Buying a Home

As someone who has never seriously shopped for real estate, I was shocked by the list of things that are involved in the process. Just hearing the list had me itching to make sure everything was kept in one place and arranged for ease of use. At least parts of my suggested process below could also be applied to renovation projects, car buying, or other major purchases.

Start by making a designated bookmarks folder for links related to the process. In the early days of your search, bookmark listings for places you’re interested in or the websites for recommended real estate agents. As the process gets going, consider making sub-folders to keep each part of the process separated. Make sure you name your bookmarks well so that you will be able to easily identify each one. Having to open 10+ bookmarks because you can’t remember which link is for the blue house with orange shutters and garden gnomes is not something you should have to do. If you’ve eliminated a house, agent, contractor, or anything else from the process, don’t keep the bookmark. It will only make it difficult for you to see which links are still relevant to your search. If you are eliminating it, but think it is possible you may need to come back to it in the future, either create a separate sub-folder for all eliminated options or add an “X” at the beginning of the bookmark name, so you can quickly scan down the list to see what it still active.

As you try to select a property, set up a spreadsheet that compiles all of the details you’ve gathered across your sources. This will make it easier to see things at a glance and to compare elements between your different options. Your spreadsheet can be as simple as the specs for different homes you are considering (price, year built, square footage, number of bedrooms and bathrooms, seller contact information, etc) or you can keep a much more detailed record where you include all of the amenities and pros/cons for each property. The key thing to capture here is any elements that are important to you in deciding which house to pursue. If you are only looking at three-bedroom homes, then listing the number of bedrooms on your spreadsheet is meaningless. Maybe a large kitchen is important to you, so add a column where you specifically detail the square-footage or counter space of the kitchen in each home you are considering.

I know we are all trying to reduce paper use, but once you start to pursue a specific property I really do recommend using a classic three-ring binder or an accordion folder. The buying process involves documents from so many different sources, not all of which can be obtained electronically, and with a big undertaking such as this I find that it is easier to process the influx of documents when you have a physical place to keep them all together.

If you have any decisions that require comparing estimates and making a choice (such as contractors), create a tab for the decision ("Contractors") but then have sub-dividers using sticky flags or smaller tabs that have the names of each option. You don’t want to get the paperwork to get mixed up between them! Also, go back to your spreadsheet to help you compare the various quotes and estimates you receive. This time consider variables such as price, estimated length of project, your gut feeling of trustworthiness, credentials, etc. As with your bookmarks, if you decide against something, I would move the related paperwork to the back pocket of your binder or folder. It is then out of your way and doesn’t make it difficult to flip through your remaining options, but you still have the documentation available in case you need to refer back to it later in the process.

Other documentation you might consider including in your binder are open house notes or pamphlets, inspector reports, mortgage pre-approval, legal documents (such as a purchase and sale agreement), a list of things you love about the house (for potential use in a “Love You Letter” which is sometimes included with an offer to sway the seller in your favor), a list of work that needs to be done before moving in (for use in determining the extent of contractor work), permits that have been officially filed for work done on the house in the past (helps determine when updates were made and if any work was done without permits), and research into local ordinances or quirks of the law that impact your locale.

The home buying process is complicated and stressful, but it doesn’t have to be disorganized! I’d even argue that being organized will help decrease the level of stress involved as you will feel more confident that you have all of the papers in one place when you need them.

Have you ever bought property? How did you handle the influx of documentation and information?

Thanks to Lynette and Steve for their insight into the house buying process!