In the video above Diann Patton of Coldwell Banker Grass Roots Realty talks about why you want to make sure you are focused when it comes time to do your walk through on your new home.

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment
• Loan origination
• Points, or loan discount fees, which you pay to receive a lower interest rate
• Home inspection
• Appraisal
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording
• Underwriting and Doc preparation
• Land survey
• Notary fees
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations

Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

Diann Patton of Coldwell Banker Grass Roots Realty gives you the lowdown on what to expect when it comes time to close on that first home.

Diann Patton of Coldwell Banker Grass Roots Realty explains just what happens after that offers is made.

While I’m about the furthest thing from a mathematician,  conventional wisdom has it that a $50K increase (in a home’s purchase price) would be more impactful on my finances than a $5K increase (in taxes). 50 > 5 after all, isn’t it? Well, the reason why this can be wrong and fly against typical math is that an increase in the cost I’m paying for a home is spread out over the life of my mortgage (usually 30 years) while what you pay in property taxes is a cost incurred every year and usually paid monthly.

I’ve crunched some numbers on our Coldwell Banker Mortgage calculator to get a really quick and dirty look at how property taxes impact the amount of home you can buy. Let’s take a look.

House A
Listing Price: $259,000 with 10% down and a 3.5% interest rate
Property Taxes: $8,000
Annual Insurance: $720
Annual Condo Association Fees: $3,600

Estimated Monthly Payment: $2,195

House B
Listing Price: $298,000 with 10% down and a 3.5% interest rate
Property Taxes: $2,536
Annual Insurance: $720
Annual Condo Association Fees: $3,336

Estimated Monthly Payment: $1,893

So for these two real listings I’ve found on coldwellbanker.com, I could conceivably end up purchasing a $39,000 more expensive home and still end up saving over $300 a month, which amounts to over $100K over the life of a 30 year mortgage. This isn’t exact science, and things get even muddier if you’re purchasing a single family home and aren’t burdened by condo fees, but clearly working hand in hand with your Realtor and a mortgage professional is a pivotal part of navigating this whole homebuying process and getting your dream home at a price you’re comfortable with.

Coldwell Banker Home Loans Mortgage Advisor Stephen Kulisek puts this into much better perspective for us:

“In this market every $10,000 borrowed may cost you only about $45 per month on a 30 year fixed mortgage while every $1,000 in real estate taxes per year will cost you about $83 per month. This means that from town-to-town and in some cases even street-to-street your Buying Power can change by almost $20,000 with every $1,000 spent on real estate taxes. Wow is right! This could mean the difference between that $380,000 home or the $400,000 home just a few miles away. The same logic applies to the requirement of monthly flood insurance in certain areas or mandatory homeowners association dues. So remember, Buying Power all comes down your total monthly housing payment and knowing the facts, staying informed, and doing your research are the keys to success in this home shopping season.”

There’s nothing more exciting than researching homes on the internet, sifting through hundreds (maybe thousands) of photos of homes listed for sale until you narrow down the possibilities and compile your list of those you’d like to see in person. In most cases, a picture is truly worth a thousand words.

On numerous occasions, I’ve had the pleasure of walking through homes with First Time Home Buyers to discover some of the most outrageous and interesting features a house could possibly possess. Some in which you wish the Realtor would have posted pictures of, so you could’ve ruled it out as a possibility and saved yourself the gas and your precious time to see it.

Epic Fail!

Homes with holes in the floor (we could see the dirt fill below), bathrooms with the door against the toilet, homes that were previous crime scenes (which I found out later via “Googling” the address), an ENTIRE home that was a dedicated shrine of Dale Earnhardt Jr (I’m a fan, just not an entire house of it) and my personal favorite:  a bidet in the middle of a bedroom, yes, a bedroom.

It’s tough to see yourself in a home when either photos don’t do a good home justice or when a potential home is washed out by clutter or issues that are hard to look past. Here’s a few tips to help you to weed out the bad ones from the diamonds in the rough:

Do Your Homework:
- Go online:  Did you know that most Realtors can send you listings via email to check out from the web from the comfort of your couch? Use their services to check out homes! Their MLS will be your most up-to-date source for what’s available on the market. Also check out www.ColdwellBanker.com and their app as well.
- Do the Drive-by:  If it’s a good possibility, drive by the home and see if you like the location. This will help you to weed out more homes than you think.

Look Past the Surface:
- Good Bones:  If shag carpet and gaudy wallpaper isn’t your thing, don’t sweat it. Those are cheap fixes to a home that may have great bones. Look past the things that are easily replaceable and look at the layout of the home, as adding an addition is way more expensive than that gorgeous granite you’ve been dreaming of.
- Don’t Fall for the Bells & Whistles: Quite opposite of the last tip. A home may have some sweet upgrades like solid counter tops and stainless appliances, but you aren’t too crazy about the layout. Just remember, you can always customize the home down the road but living in a home with an awkward layout can eventually get annoying. It’s more expensive to do a total renovation (knocking down walls, permits, etc) than it is to buy an entire stainless kitchen on a Memorial Day sale.

Think About the Future:
- Resale, Resale, Resale:  That small bedroom that is a decent “office” now may not be a considered good-sized bedroom for a buyer down the road when you’re trying to sell, as this personally cost us 10+ buyers when selling our home!  Don’t compromise on things that you think may hinder your chances of selling the home in the future.
- Replacement Costs:  Buying a home is an investment, especially if you have to replace a ton of stuff inside. Take a closer look at things like the roof, air conditioning unit, pool pump, and other high ticket items that could be in need of replacing. It’s good to budget replacement costs into your yearly budget, but you don’t want to take on a home that needs everything replaced all at once.

A Home Fit for a Family:
- Busy Streets:  If you have or plan on having kids, that’s great, just make sure the house accommodates them! Any parent of a toddler will tell you that living on a busy street is one of the scariest things in the world as you watch cars fly by your driveway. Consider an area that has less traffic and will be safer for the little ones.
- A Tub:  As silly as it sounds, you will want a tub in the guest bathroom. Unless you want your sweet munchkins taking over your master every night until they can bathe themselves, save yourself the insanity and make sure there’s a tub in the guest bathroom for the little ones.

These are just a few things to think about when you’re looking to buy a home for the first time. When in doubt about certain things, always consult a real estate professional, as they are your best source of information in the home buying process.

No matter what your first time home buying adventure is like, just remember, you could always have a bidet in the middle of your bedroom.

Ashley Houseman( YES! Her last name has HOUSE in it) is an Associate Broker/REALTOR® with Coldwell Banker Morris Realty. in Punta Gorda, Florida. You can follow her on Twitter at @BrokerEXCLUSIVE or visit her blog brokerEXCLUSIVEblog.com.

1. This ain’t your mama’s house – talking about getting opinions from others and that sometimes your mother may know best best not always…..choose a couple people to be sounding boards for throughout the process and that’s it.  Getting advice and opinions from too many people sometimes just makes thinks more complicated and makes you lose sight of what YOU want and need and that is most important.

2.  You live with the payment not the price – the purchase price is important or “top of mind” twice.  When you buy and when you sell.  It is the monthly payment that you live with.  Sometimes first time home buyers get so caught up on that big picture number and forget that in the end its the payment that you live with month to month and although a few thousand dollars this way or that may seem like a big deal it may not be when you look at the monthly number.

3.  You are what you eat….or where you eat anyways;) - don’t forget about real estate 101….location, location, location.  Keep in mind your daily commute, proximity to friends, family, and your life….the gym you go to, your favorite restaurant or bar, etc. I’ve had many people call me to sell because the location was never their top choice but never usually the opposite.  Don’t only pay attention to the house…look outside and around as well and keep that in mind.  I would rather someone take much longer to buy and hold out for a specific location or neighborhood than settle for a house that was great but in an area other than what they want.

4.  And on that note it should be “75 to buy”– a house isn’t going to be 100% what you want from the first time you set foot in it.  Stay focused on your most important wants and needs but let go of perfection.  A home should be 75% or more what you want and the other 25% is what you make it.  You choices in paint and décor, cosmetic stuff, etc.  Part of the joy of home ownership is making it your own.

Stay in touch with Jessica by visiting thecarolinasfinest.com or visit her YouTube channel for more insightful videos.

From Colby Culbertson, Regional Field Marketing Manager, Coldwell Banker Residential Brokerage Sacramento, Tahoe

1. Get Pre-approved (NOT PRE-QUALIFIED) BEFORE you start looking for houses. It makes absolutely no sense to start looking at houses until you actually know what you can afford. It will save you and your sales professional a lot of time.

2. Always get a home inspection, its well worth the investment.

3. Never buy more house then your lifestyle can afford. Too many buyers get in over their heads because they buy as much house as they can afford, and forget to calculate other living expenses such as utilities, vacation, hobbies, etc.

From Sean Carpenter, Director of Agent Development, Ohio NRT Companies

1. Meet with a full time Realtor who can help you clearly identify and then separate your wants and needs. These will include exploring where you are now and where you want to be once you have closed on your new house. A good agent will explore “why” you are seeking the specific features instead of just asking “what” you want to see.

2. Understand clearly what you are going to get for the money/price range you are looking in. Buyers moving from Omaha, Nebraska will be shocked at what $200,000 would get them in Chicago or San Francisco while buyers moving from Boston or LA to the Midwest would most likely be able to change their entire lifestyle (commute time, hobbies, schools, etc.).

3. Have an agent clearly explain the timelines involved with the process. Depending on how “selective” (i.e. “picky”) a buyer is, it could take a while to find the right home – especially with diminished inventories in most markets across the country. Finding the right house is just the start of the process and depending on the type of financing it could take anywhere from 30-60+ days to get to a successful closing.

We had to add in Sean’s final comment… “All the more reason to work with a full-time Realtor from Coldwell Banker, huh?” :)

From Andrea Geller, Broker Associate, Coldwell Banker Residential Brokerage Chicago, IL

Focus on if the space(home) and location works before getting wrapped up in anything else. If those 2 things aren’t right for you then you should move and not waste energy on it.

From Vance Anthony Hill, Founder, Seattle Luxury Group, Coldwell Banker Bain

1. Interview multiple agents – take the time to interview a few agents. Don’t base your decision strictly on friendship, family or length of time in the business. Those aren’t always the most qualified person to help you. This is the biggest financial decision you will make. Sometimes in your entire life. Would you hand over your savings account to your brother to invest your money, just because he’s your brother? Or would you hand that over to the BEST QUALIFIED person? Find out who will be helping you with this process. DO they meet YOUR qualifications to best suit your needs?

2. Buy Smart – Don’t buy a $400,000 house just because your lender says you can afford it. If there is a 200-300 house that suits your needs, buy that and save the mortgage payment for something else. Remember, statistics show homeowners move every 5-7 years. Why not use that information to your benefit? Buy what you need, not necessarily what you can so you can buy what you WANT later.

From Mike Bowler, Associate Broker, Coldwell Banker Hubbell Briarwood

When writing an offer in this competitive market, buyers should 1. Have a strong deposit (Stronger the deposit, stronger the offer) 2. Offer what you’re willing to pay for the house and indicate that you are FIRM. Low offers hoping for a counter offer lose homes for buyers to multiple offers from others. 3. Be prepared to look at new listings upon a moments notice, the good ones go fast.

From John Riche, REALTOR®, Coldwell Banker Pro Co,  St. John’s, NL, Canada.

Bring a golf ball on all appointments to test for level floors. I jokingly call mine the Titanium 1000 Levelometer. (We love this!)

Have more questions about buying a home? Visit coldwellbanker.com and contact an office near you.

In this video Diann Patton of Coldwell Banker Grass Roots Realty gives you a simple explanation of what these two terms mean and why they are so important.

Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:

1. Will your inspection meet recognized standards?

Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online at www.ashi.org or www.nahi.org. ASHI’s Web site also provides a database of state regulations.

2. Do you belong to a professional home inspector association?

There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.

3. How experienced are you?

Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date?

Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.

5. Do you focus on residential inspection?

Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.

6. How long will the inspection take?

On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.

7. What’s the cost?

Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.

8. What type of inspection report do you provide?

Ask to see samples to determine whether you will understand the inspector’s reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.

9. Will I be able to attend the inspection?

The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector’s refusal to let the buyer attend should raise a red flag.