New home buyers BEWARE….

If you are looking to buy a house for the first time, be VERY careful. It is all over the news and media that it is a great time to buy a home, especially for first time buyers. With interest rates down and all the tax incentives, many young people are taking advantage of these deals. If you decide to buy for the first time, here are a few tips to think about.
No matter what the realtor says, insist on a full inspection and survey. Even if it cost a little more, do it. When I bought my first house 20 years ago, it was the standard. I would not have thought of it, but I had a good realtor that was looking out for my best interest. Just to let you know what can happen if you don’t, here is a horribly true story. My daughter bought a house 1 year ago. She was 20 yrs old with a 9 month old baby. She contacted the selling agent and the nightmare began. Jennifer is an intelligent girl, but unfamiliar with buying a home. I live across the country and guided her as much as possible, which was not enough. I assumed that there were laws and requirements that the realtor had to fallow. Anyways, a year later the board of health shows up at her door and states that all 11 houses in here area, including her’s, does not have a proper septic system and is draining raw sewage in the river behind their houses. They will probably be condemning the houses unless a pricey new system is put in. It was my understanding that the law required a functioning septic in order to purchase/sell a house. Not to mention the bank financing a home knowing that this was not checked. Even in the extremely rural part of Wyoming were they used to use old cars and anything they could find as septic tanks, has even passed strict regulations for septic systems. Why wouldn’t Indiana, especially along a river?
When it comes to the inspection, have it completely detailed and review it carefully before signing any papers. Do not be afraid of asking questions. Remember, it is your money and your family’s future. When Jennifer bought her house, the inspection was lame. The only things that were required to be completed by the mortgage company was to spackle and paint a crack in the ceiling, patch a spot on the roof. Also painting some door trim. Superficial items are irrelevant and a full inspection would have found the major damage in the roof. After part of the roof fell in two months ago, they found a lot of mold. Luckily the septic issue came about before the new roof went on because Jennifer is not in a financial position install a new septic. She will probably let the bank take the house back.
This is another issue. Jennifer has done very well regarding her credit and now she will probably have to file bankruptcy. Why would any bank finance a house without covering their own interests? Now they will have to pay for the repairs or take the house back. Even if Jennifer lets the house go, the bank would have to do these repairs in order to resell the property. This is going to be a long battle.
When it comes to a realtor, get your own. Do your research and get referrals from family and friend that have used a particular agent. By have a realtor of your own, they will look out for your best interest and not just the sellers. Jennifer and I trusted in the laws and ethics of realtors and used the seller’s agent. Dwanette Stokes of Premier, Inc only wanted to make a sale and collect her commission. I do not understand how any human being could do this to a younger single mother trying to better her family’s life. I have contacted the National Association of Realtors, Indiana Attorney General and the local news stations. Dwanette Stokes and First Choice Bank in Ft. Wayne have wrecked my daughter’s life and my goal is to make them pay for their unethical activities. I plan on causing enough commotion that something gets done.
Basically what it comes down to is, do your homework, ask question and do not assume anything. Take it from someone that has learned several lessons, you cannot trust even licensed professionals. If you have had similar problems or have other tips, please share them.