The Indians Abroad

Tips on house hunting abroad – in USA or Canada!

Have money? Like shopping?…

When it comes to housing today, it is a ‘buyer’s market’. ‘House for sale’ signs are multiplying in every neighborhood; with lots of sellers eager to sell. It is a good opportunity for those who are looking for house.

The process of finding and purchasing a house can be fun or a headache, depending on the circumstances or how you approach it. In most of the cases, the main reason for a house purchase is:

• upgrading to a house from an apartment,
• moving into a new area due to job or business or family reasons,
• buying a house for renting out, or as an investment.

Regardless the reason, the house buying process is quite similar in all such cases in USA and Canada. Many of these steps or commonsense rules also apply for rest of the world as well.

Here are the key factors and main steps to consider before and during the house purchasing process:

Selecting the real estate Agent: The house hunting in itself is an adventure. Some people try it by themselves, while others hire a real-estate agent – the realtor. A good real-estate agent is instrumental to finding the right house and closing the deal smoothly and efficiently. A real-estate agent can simplify the whole process to an art. So, it is very important to hire a good and reliable realtor. Make sure to interview -yes, interview- multiple agents and ask all the appropriate questions including:

• their qualifications, experience and background,
• do they work alone or in a team?
• their track records or success rate,
• knowledge of the area,
• overall chemistry or easy to work with,
• Any other factors that are important to you: For example, possible issues of the language barrier etc.

Many Indians hire a realtor from their own community while others prefer a professional strictly based on the qualifications.

Know your budget:How much are you willing to spend, or how much can you afford, is always a good question to ask. There are many online tools that can help with calculating the monthly mortgage amount, and other expenses related to house buying and maintenance.

Mortgage pre-qualification: It is important to make sure that you are able to secure the financing for the house. Talk to your bank or a mortgage expert/broker, and find out how much mortgage you can get. Make sure that you feel comfortable with the loan amount, and the resulting monthly payment.

Know your needs in the new home: How many bedrooms, the  garage size, the number of bathrooms….? Depending on the personal and family needs, decide on the size of the house and see if it fits within your budget. The real-estate agent and the mortgage broker are always knowledgeable in this area and always willing to guide. Remember, they don’t get paid until you buy!

Location, location, location: Location of the house is a very important factor. Decide on the neighborhood and location or area where you want to live. Again, depending on the budget and personal preferences, the real estate agent can help you decide on the possible localities, the associated budget and kind of neighborhood that meets your needs. Investigate the school district standings for those neighborhood.  

Must-have features of the house: Now that you have general idea on the type of house, the neighborhood and the budget, the next step is to decide and discuss which features are most important to you and which you can live without. Based on your priorities, the real-estate agent can help generate a list of the houses on sale in your area of interest, the houses that may fit your needs and wants.

The Hunt: The most exciting part is visiting the houses on sale and looking at different properties to find the best fit. This is like going from mall to mall looking for a dress, to find the right color, the right style and the right size. Except in this case, the stakes are much higher; and you cannot return it after trying it on for a few days.

Short-listing: As you visit different house, you and your realtor will start to get a feel for what is out their and what tickles your fancy. Some house, as you walk in, will attract you and impress you; others you will feel quite the opposite. It is always a good idea to take notes, as you walk through each house. This helps to keep track of each and every visit, and for later reference to create a short-list or decide on the best candidates.

Making the offer: This is where the rubber meets the road. Once you find your dream house, the next step is to make an offer. When writing an offer, make sure to list what you want to be included in the house (curtains, appliances..) and when would you like to close the deal. There are all kinds of theories as to how the offer should be made, and how much you should negotiate. Discuss with your family and the realtor if there is room for negotiation or if the owner is motivated to sell at a lower price. Indians are known for negotiations; however, avoid low-balling to the point that it offends the seller. The process may involve counter-offers and further negotiations, which is always fun.

The wait: Once both the parties agree upon the final closing price and the closing date as a part of the negotiation, the count-down to the closing date starts. This wait is generally a few months. During this period, the whole deal could fall apart due financial or other property issues. So, it is not over yet.

Home Inspection:It is always a good idea to have the house professionally inspected to avoid future surprises. The house inspection includes making sure that house structure has no issues including any problems with roof, plumbing, electrical work or any other problems with the house. A good house inspection costs a few hundred dollars, but is good for better sleep at night and to avoid future nightmares.  

The closing: This is day of reckoning, when the house is officially transferred to the buyer. You get the key to your new house, the garage opener and big loan to pay over years to come . The seller and the buyer get to sign hundreds of pieces of paper. The closing agents and the realtor make the closing process pretty transparent and it takes only a few hours.

The house warming party: Let the fun begin. Many people perform worship and religious ceremonies to purify the house followed by a celebrations and party. Others believe that whiskey and Scotch are the best way to start, and kill any germs. Reward yourself for the hardwork.

There you have it – a big house, a big mortgage and the the American dream! Long live the capitalism!

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