You've found your next hometown: Anywhere, U.S.A. And it's perfect: quiet, idyllic, safe, and best of all, filled with big and beautiful homes. Your dream town identified, you jump in the car in hot pursuit of your new home. And after an exhaustive search, you find it. So you start negotiations, close the deal, and move into this veritable paradise.

Then it's time to go to work on Monday morning.

That's when you sit on a freeway for an hour and 30 minutes, fuming. But it didn't take you this long to get around when you were house-hunting. Why? Because there's one thing -- one very big thing -- that you didn't consider when you were ogling your prospective home through rose-colored glasses: You were house-hunting on a Saturday. When you're looking at homes during the weekend -- as most of us do -- it's easy to be fooled into thinking that your prospective home is merely a short hop down the freeway to your job. That's why Fred George, a Realtor for 30 years and now a first-time author, recommends making the drive from that home to your place of work on a Monday during rush hour. See what the commute is really like. Ninety minutes in bumper-to-bumper traffic could make that domestic paradise you're considering seem just a little less rosy.

Although this reminder might seem obvious, it's a point many homebuyers overlook. On the surface, it seems minor, but this -- and many other scenarios -- can turn your dream home into a nightmare. George, who works for Puritan Realty in Plymouth, Mass., is not only a Realtor; he's also a buyer agent, a licensed real estate broker, and a builder of single-family homes. After seeing first-time homebuyers (including himself) fall victim to every pitfall in the book, George decided to compile some eye-opening advice into a book, "How to be a Smart First-Time Home Buyer" (printed format, $9.95; online format, $7.95). Written in "layman's terms," George's book is refreshingly frank and to-the-point. And when you're finished, you'll be asking yourself, "Why didn't I think of that?"

George recently spoke to AgentNews about some of the most common mistakes first-time homebuyers make, all of which he covers in his guide. He also passed along a few tips for keeping those rose-colored glasses off during the home search process.

A.N.: What spurred you to write this book?
F.G.: After being an agent for 30 years, I'd seen plenty of people running around with no sense of order. They open the newspaper, find some listings, and then they drive around not really knowing what they want and where to look for it. At the beginning, they say they want a three-bedroom Cape Cod and end up buying a four-bedroom ranch-style. My main intention with this book was to get first-time homebuyers to sit down and make a wish list before they search for homes -- to be realistic and narrow down their choices. Husbands and wives often want different things in a house, for example, and they need to discuss those things first. Determine what you're looking for, where you want to be, and what your priorities are.

A.N.: How long has the book been out, and how are you marketing it?
F.G.: I've had the book advertised on our company site for about a year. I've been distributing copies to mortgage companies -- they buy them to hand them out to buyers. I've also been distributing the book to banking institutions and making appearances at trade shows.

A.N.: Take us through some of the pitfalls to which first-time homebuyers are falling victim.
F.G.: They often don't know whether to deal with a sellers' broker, buyers' broker, or a dual broker. A lot of brokers will have them jump in the car and look at 20 properties at once. After looking at all of those properties, the homebuyer ends up even more confused than when they started.

A.N.: What about home inspections?
F.G.: Homebuyers should get a qualified inspector to look at the home they're considering. If you can, use a professional engineer with a degree in structural engineering. You pay more, but at least they're qualified. You don't want to use a guy in a pick-up truck who says everything's fine, and then six months later, it isn't. This is the biggest investment you'll ever make.

A.N.: Any advice regarding financing?
F.G.: It's a good idea to obtain an attorney before the sale to outline the terms and conditions. Consult a bank for a list of the attorneys they use for escrow closings. Those are the attorneys who can best represent your interests. Some attorneys do just one or two of these a year. As far as financing, get pre-approved. A lot of first-time homebuyers don't recognize the difference between pre-approved and pre-qualified. Pre-qualification is all theoretical. And then when you get into the nitty-gritty -- the actual pre-approval process -- they drop the figure down. With pre-approval, they go through your financial records, they run all credit, and you get a figure in writing. You pay for it -- usually a couple of hundred dollars or so. But with pre-approval, you'll get a HUD sheet with attorney's fees and your other expenses listed, so you'll be prepared. A lot of people are surprised by the costs at closing.
And a lot of people ask me, 'How much money should I offer?' When you get a list of attorneys, get a list of certified appraisers, too. And get the appraisal listed as a condition.

A.N.: In your guide, you say homebuying is such an emotional decision that many people don't consider the little things that can snowball later. Tell us about some of those mistakes.
F.G.: I've seen people out there buy houses because they liked the wallpaper -- that's how I got a buyer for my house. They don't do their homework, they don't know the town or the neighborhood, and then after they move in, they find out their kids have a one-hour commute to school. A lot of people love the way a house looks outside -- they judge it by the landscaping -- and structurally, it's unstable. Or a house could look terrible outside but be sound structurally.

A.N.: What do you recommend in those cases?
F.G.: I'd ask the buyer if he's handy around the house.

A.N.: You steer first-time homebuyers away from building their own homes. Why?
F.G.: If you're married, you'll be divorced by the time the house is finished. It can be daunting -- you have to make up your mind about where to put electric sockets, cable TV, things like that, and you have to decide then and there. You can't tie up the workers because first of all, they're getting paid by the hour, and tradespeople are on a schedule and want to follow each other. You can create a snowball effect. There are always delays, and you always run over budget. I ran $20,000 over when I built my house. I started with plans for a 10-by-12 porch and ended up with a 16-by-16 family room. We spent $5,000 in windows alone for that room. The first-time home should never be your dream home.

A.N.: Do you recommend building later, after the first house?
F.G.: Maybe later, if you can live through the nightmare. It can cause headaches and ulcers.

A.N.: You offer some tips for condo buyers, as well. Are there any issues particular to this market?
F.G.: People don't familiarize themselves with condo association rules. And they need to take a look at the association's financial report. Find out about the contingency fund. This fund is collected from residents, but sometimes it's operating on a shoestring. Then the association will run what they call a "special assessment," which often results in repairwork for which all of the residents have to pay. I know of a condominium complex that came under new ownership. Until then, the association's fund had been run on a shoestring. When the new owners took over, the association conducted a special assessment of the roof, and every resident was hit with a $7,000 additional charge that month to pay for roof repair.

And a parting word of advice from this seasoned veteran (as taken from his book): "Most first-time homebuyers are under the assumption they will stay in that house forever. This is rarely true. America is a mobile society. People move because they need more room due to increase in family size, job relocation, etc. The main thing to remember is that it is a place to live and raise a family. Nothing is etched in stone; knowing this going in will make you a better consumer."

For a summary or to order a copy of "How to be a Smart First-Time Home Buyer," check out Puritan Realty's Web page at http://www.ahoy.com/homebuyer

Published: January 21, 1998

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