First time buying a house questions.

5 Replies

It’s my first time buying a house and I’m going 50/50 with my partner. What are some of the things I should know or look out for?

Should we get a real estate lawyer involved?

Is there anything I should expect or look into before buying?

Is it safe to create our own lease agreement?

Please help me understand some stuff that I might not be thinking of.

@Tyler Battaglia

Lawyer: Depends on your state, town, city, county etc. Some places require a real estate lawyer be involved to complete a real estate transaction. As far as a lawyer for partner agreements, I would suggest getting something written up. They might be your best buddy but things get sticky fast when you disagree and there's no official agreement.

Expect: to spend money. Closing costs can rack up quick. Be open and honest with your lender so they can give you the most accurate prediction for costs. Expect time, you aren't going to find a house, apartment etc in your first week. Visit a lot of homes before you make a decision to buy one. Example, I ALMOST gave up looking to settle on a house I wasn't enthusiastic about because I was tired of looking. One week later I found a killer deal that would've made me look dumb if I gave up and bought the first place. (Three months looking). 

Always get an inspection and termite inspection.

Lease: Yes and no. No do not draft your own up from scratch. But I don't see an issue with finding your states generic lease agreement (lots of states have them, just look up standard state rental agreement). After you're done amending the agreement to fit your needs (changing the word apartment to house or taking out the section about community pool if there isn't one) you can get a lawyer to look it over.

Stuff you won't be thinking of: Something is always going to sneak up on you that you didn't think of so just be prepared to adapt.

@Tyler Battaglia

Always get a professional home inspection. A home inspection report is beneficial in the fact that it will help:

Identify building defects

Outdated code defects

Building materials

Age of appliances

This will help with any budgeting, as well as, what should be upgraded (old cast iron DWV system vs. ABS etc.)

In regards to partnership:

have it clearly written and agreed/signed upon by both parties the rules and responsibilities (including payouts), also make sure to discuss what happens in the event of default, deathor distress. Most people hate talking about that but it is a possibility.

@Tyler Battaglia . My advice is to not have a partner especially on your first deal. It can set you back years if things become a legal headache. Experience may vary but if you can go alone do it that way. You will gain experience and build contacts

@Tyler Battaglia

1. house appraisal: so you know how much it is actually worth and don’t have to worry about over paying.

2. Home inspections : will give you list of things that’s gonna need to be fix or in future.

3. GC to get estimate on all the fixup

4. Run the numbers.

It’s also good idea to have structure engineer to looks at the house. This will rack up the most $$ but to me, I value this over a lot of other stuff.