if glazing putty has dried and shrunk, which would allow water seepage. Check for proper caulking around frames and weather stripping to enhance energy efficiency.
— Pavement, driveways and horizontal brick. Look to see if cracks have been filled and mortar between bricks is in good condition. Note any buckling of pavement and check for damage from water freezing in crevices.
— Attic and crawl space insulation. It may be difficult to gauge, but get a sense of whether the amount of insulation is adequate. Is it complete or are there gaps and does it appear to have been properly installed? See if it has covered air vents, which would prevent the house from receiving adequate ventilation.
— Plumbing. Test the plumbing by turning on the sink faucets and the shower, then flushing the toilet. Watch for signs of dropping water pressure. Fill sinks and tubs part way to make sure they drain properly. Look for signs of flooding or overflow around fixtures.
— Interior work. Check plaster for cracks and walls and ceilings to determine if they are level. New paint and carpeting may look nice, but are they hiding something underneath?
— Electric. The average house should have 100 amp service and be wired for 220 volts to handle heavy appliances. Look over fuse box or circuit breakers and decide if there are enough lines to service the rooms without overburdening the system.
— Heating. Oil, gas or electric service? Ask the owners for approximate annual heating bill and the age of the system. This will provide an idea of the efficiency of the system and insulation.
— Termites. Termites travel to and from the earth, so make sure that there are no places where earth is closer than six inches to wood. Look for wood or paper debris around joists or termite tubes and tunnels in the wood.
