The Lessons Learned From Buying a Home

• July 1, 2009

by Mark Wellborn

Keith Gibbons, author of DC Housing Prices and our go-to-guy for local real estate sales analysis, recently closed on his new home. In the latest post on his blog, Keith outlines a number of the lessons that he learned when buying the home. We highlight a few below, but recommend anyone who is in the market to read the whole post here.

Keith on knowing the market:

“I know people are waiting for home prices to fall. I did. However, understand that not all homes are alike. My experience was that condo prices are falling; wait and see is probably a good strategy. For single family homes, I found that if it’s priced right and in move in condition, it’ll sell in a week at list price. Homes with problems – original 1930s kitchen, oddly flowing rooms – will sell, but not at the original list price and they’ll take longer to sell.”

Keith on finances:

“You gotta have cash. The days of second mortgages are gone for a while so you must be able to put at least 10% down. When I applied for a mortgage, second mortgages were out of the question – the market had dried up. And don’t forget that you’ll still need cash for closing; I was told to expect closing costs equal to about 3% of the transaction value.”

Keith on buying the home, not what’s inside it:

“You’re buying a house, not the seller’s furniture, art, and drapery. You have to turn a blind eye to it – look at the room sizes, the flow of the house, and its condition. That brown bathtub – it can be replaced. That pink bathroom – it can be reglazed and re-equipped for less than $2500. That cranberry dining room – it can be repainted. That awful furniture – it’ll be gone once the seller leaves.”