Blog

7 Tips To Buying a Winter/Active Adult Community Home

Buying a 2^nd home used as a winter get away in an “Active Adult” community or an investment home prior to retiring can be both exciting and scary. So I’ve compiled the top mistakes made by buyers. Will most active adult communities have not been plagued with foreclosures or short sales, knowing how to avoid these mistakes will be helpful. It doesn’t matter where you are looking for a home in Mesa, Sun Lakes or other parts of Phoenix, these tips will apply.

 

1. Going shopping before knowing how much house you can afford. Home buyers often spend extensive time researching homes, and fantasizing about their dream home. Don’t start shopping without knowing how much you can afford for your home! If you are paying cash make sure you have provided some document as “proof of funds” to your Realtor. This could be a bank or brokerage statement indicating the funds are available. You can black out any account numbers prior to providing this to your Realtor. If you plan on getting a loan on the house, be sure to talk to a local qualified lender. While you might have an excellent relationship with your long term local banker, they most likely will not know the Arizona lending regulations. I suggest several lenders to my buyer clients that are familiar with the Arizona lending regulations. Give me a call if you’d like names & numbers to 2 very seasoned experts.  

 

2. Forgetting to budget for the additional costs of owning a home. Some buyers neglect to factor in the additional fees and closing costs needed to purchase a home.  Once you are a home owner you will be responsible for property taxes, and home insurance. Most active adult/retirement communities have an HOA that cover maintenance for the common areas and the swimming pools. Many have golf courses with additional fees. I can help with estimates on many of these additional costs.

 

3. Not hiring a good buyer’s agent. A good buyer’s agent will have the expertise to find, negotiate and close the best possible home choice for you. Don’t attend an open house without being represented by a Realtor. The listing agent represents the seller. So his fiduciary responsibilities are to the seller, not you as the buyer. Be sure to ask each agent about their experience (particularly if they have experience helping 55+ buyers). Proven agents should have taken additional classroom training and designations to be current with changes in the market place.

 

4. Being swept away by your emotions (and showing them!). Sellers often use inexpensive tricks such as staging or minor upgrades to play on your emotions. The goal is to elicit a positive emotional response from the potential buyer (you) and use it to sell at a higher price. Even if you do fall in love with a house, don’t show your emotions to the seller or their agent as this could give them an advantage during negotiations.

 

5. Getting your heart set on your first offer. While today’s market is a buyer’s market, competition over homes can still ensue. You may not be able to walk into a home, make an offer, and get the home. Also, don’t assume being in escrow automatically means the house is yours. An inspection needs to be performed so you can know the physical condition of the house and avoid unforeseen repairs. If you are getting a loan, the house will also have to appraise.

 

6. Having a lack of vision. Don’t reject a home because of slight physical imperfections. If the home is the perfect size, in a great neighborhood don’t let the ugly paint color in the bedroom turn you away. Remember it is often cheaper to do small changes yourself than have to pay an increased home sales price because the seller did them for you. Many of the foreclosures and vacant short sales will need cosmetic work and possibly much more. That is one reason they are offered for a lower price than a maintained home.

 

7. Compromising on important things. Go ahead and put everything you could want on your dream home list. While you don’t want to be too picky and reject a home because it doesn’t have everything, you also don’t want to accept a home that doesn’t have your necessities. It boils down to, what are your absolute “needs” vs. like to have “wants”?

 

As a real estate professional, it is my job to coach, guide and serve your best interests. If you need help or advice feel free to post a comment below or contact me directly.