Sacramento House Hunting Strategies

Sacramento House hunting is a logical process that your agent has experienced over and over again. As you turn corners and discover new questions along the way, you can count on Tom's expert guidance to take you through the maze of evaluating Sacramento homes and neighborhoods and to understand today's mortgage market. You're well on your way.

What steps are involved in locating your optimal Sacramento home?

Your first step is to consult with the real estate agent and outline a sound home-search strategy (as discussed in "Getting Started," Chapter 1). Next (in approximate order) comes researching (with the agent's help) areas, neighborhoods, homes and financing.

Then you start moving, touring neighborhoods and inspecting homes. When you find what you like, you make an offer to purchase (possibly contingent on a home inspection, financing, etc.). After you reach an agreement with the seller, who signs the offer to purchase (also called a "binder" or, for new homes, a "contract of sale"), you may want to to have the home inspected to remove the contingency. Then you consult with the agent about lenders and your mortgage application comes next.

About this time, you may hire an attorney to review your contract, mortgage and perhaps other matters if you feel it's necessary. Once your mortgage is approved, you take out whatever insurance policies you'll need.

As the escrow closing date approaches, you notify movers and utility and phone companies. At settlement, you sign a collection of documents and pay your down payment and closing costs. In return, you get copies of the papers and the keys to your new home.

What's the best way to know what kind of home is right for me?

By examining your lifestyle carefully. Ask yourself such questions as:

• "Do I like swinging a hammer?" If so, an older home is a good bet.

• "How much time do I expect to be at home?" If you're a real homebody, you might think about a single family home with an inviting yard that will take hours of care. If you're on the run a lot, a condominium--with no yard care--might suit you better.

• "Do I like neighbors around but want a good-sized home, not an apartment?" If so, perhaps a townhouse would suit you best.

• "What style of home attracts me?" Each has practical as well as aesthetic advantages.

• What's the most efficient way to know what's on the market?
  
  The primary source of information about what's happening today in the housing market is the local Sacramento Multiple Listing Service (MLS). Brokers throughout your area enter properties for sale into the MLS, and an agent can show you any home listed, or in some areas, the agent may call the listing agent first.
  
  Before you actually hit the road, you can search the system to find homes in Sacramento, Folsom, Rocklin, El Dorado and other areas in and around Greater Sacramento  that meet your description, considering characteristics including: area, property size, type of home, style, number and size of rooms, appliances and water and heating/cooling systems, plus extra features such as fireplaces, saunas, landscaping, pools, etc. Financial information is also included, such as: price, mortgage balance, monthly payments, cash needed to assume the seller's mortgage (if it's assumable), whether or not the seller offers second mortgaging and annual taxes.
  
  What should I look for in a neighborhood?
  
  Some neighborhoods speak loud and clear at first glance: the quality of life is apparent in its streets, parks, buildings, homes and yards and the folks you see. You get a feel for it (either for or against) just by looking.
  
  Your Sacramento real estate agent can, of course, fill you in on community details that are not so obvious at first glance:
  
   

• What zoning regulations apply

• Where schools, supermarkets, libraries, hospitals, places of worship and fire and police stations are located

• What community services are available

• What construction plans are in the offing

• What shifts in transportation facilities are occurring

• Whether home values have appreciated or depreciated

• What tax rates prevail

For a more intimate impression, you should walk around a neighborhood that looks attractive to you. Visit the schools your children will attend to confirm district boundaries and make comparisons with other schools. Talk with people at bus stops (ask about commuting schedules and costs), in shops (chat about where the best stores are), in parks (get folks talking about recreational programs) and in front yards (ask what they like and dislike about the neighborhood). You might take instant photos as you tour different locales. They'll help you later when you want to keep the different streets and homes separate in your mind. Also, take notes to later compare, especially addresses and prices.

Inspecting Sacramento neighborhoods is as necessary as inspecting the home you may buy. An old real estate maxim says, "The best time to think about selling your home is when you're buying it." That's because location will be a prime factor influencing future buyers when it comes time to sell your home.

What features make one home style different from another?

Style preference involves personal taste, family needs and your budget. This section is designed to illustrate some of the most basic home styles. Space doesn't allow us to show the numerous variations and many other unique styles available in today's market.

Colonial (New England, Federal, Dutch, etc.): A good separation of space in these roomy, two-story homes with center-front or side entries; living-room, dining room, kitchen on one floor; bedrooms upstairs. Privacy is possible but stair-climbing is inevitable.

Ranch (also "Rambler"): Typically, one-story homes with bedrooms separated from living quarters and kitchen, often in wings. May or may not have a basement.

Cape Cod: Cozy living in one-and-a-half story homes. Steep roof lines make slanted-ceilings in upstairs rooms, which often have dormer windows. A good bet for handy buyers who can finish the upstairs by themselves, if needed.

Country (also "Farm House"): Popular in both rural and suburban areas, this rustic one-and-a-half or two-story style features simple room arrangements, large kitchens, front porches.

Split Level (also, "Tri-Level, "Four Level"): Part of the home is two-story, joined to a one-story section by short flight of stairs, sometimes giving each room a floor of its own. Compact use of space and a good design for sloping property.

Victorian: Unexpected nooks and crannies in older homes, modern adaptations of Victorian design use space more conservatively. Special features: wide porches, sometimes turrets and gingerbread trim.

Contemporary: Out-of-the-ordinary, often striking use of space in these homes that often feature dramatic shapes and unorthodox use of materials (concrete, diagonally-slanted wood siding, glass, etc.).

Townhouse (also "Patio Home," "Row House"): Attached homes of similar style (Colonial, Spanish, Contemporary, etc.) share common walls, offer two or three floors of living space comparable in size to detached homes. They feature small, easy-to-care-for yards. (Some duplex townhouses look like single-family homes, with the entry to one home at the center-front, to the other home at the side.)

Condominium: Technically not a style, but a form of ownership. Condominiums can be townhouses, clustered units, low-rise (up to four stories), high-rise or even detached homes. You own both your private quarters and a share of common land and areas. A monthly condominium fee is charged to each owner for maintenance fees.

What should I specifically look for in a new home?

New home construction is changing all the time as builders try to adapt designs to today's lifestyles, make the most of living space and incorporate new technology, building materials and equipment--while keeping prices affordable. Buying a new home is attractive because everything's new, from floors to appliances. Energy efficiency (insulation, weather stripping, energy-saving heating/cooling systems and electricity) is required by building codes. Buying a new home while it's under construction lets you choose paint, wallpaper, tiling, etc.

Look out for the following in older homes in Sacramento:

• How firm is the foundation?

• How sound are the sills, walls, floors and ceilings?

• What kind of plumbing was installed? When?

• What's the shape and extent of the electrical system?

• What are monthly energy costs?

• How well does the insulation protect the indoors?

• What will it cost you to remodel if necessary (especially kitchen and baths) or to make necessary repairs?

• If in doubt--or just for your peace of mind--you can hire a certified home inspector for a professional opinion.
  
  What can I expect from a professional home inspection?
  
  The job of a professional inspector is to look over every major part of a home and write a report that judges the home's quality and condition. A well-qualified building inspector who has adhered to federal licensing standards can spot problems that you might not be able to see or get to. However, it's wise for you to accompany the inspector so that you don't have to get the report secondhand.
  
  What's the secret in making a good condominium buy?
  
  Each condominium HOA has its own rules, and as a member of your community you help decide what can be done to the outside of units, whether or not pets are welcome, what landscaping and community improvements are made and what by-laws are passed or amended. Because the HOA can pay for amenities or limit spending to save expense, it is important for you to know if existing owners are in tune with your financial position by checking recent budgets.
  
  Shopping for a condominium means looking for the same things you look for in buying any home: a neighborhood on the upswing (for maximum enjoyment and for appreciation possibilities), good construction (especially in sound-proofing of walls), good style and sound financing. An agent knows the local Sacramento condominium market and can assist you in evaluating the different communities.