If you approach the Austin area home buying process intelligently and with confidence, you are much more likely to buy a house you'll be proud to call home. Approaching the task of buying a home can be overwhelming; there's so much to consider:

• How much house can I afford?
• How can I find the best loan?
• Where will I come up with a down payment, and how much will I need?
• Should I buy a new or resale home, and which will go up in value?
• Should I work with an agent or look at homes on my own?

And these questions are just the beginning. Buying a home is one of the largest financial transactions in your lifetime - do your research so you know what you’re doing. Here are the two most important things to remember no matter where you are on the road to home ownership:

1. You can and should understand everything that is happening in the home buying process.

There is nothing that is so complex that it can't be easily explained to anyone with average intelligence. Just because you don't apply for a thirty year mortgage once a week doesn't mean you have to take the first one that comes along. You'll need to learn some new terms, apply some new concepts and take the time to understand what you're getting into. If, at any point, something happens that doesn't make sense to you, simply demand a full and complete explanation. If it still doesn't make sense, seek help from someone you trust like your CPA, your banker or maybe an online real estate columnist.

2. In the world of real estate sales, YOU are the most important person in the entire process.

It's easy to think that everyone else carries more weight than you. The agent talks fast and has an answer for everything. The lender may decline your loan application, and on and on. But the truth is that you, the buyer, are the one person in the transaction that makes it all happen. If you decide to not buy, the entire process comes to a grinding halt. So flex your consumer muscle and take command of this process. Surround yourself with a team of professionals that you have confidence in and make them work for you. Approach home buying with intelligence and confidence, and by doing your homework, and you are more likely to buy a house you’re happy with and to know that you made the right decision.

10 Steps To Austin Area House Hunting With A Well-Trained Eye

It sounds like a great listing – in your price range – in a good neighborhood – with features you’re looking for. First impressions mean a lot – but you find the bushes are overgrown, the front hallway is covered with tacky foil wallpaper, the kitchen cabinets are painted dark brown, the living room rug smells musty, and the hardwood floors have black water marks on them. Should you head back out the door? Maybe. But to fully determine whether you should cross this house off of your list you’ll need to gather more information, and perhaps look past the blemishes to get a full picture of this house’s potential. How do you do that? Follow these 10 steps.

When narrowing down your Austin area home search, consider the following:

1. Start with emotion, but end with facts. Buying a home in the Austin area can be an emotional process. You often find yourself trying to determine if this is where you want to spend the next 10, 20, or 30 years of your life (and perhaps raise a family). It’s OK if your initial impression is an emotional one. But because the purchase can be the largest you’ll ever make, it is essential that you gather all of the facts necessary to make an educated decision.
2. Look for good bones. Don’t get hooked on the decorating. The town or towns you are targeting for your home search likely have a handful of builders who have built a majority of the homes. Get to know the reputation of these builders. Then, before going to look at a home, find out who the builder was. You’ll want to be careful when looking at homes built by those with less than stellar reputations. Then, you need to learn to look past the furniture, wall colors, window treatments, and other decorating, and just look at the home layout and flow. New cherry cabinets and granite counters matter little if they are in the galley kitchen and you have a family of five. At the same time a family room with black walls featuring a mural of the moon on one side also matters little if it is big enough for your needs. Aesthetics are relatively inexpensive to fix – major construction is another matter.
3. When looking at room layout, corners are key. Rooms with doorways in the middle of walls flow better than rooms that open in a corner. Remember that when looking for your dream home.
4. Make sure the most expensive stuff works. The two most expensive rooms in a home to renovate are kitchens and bathrooms. If you’re stretching to be able to afford a home and still eat, make sure these two rooms don’t need renovating anytime soon.
5. Take an inventory of what needs fixing. Good news: With more houses on the market than in the past several years, you’ll likely be able to look at more houses before making a decision to put in a bid. Bad news: That means it can get quite confusing to remember the details of each. Develop a list of things you like in the house as you walk through each, and also make a list of things that might need fixing (see "Keep Them Straight", right).
6. Is there room for expansion? You might not be concerned with adding onto the home you’re viewing today, but what about tomorrow? Don’t necessarily exclude those that don’t have the room and a logical place to expand, but do understand that you will be limited in your options down the road.
7. Does the home need foundation work? Some areas in Central Texas are more prone than others with regards to expansive soils. We know which areas are more prone to having homes with foundation issues, and we also know who to call if something seems suspect.
8. What’s the condition of the home’s exterior? Does it need painting, or is it sided? Does it have painted brick that’s peeling? Is the aluminum siding chalking? Improving the exterior can be costly. Check the exterior walls carefully before putting in a bid.
9. Landscaping: Does it look like a park or a landfill? Landscaping not only includes the grass, bushes and any gardens, but also the hardscape – the sidewalk, deck and/or patio. People are spending more time than ever outdoors and you’re likely no different. Landscaping improvements can be costly, but is one area in which homeowners often tackle projects themselves. If you have the time, energy, and expertise you can save money by doing some landscaping improvements. But costs can add up here – be sure to factor that into your decision and/or bid.
10. Check the zoning, nobody likes surprises. Too often homeowners are horrified to learn that their tranquil neighborhood is being invaded by multi-family housing, a big commercial business, or a 24-hour convenience store. Before you put a bid on a house, go to the town hall, city hall, or county register of records and find out the zoning of all contiguous properties.

Home Inspections Can Help To Avoid Future Headaches

Suppose you bought a home in the Austin area and later discovered, to your dismay, that the stucco exterior concealed a nasty case of dry rot. Or suppose that when you fired up the furnace in the winter, you discovered a cracked heat exchanger leaking gas into your home. The best way to avoid unpleasant surprises like these is to arrange for a home inspection before you buy.

Home Inspections Help You Avoid Unpleasant Surprises

A good home inspection is an objective, top-to-bottom examination of a home and everything that comes with it. The standard inspection report includes a review of the home's heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation and basement.

Getting a professional inspection is crucial for older homes because age often takes its toll on the roof and other hard-to-reach areas. Problems can also be the result of neglect or hazardous repair work, such as a past owner's failed attempt to install lights and an outlet in a linen closet.

A home inspection is also a wise investment when buying a new home. In fact, new homes frequently have defects, whether caused by an oversight during construction or simply human error.

Getting an Austin Area Home Inspector

We have a number of experiienced home inspectors that we can recommend. We can help to ensure that the inspector will also give an unbiased report. You can also find one through word-of-mouth referrals, or look in the Austin Yellow Pages or online under "Austin Building Inspection" or "Austin Home Inspection." Home inspections cost about a few hundred dollars, depending on the size of the house and location. Inspection fees tend to be higher in urban areas than in rural areas. You may find the cost of inspection high, but it is money well spent. Think of it as an investment in your investment – your future home.

Some Austin area new home builders may try to dissuade you from getting a home inspection on a home they've built. They may not necessarily be trying to hide anything because most builders guarantee their work and will fix any problems in your new home before you move in. Some builders, in fact, will offer to do their own inspections. But it’s best to have an objective professional appraisal - insist on a third-party inspector.

An Inspection Will Educate You about Your Austin Area House

Education is another good reason for getting an inspection. Most buyers want to learn as much as they can about their purchase so they can protect their investment. An examination by an impartial home inspector helps in this learning process.

Ask if you can follow the home inspector on his or her rounds. Most inspectors are glad to share their knowledge, and you'll be able to ask plenty of questions.

Inspection Timing and Results

Austin area home buyers usually arrange for an inspection after signing a contract or purchase agreement with the seller. The results may be available immediately or within a few days. The home inspector will review his or her findings with you and alert you to any costly or potentially hazardous conditions. In some cases, you may be advised not to buy the home unless such problems are remedied. You could include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, you can back out of the deal. If costly repairs are warranted, the seller may be willing to adjust the home's price or the contract's terms. But when only minor repairs are needed, the buyer and seller can usually work out an agreement that won't affect the sale price.