When buying a house in the Tennessee Valley it is important to keep the following in mind:
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You Need To Get a Survey
It is ALWAYS important to get a survey of the land before you purchase. This will help you to avoid property disputes and encroachment on another homeowner’s land. These property disputes can cause you to pay hefty legal fees or lose the disputed portion of land. Also, it is wise to walk the boundary lines. Ask yourself, are there any buildings, fences, or permanent items that look out of place or cross the boundary lines.
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Unmarried Co-Owners – Who Will Own What?
If you are buying a house with someone, it is important to clearly determine who owns what and what happens if the asset is sold. One of the ways to do so is to form an Limited Liability Company for the purpose of buying the property. This is especially important for unmarried couples, even if you plan to get married at some point. Take the time to discuss it with a lawyer and come up with a plan that protects you and your interests.
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Have an agent or attorney on your side is critical.
You need an agent or attorney that looks out for your interests. Statistically, a house is the largest single asset that the average American family currently owns or will own at some point in their lifetime. Therefore, buying or selling a home may be your largest financial transaction ever! Avoid dual agency relationships. Not only are dual agents relieved of their duties to inform you of critical information, they are not necessarily obligated by law to act in your best interest. If you do allow a dual agent to represent you, then read the disclosure of their duties and obligations carefully. An independent agent or attorney that you hire acts on your behalf and owes duties to only you. Contact us today to discuss whether we can assist with the process of buying or selling real estate in North Alabama.
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Home Inspections
The law in Alabama can be summed up as “buyer beware.” Even where the are issues with a house, courts tend to find for the seller absent a few narrow exceptions for health and safety. Before purchasing your desired home, it is essential to fully vet it. Hire an inspector that will give a detailed inspection of the home. If the inspection reveals any issues with the foundation or major systems of the home, follow up with a specialist inspection. This will help you to be fully aware of structural issues or anything that might compromise the health and safety of your family. Further, if major issues are discovered it may provide a basis to cancel the contract and avoid a nightmare situations.
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Hidden Costs
When determining your budget for buying a house, it is important to factor in hidden costs and fees. Make sure to think about things like homeowner’s insurance and maintenance. If you plan on living in a neighborhood, ensure that you are aware of HOA fees, regulations, and bylaws. Other things like property taxes and utility fees can be an unwelcome surprise. These hidden costs can add up, so be aware of them and factor them into your budget. If any of these items are included in your estimated closing statement or mortgage payment, make sure the projections are realistic.
