Peeling back the layers

Getting at the truth
As a buyer, you are now much more protected than used to be the case. If only because of the growing use of Buyer Agents, your interests are likely to be better served than either sellers or their listing agents have any real commitment to ensuring. Their job -- and rightly so -- is to get a house sold for as much money as possible and with only scant attention to your interest in acquiring a trouble-free property for the lowest possible price. Even so, there are invariably layers of history, condition, and, as it were, aspects of the property's location that are rarely as obvious as you may believe. In that what you see isn't necessarily what you're going to get, you're beholden to find ways to look beyond the immediate exterior and interior appeal.
Herein, of course, lies the benefit of having an agent who works on your behalf and will, in effect, temper your enthusiasm with a healthy degree of sceptisim about how well a listing is a wise choice. This isn't to suggest that the agent will stand in the way of helping you buy something that you like, but it does infer sufficient awareness of why you perhaps shouldn't.

The case for a Home Inspection
There are occasions when a Home Inspection may seem unnecessary, such as when the intention is to tear a house down and replace it with something else. Otherwise, though, even most listing agents now favour the idea of having a house checked out. In any case, despite some missteps when the home inspection idea was first mooted by the real estate industry, the purpose isn't so much to cast doubts on the wisdom of a purchase. Rather, the results are intended to sufficiently advise the buyer of what they're taking on and what maintenance costs should be allowed for at different times after taking possession.
The cynic in me -- and I'm not alone in this view -- is that most homeowners don't take as good a care of their houses as they could or should. (For instance, I'm personally at least guilty of not changing the furnace filter as often as the manufacturer recommends -- a fact that my son-in-law is constantly reminding me of!) Thus, a side benefit of the Home Inspection industry is that the commonly occurring deterioration in a house's condition over the years may steadily become less of a concern. (And, ahem, perhaps there's a potential for home inspection companies to offer periodical check ups. After all, this is what the new car industry tends to promote, isn't it? And this despite the fact that a great number of drivers -- myself certainly included -- have only a vague idea of what's under the hood.)
More to the point, however, the manual that most Home Inspection companies provide with their findings amounts to a crash course in house construction and maintenance -- and buyers can be only the better for it. They cannot fail to become aware of the importance of wall and floor structure; of the need for adequate and effective mechanical services (hydro, gas, plumbing, heating, air conditioning, and similar factors that make for home comfort and reliability); of the state of the roof and, as far as possible, the outside and inside cladding; and, to an increasing degree, of the ways to minimize the ravages of the elements. A well trained Buyer Agent will undoubtedly check these points when showing a house, but a subsequent home inspection will not only confirm whatever he or she notices, but also indicate the seriousness or not of everything. More particularly, the inspector is qualified -- which the agent really is not -- to open up the furnace and electrical panels, peer (as far as possible) into the walls and floors, and examine the roof more completely than a view of it from the ground permits. If you like, there's an analogy in the ideas of kicking tyres and taking a test drive -- and the more you know as a buyer and/or the more you're using an agent who knows what to look for, the less likelihood you have of, ahem, ending up with a lemon. (Or perhaps, given the illustration at the head of this newsletter, perhaps that should be an apple!)

Questions that deserve to be answered
Any seller has a right to put a house on the market, just as any listing agent can choose to describe it in glowing terms. The object of a marketing exercise is to get a place sold, whether it gives a buyer good value or meets their needs or not. The longtime rule of Caveat Emptor (Let the Buyer Beware) remains at the heart of all forms of salesmanship -- and every potential purchaser ignores it at his or her peril.
Nevertheless, in acknowledging today's consumer oriented society, the real estate industry has steadily recognized its responsibility to "disclose, disclose, disclose" whatever imperfections or insufficiencies apply to a property, even if the argument is simply a reflection that to do otherwise runs some risk of comebacks on the seller-client Thus, anything that materially detracts from the value or suitability of a property will, one way or another, be mentioned either within a listing's description or in such supporting documents as a Sellers Property Information Statement (the SPIS). In a sense, this underscores the approach a Buyer Agent (not to mention a judicious buyer) will take. At the same time, however, there are layers that neither the seller nor listing agent is under any obligation to suggest ought to be peeled back. It's left -- and again rightly so -- to the buyer and the likes of a buyer agent to worry about their existence and to be -- or become -- concerned about any adverse impact on the wisdom of a purchase.
The specifics will, beyond all doubt, vary, but the pattern can be seen in three main questions that deserve to be raised before an offer is made.
Why are you selling?
There can be many reasons, but there ought to be an explanation that you can decide is plausible. A job transfer -- or perhaps the loss of one? Downsizing or upsizing? A new/better home instead of this one? Getting married (sometimes an engaged couple may each already own a house)? Surplus property (e,g, giving up a no-longer-needed cottage or weekend retreat)? A divorce? An estate sale? Financial setback or restructuring? Of course, you may not necessarily be told the truth. However, there should be some indication that the seller isn't simply trying to unload an unwise choice on you. Indeed, if all else fails, you can always ask if there's some good reason why the seller shouldn't have bought the place in the first case.
What did you pay for the house -- and when?
The owners may prefer that you don't know but, if nothing else, the information can help you realize how much -- or little -- room there is for negotiation. In the case of longtime ownership, the answers may be vague, but your (buyer) agent should be able to search the local MLS system for them or at least be able to make a reasonable guess for you. On the other hand, if the original purchase was only a short time ago, it calls for some supporting -- and acceptable to you -- rationale (even it means asking the outright question as to why they've changed their minds about the house so quickly).
What are the neighbours like?
General observation should give you much of the answer, but you need to know whether your (family) situation and lifestyle are going to be compatible. Are there too many young children in evidence, whereas you're looking for a quiet place to live? Are you bothered by the likelihood of teenage rock bands and parties -- or are you about to introduce them yourself(!)? How ecomically stable do the surrounding homes and occupants seem to be? Is home ownership the norm for the area or are tenants in the ascendency?
Within the answers, too, you should be able to determine where the area is headed. Is it showing signs of age and neglect? Is it new enough to move only forward and upwards? Or is it simply well settled and mature and more than likely going to continue as a desirable address? Whatever assumptions can be made, the effects are going to be on present and future value.

 Some other worthwhile considerations
As a final layer to help you decide whether a property is as good as you're hoping it is, there are a few additional thoughts to bear in mind.
Making the right choice
The primary objective is to find a place that's going to fit your needs. It makes sense to ensure value for your money, but it's just important -- if not more so -- to choose something you'll enjoy living in. Shaving dollars by cutting out a formal dining room when you're fond of entertaining guests in some style may prove to be a false economy. Or sidestepping your need for a home office may be a decision you'll come to regret.
Certainly, we all have needs and wants, but only the latter should be sensibly cast aside to match your budget. In other words, there's no good reason why you can't buy a house that's a starting point and plan on needed improvements when you can afford them. This is a more sensible approach than letting a penny pinching exercise overtake everything else.
Trying to make a shrewd investment
Well, yes, but focusing on use and usefulness is likely to be more rewarding. Guesses as to where the market is headed are frequently no better than that. You can have some confidence in expecting the value of what you buy to increase over the years, as the history of most markets (and, without doubt, our own in Niagara) shows, but the economy nowadays has a built in volatility, not to mention factors that are largely beyond our control (or that at least we become aware of too late in the day). By all means, insist upon value and take the requisite steps to ensure it, but don't let what may -- or may not -- happen get in the way of a justifiable decision in the light of current conditions.
Putting things off
Waiting for a better time to buy or deciding not buy at all -- both have their moments, depending very much on your circumstances. But, like time itself, the market waits for no one and includes countless tales of "I could have" and "I should have."
The one and only rule is to buy when you can, what you can afford, and at the time that it makes total sense to do so.

A sufficiently close look
All told, my advice to any prospective buyer is to peel back the various layers so that they are well aware of what they're buying. Price is an obvious concern, but making sure of what does -- or doesn't -- exist is an essential part of the purchasing proces. So complete a consideration of what lies underneath the initial impression may seem unnecessary or unduly detailed, but I've yet to meet -- or end up with -- a satisfied buyer who hasn't looked beneath the surface to be quite sure of what they're buying.

With my usual warmest regards 

website: http://www.duncanpollock.com