You’re a grown-up, but you still need a crib. And finding an apartment or a house can be a nail-biting prospect. But you’re ready—because you have a caring and responsible roommate; a list of ideal locations and the amenities that matter to you most; and a comprehensive understanding of renter’s insurance. Wait, you don’t? Well, at least you have this book.
On the following pages, you’ll get all the info you need to land your dream pad. (Warning: “Dream” may rapidly downsize once you learn the true cost of apartments with walk-in closets.)
Ready to find a roost that rules? Let’s get moving.
Should I live here?
Just because it has a working shower—which, by the way, did you check?—and isn’t located above your parents’ garage doesn’t mean it’s the place for you. Before you sign on the dotted line, ask yourself these 10 make-or-break questions.
1 | Is it in my budget?
You need to determine how much you can afford in rent while meeting your other obligations, including socking away savings. A rule of thumb: You shouldn’t pay more than 30 percent of your gross salary (meaning before taxes) in rent. So if you are making $30,000, don’t sign on for more than $750 a month. You also need to factor in utilities if they aren’t included and other expenses, like parking. Do not assume that once you move you will develop a cheaper lifestyle—the housing equivalent of buying jeans two sizes too small because you are definitely going to start exercising. “Lots of people say something like ‘Oh, it has a nice kitchen. I’ll cook more and spend less money eating out,’ ” notes Janel Laban, the executive editor of the website Apartment Therapy. “But life usually gets more expensive, not less.” In short: Have a firm maximum price, and don’t look anywhere that exceeds it.
2 | Is it close to my workplace?
Your commute can determine whether you have a great day or a Terrible, Horrible, No Good, Very Bad Day. Even a rain-head shower won’t make up for the fact that it takes three bus transfers to get to your desk every morning. Before you commit to any location, test out the commute, by car or public transportation, at the time of day that you’ll typically be traveling. It’s also helpful to keep in mind where you go besides work. Do you have a second or part-time job someplace? Will you die if you can’t make the weekly trivia night at a certain bar? Do all of your friends live—and hang out—in a particular neighborhood? Map out all your favorite locales, then find a sweet spot that’s convenient to as many of those places as possible.
3 | Will I feel safe walking home from the bus stop at night?
Or will your mom be buying pepper spray for your key chain after her first visit? You may be tempted to just do a gut check, but a little research can pay off. Look up the local police blotter online, or simply call the department and ask about the crime rate in your prospective neighborhood. Think about it this way, says Laban: You spend hours online planning a vacation and looking up reviews of hotels, so why give this decision less time and effort?
4 | Does the dry cleaner close at 6 P.M.?
This can be a problem if you have to wear suits to work and you never get home before 7:30. You should consider your neighborhood an extension of your home, says Laban. “If there are no cafés or restaurants and you aren’t someone who likes to cook at home, that’s going to seriously impact your life,” she says. You may want to sacrifice square footage to afford a neighborhood that improves your quality of life.
5 | Does the apartment have (some of) the amenities I want?
Make a list of what you would love to have. (For help deciding among key amenities, see page 16.) “At first, just dream. Write it all down,” says Laban. “Then cross out what’s completely unrealistic.” (Sayonara, roof deck.) Whatever is left, put in order, and know what your top three or so priorities are. Once you start looking, you may realize that your budget is going to allow for only one. If you want a dishwasher, you may not have a view or high ceilings. But this list can also help you immensely in the search. If you have time to see only four apartments on a weekend, this must-have list can narrow down your options.
6 | Does the place fit my lifestyle?
Think about what happens regularly inside the apartment. Do you have a sister who crashes on your floor twice a month? Then maybe it’s worth taking the apartment that is a four-story walk-up but has an air-mattress-size alcove off the living room. Do you make your own clothes? There had better be a spot for a sewing machine. Are you training for a triathlon? You need bike storage (or a roomy foyer). In the same vein, don’t be shy about skipping popular amenities that you know you won’t use. A rental agent can go on and on about stainless-steel appliances and a gas stove, but if you “cook” entirely in the microwave, a pro kitchen isn’t worth paying for.
7 | What can I change?
For most rentals, it won’t be much. Paint, possibly. So ask the landlord or rental agent—whoever shows you the apartment. If you love to decorate, make sure you know the rules on nailing things into the wall, hanging curtain rods, or adding wallpaper to a bathroom.
8 | What can’t I change? And will those things drive me bonkers?
There are certain biggies you probably won’t be able to change: flooring, closet space, natural light (or lack thereof), and electrical outlets. “The ugly tile in your kitchen is always going to be the ugly tile in your kitchen. If you don’t like it now, you won’t like it in six months,” says Laban. If an apartment has dirty, stained carpet, for example, don’t assume you’ll just live with it. Move on. Or if everything else about the icky-carpet place is perfect, consider asking the landlord to replace it. When it comes to storage and natural light, the more you get, the better. Storage and organization solutions abound, of course, but you’ll have to be really clever and creative to make up for no actual closet space. Are you up to the task? As for electrical outlets, Laban advises: “It may seem like a small thing, but we all live very wired lives. If there’s a perfect corner for an office but nowhere to plug in a laptop, that can drive you nuts.”
9 | Is there a school within earshot?
Anywhere kids congregate will be noisy in the morning and afternoon. Count on it. Other noisy spots: firehouses, hospital emergency rooms, nightclubs, bars. Take those things into account when you’re scouting the block—especially if you’re a light sleeper.
10 | Do my friends think this place is a good idea or a bad one?
Ask those who know and love you best to weigh in. Maybe you’ve never lived without laundry facilities but you have an uncanny ability to spill something on yourself every time you eat. Your best friend might be able to tell you that the great apartment with the swoon-worthy balcony but no washer and dryer isn’t right for you. No friends available to see the place with you? That’s what social media is for. Snap pics of the apartment (no pretty Instagram filters allowed!) and ask for verdicts online. “It’s like taking a step back emotionally and seeing a place through someone else’s eyes,” says Laban. “Maybe you’ll find that the entryway is a little smaller and darker than you remember.”
APARTMENT WTF No. 1
YOUR FIRST STEP: Speak to the neighbor, if you feel comfortable doing so. If not, call the super or landlord. Be polite and say, “Hi, I’d like to report a building rules violation, and I’m hoping you could get back to me about it as soon as possible.”
IF THAT DOESN’T WORK: Create a paper trail. Write a letter and deliver it in a way that you’re sure the landlord received it. (Try sending it certified mail.) That way, if you need to report your landlord to a housing authority, you’ll have documented the complaint. In the letter, remind the landlord that your lease states that he is responsible for the upkeep of the building and will handle issues in a timely manner (or whatever language your lease uses).
YOUR LAST RESORT: You’ll need to write your landlord another letter and send it (again) certified mail. This time, say that if he doesn’t move the trash, you will deduct the cost of your time from your next rent payment for moving the trash yourself. But be careful: Withholding rent can backfire. A landlord could sue you. Before you take the risk, consult a lawyer first. Check with your city council or a housing advocacy group to find an appropriate attorney.
IF YOU DO ONLY ONE THING…
EGYPT SHERROD, a real estate agent, is the host of HGTV’s Property Virgins.
APARTMENT WTF No. 2
YOUR FIRST STEP: The following day, calmly talk to Lebron upstairs. The way to approach it nicely is to assume he has no idea he’s being loud. (He truly might not know.) Say, “You probably don’t know, but I can hear you in the middle of the night. Would you mind keeping the noise down?” Follow up with, “I hope you’ll let me know if I do anything to disturb you.” (So you don’t seem like you’re on your high horse about being a perfect neighbor.)
IF THAT DOESN’T WORK: Write a note and send it via certified mail. Explain that you are still having a problem with the noise and are going to brainstorm with the super or landlord about what to do. This communicates that (a) you are willing to problem-solve but that (b) you’re not going to suffer in silence.
YOUR LAST RESORT: Actually talk to your landlord or super. Explain that you’ve tried to resolve the noise situation on your own to no avail. Ask if he can introduce quiet hours in the building. If nothing works, your last option, unfortunately, may be checking with an attorney or contacting a local tenant’s-rights organization to find out what recourse you can take.
Beg, borrow—and deal
How could I find a decent apartment when I had a rock-bottom credit score and no job? Well, I got, ahem, creative. By Molly Antopol
THE SUMMER MY BOYFRIEND AND I SEARCHED for our first apartment together, we were at opposite ends of the country: I was in San Francisco, issuing directives by phone, and he was on the ground in New York, carrying them out.
I’d just finished graduate school, which meant that I had to relinquish my blissfully cheap university apartment. School was over, adulthood loomed, and my boyfriend wanted me to move into his place, a rent-controlled apartment on the Upper West Side. It was cheap, yes, but he’d lived there for almost seven years and didn’t have a single thing hanging on the primered white walls. It was a dark, moldy one-bedroom split into two by a fake wall he and his brother had engineered with a ruler and a bread knife. There was a mysterious brown spot on his sofa, shaped like Sweden.
I was nervous about moving in together and had fantasized about a bright, beautiful place with original built-ins and pressed-tin ceilings, where we’d combine our books and cook meals together in a sunny yellow kitchen with herbs growing on the fire escape. But how to get such a place when our credit score qualified us not for the apartment of our dreams but for a series of rejections from American Express, Visa, and Mastercard?
While I slept on a friend’s sofa in San Francisco, my boyfriend, a journalist, searched for apartments. Every evening, he’d take the train from Manhattan into Brooklyn and wander into open houses. Every day, he sounded a little more dejected. He looked at more than 30 apartments, where he kept bumping into the same couple. They resembled us, he told me, pale and dark-haired, only they both had jobs and decent credit: a better version of ourselves.
Then one day a new listing appeared on Craigslist: a one-bedroom taking up a floor of a brownstone. It had everything we wanted: hardwood floors, a clawfoot tub, a little nook we could turn into an office. It was way out of our price range but seemed so perfect that we decided to reach. I suggested my boyfriend wear a suit to the open house—he had to borrow one from his brother—and charm the pants off of the landlords.
Every day, he sounded a little more dejected. He looked at more than 30 apartments, where he kept bumping into the same couple.
It worked. These landlords were artists and liked the idea of renting to young, aspiring writers. That night, across the country from one another, we celebrated with beers over the phone.
Then the landlord called back. They’d run a credit check, my boyfriend later told me. I could hear him twitching over the phone as he let me know it was over.
But it wasn’t over. I had a plan. I booked a red-eye flight back to New York on my credit card, praying I’d have a job soon enough to pay the bill. The following morning, my boyfriend and I showed up on the landlord’s doorstep and begged. She looked like a sweet woman, curly-haired and freckled, standing in the entryway with a toddler pulling at the hem of her denim cutoffs.
“I’m sorry,” she said. “You both seem great, but I just can’t in good faith rent you the place. You can’t afford it!”
“Actually, I have a trust fund,” I lied. The previous night, while I’d been flying cross-country, my boyfriend had asked our friends and families to lend us money for a single day—a total of $3,000. I’d deposited it into my bank account that morning and would return it to everyone once the landlord verified my balance. “I’m a little embarrassed even mentioning it,” I said. “But a bunch of money gets deposited into my account every month.”
Something about the way she looked me up and down made me want to run home and iron all of my clothes. I knew I was lying, I suspected she knew I was lying, but there we were, an anxious, eager couple on her doorstep, and finally she sighed and said, “You promise you can make the rent?”
“I promise,” I said.
And I did. I didn’t know that morning that making the rent would mean working four jobs at once—freelance writing, a gig at a pharmaceutical company, and teaching at two dueling language schools. Or that after two years in Brooklyn, my boyfriend (now my husband) and I would head out west, realizing that our Herculean effort to land that perfect apartment ultimately wasn’t worth it, when we were working so much that we were rarely there. But I didn’t know any of that then. All I knew was that I was in love with him and with that mythical apartment and so I swore to the landlord that we could make our rent, over and over, before she could change her mind.
MOLLY ANTOPOL IS THE AUTHOR OF THE SHORT-STORY COLLECTION THE UNAMERICANS.
APARTMENT-AMENITY SMACKDOWN
Get some background on your options—on key issues ranging from flooring to A/C—so you can make the best possible decision.
CENTRAL AIR |
VS. |
WINDOW UNITS |
|---|---|---|
|
THE GOOD • Heavenly relief from the heat and cold that is consistent and quiet. THE BAD • Depending on what utilities are included in your rent, it can be more expensive, unless you remember to adjust the thermostat or turn it off when you leave. |
THE GOOD • You cool only the rooms that you need. Hooray, environment! • You might just open the windows. Fresh air is good for you! THE BAD • Unless it’s the Mercedes-Benz of window units, it’s probably noisy. • Many models leave little gaps around the edge that let in outside air (brrr) and dust (blech). |
GAS STOVE |
VS. |
ELECTRIC STOVE |
|---|---|---|
|
THE GOOD • You’re in full control. It’s hard to adjust an electric stove other than low, medium, high, but gas can be raised or lowered by tiny degrees, making it easy to keep a pot at a barely-there simmer. • It looks cool. THE BAD • It’s an open flame. Watch your ponytail and pot holders. • Heavy cast-iron grates can be hard to maneuver to clean. |
THE GOOD • Gets hotter faster. Because every inch of the electric eye comes into contact with the bottom of the pan, it’s more efficient. With gas, some of the heat wafts out into the kitchen. THE BAD • Can be difficult to maintain low heat. • If you have old-fashioned coils instead of a flat surface, they can be tough to clean—especially if the oatmeal boils over. |
HARDWOOD FLOORS |
VS. |
CARPETING |
|---|---|---|
|
THE GOOD • Oooh, pretty! • Easy to clean. • You can customize your decor and color palette with rugs, instead of having to decorate around peach carpet. • Red wine wipes up instead of staining for all eternity. THE BAD • If you have pets, their claws can scratch the wood, which means no more security deposit. • High heels are loud when you stomp around. • To make it feel cozy, you’ll need to buy a few rugs. |
THE GOOD • Friends can comfortably lounge on the floor. • Warmer on your feet in February. • You won’t see dust bunnies swirling around. (They’re just better hidden.) THE BAD • You’re stuck with it. Carpet isn’t an easy fix, so if it’s stained or heinously ugly, it can be a deal-breaker. • You have to vacuum. • Two words: cat pee. |
TOP FLOOR |
VS. |
BOTTOM FLOOR |
|---|---|---|
|
THE GOOD • You generally get more light the higher up you are (and the shorter the surrounding buildings are). • No neighbors walking overhead at the crack of dawn. • Possible unsanctioned access to the roof. (Prop the door open.) THE BAD • If there isn’t an elevator, note that groceries can get really heavy at right about the third floor. • Sometimes higher floors can have lower water pressure, since water is often piped up from the basement. |
THE GOOD • Heavy walker? Like to do Zumba before work? No problem. • If you live in a first-floor apartment with a garden, you probably have the best—or only—access to it. THE BAD • Lower-level apartments can be dark. • Oddballs and nosies on the street can see into your living room. • Drunk people on the sidewalk at 2 A.M. sound like they’re in your bedroom. • You may be more likely to have roaches or mice sneak in off the street (or through the garbage pickup, which is also at street level). |
How to read the fine-print, rental edition
Your apartment- or house-rental lease is no page-turner—more Heidegger than Highsmith—but it is nonetheless required reading. Know what to look for before you sign your life away. (Kidding!)
Make sure the landlord can’t boot you on a whim.
In most cases, he isn’t going to pull the rug out from under you. But check for any clauses that allow the landlord to terminate the lease early—and note how little notice he’s obliged to give you.
Know what you will or won’t pay for a hot bath.
Are utilities included? Which ones—electric, gas, hot water, trash collection? Make sure you understand which monthly expenses you are responsible for in addition to your rent and what the landlord covers. If you are renting a house, find out if the landlord expects you to perform any maintenance duties, such as mowing the lawn or cleaning the gutters. Bear in mind that “the landlord should be responsible for all repairs,” says Catharine A. Grad, a tenant lawyer in New York City.
Suss out wording that might leave you open to big rent hikes.
The lease notes what you will pay every month, of course, but it may also say whether the landlord can raise the rent and by how much. If you live in a city like New York, you may live in a rent-stabilized apartment, in which case the rent can increase only by a certain, regulated amount. Others are market rate, which (sadly) means the landlord can charge whatever he wants when the lease is up. You should also make sure that there aren’t any riders (meaning additions) to the lease that change the rules. “Some landlords might add a provision that there’s a penalty, or the rent goes up substantially for the month, if you pay late,” says Grad.
Check that the landlord is cool with Sir Barks-a-Lot.
Really, you shouldn’t be all the way to the point of signing a lease before you ask whether your Maltese or parakeet will be allowed on the premises. But this is your last chance to ensure that there are no misunderstandings about your pet. Will you be required to pay a higher security deposit? Do you have to refinish the floors or clean the carpets before you move out? Ask. You should have the terms written into the lease.
Determine the landlord’s definition of “wear and tear.”
Most leases allow for reasonable wear and tear on an apartment. That generally means dirt, grime, and minor scuffing on things is OK and not grounds for the landlord to keep your security deposit. But he may have a different idea. Find out what the rules are, and be sure to get them in writing. Would a nick in the bathroom sink void your deposit? What about painting the bedroom Tasmanian Teal? Some landlords may require you to return the walls to their original color to get your money back, and it helps to know that at the outset.
Find out if you can sublease or not.
“Almost all leases have a provision against subleasing,” says Grad. So don’t sign a two-year lease assuming that you can transfer it to your little brother in nine months, when you move for graduate school. And if it is permitted? Remember: You are still legally and financially responsible. So if your bro tries to roast s’mores on the fire escape and scorches the windowsill, it’s ultimately your problem.
Choose a cosigner with care.
We know…it’s insulting to need a Genuine Grown-Up (a.k.a. a person deemed to be a financially responsible adult) to cosign your lease. But if you want that sweet studio, you may not have a choice. And Mom, Dad, and your doting Uncle Pete say that they are up for it. Still, before your cosigner commits, make sure he or she knows what is involved. For example, if you live with roommates and you decide to move out after a year while your roommates keep the apartment, guess what? Depending on the terms of the agreement, Uncle Pete may still be responsible for those roommates, even though you no longer live there. “Whatever problems you create, you could be imposing on this helpful relative,” says Grad. Which could cause problems at future Thanksgiving gatherings. Not to mention that getting financial backing from Mom may also mean, surprise, that she thinks she’s entitled to decorate. So you and your loving cosigner need to be on the same page about your arrangement.
IF YOU DO ONLY ONE THING…
BARBARA CORCORAN is a real estate mogul and “shark” investor on ABC’s Shark Tank.
Renter’s and homeowner’s insurance: a primer
Yeah, we’d like to skip this part, too. We’re falling asleep just thinking about it. Except one day someone might break into your apartment and steal that sweet flat screen and… Oh good! You’re back! We’ll be quick.
RENTER’S INSURANCE
Even if your couch is really a futon and the rest of your furniture was passed down from your nana’s assisted-living quarters, you need renter’s insurance. Here are three reasons why.
1 | You do not want to pay for those Ikea Billy bookcases again. Should a worst-case scenario, like a fire, befall you, you won’t have to shell out cash to replace your stuff. (You do still have to assemble them—ugh.) If you have a renter’s policy, the provider will help you promptly replace your belongings from clothes to electronics, after you pay the deductible (generally $500 to $1,000, according to State Farm insurance). One caveat: If the damage is from a flood or an earthquake, you’re on your own.
2 | Because Clumsy Clarissa will totally sue you. You have a party. Someone slips on the spilled sangria and breaks her clavicle. If she’s a terrible friend and blames you, renter’s insurance will cover your liability, says Robert Hunter, the insurance director of the Consumer Federation of America, an advocacy group.
3 | It’s cheap. The average policy costs only $187 a year, according to the National Association of Insurance Commissioners. You can pay even less if you go with a cash-value plan—that is, it reimburses you for the current market value of your stuff (like returning a shirt that went on sale after you bought it and getting only the sale price back). If you have a valuable baseball-card collection, an original Van Gogh (the Starry Night poster does not count), or heirloom jewelry, you’ll need an additional insurance rider. The cost may vary, but it can be a small price to pay for peace of mind.
HOMEOWNER’S INSURANCE
A homeowner’s policy will pay for damage to or destruction of your structure (meaning the house itself) and your belongings (from your furniture to your bunny slippers), and it covers liability. (So if Clumsy Clarissa does a header down the stairs and sues you, you won’t lose everything you own.) Unlike with renter’s insurance, you generally can’t opt out of getting a policy. If you have a mortgage, the lending institution will insist that you are covered. Before you buy, here are three things worth knowing:
1 | You should be smart and choose a replace-ment-cost policy that will cover the total cost of rebuilding your house and replacing your belongings at current prices.
2 | If you get your auto and homeowner’s policies from the same insurer, you should reap significant savings. For more on choosing an auto policy, see here.
3 | Policies aren’t cheap—$978 annually on average nationwide, according to the most recent figures from the Insurance Information Institute, an industry group. But you can shave costs in a few ways.
• Maintain a rock-solid credit score. (Clueless about credit scores? Turn to pages 135 and 139.)
• Install safety devices. Many insurers offer discounts of about 5 percent to homeowners who add smoke alarms and dead bolts to their homes. That’s easy enough—and, you know, safe.
• Boost your deductible. Increasing it from $500 to $1,000 should save you a bundle on insurance costs every year.
APARTMENT WTF No. 3
YOUR FIRST STEP: First check to see if your landlord has the right to raise the rent. He probably does, if your lease is up and there aren’t any local laws (such as those in New York City) to protect you.
IF THAT DOESN’T WORK: Negotiate. Landlords generally like it when tenants stay put. They save money on cleaning, repainting, and showing the apartment.
YOUR LAST RESORT: Alas, you might have to move. If you have a very good deal and the market rate is substantially higher than what you pay, you’re probably out of luck. It’s still worthwhile to call and ask. Say, “I’ve been a great tenant and can’t quite pay this amount. Can you work with me?” Caveat: You’ll probably have more wiggle room with an individual person who is the landlord than with a huge management company.
Buying a home: what you need to know
Excited?! You should be. And a bit daunted, too. After all, this is one of the most complex and pricey things you’ll ever do—and that includes your dual Russian-literature/military-history degree. Happily, these handy tips will guide you through every step.
Stage 1: How to make your best offer and negotiate the close
BID SMARTLY. There’s no rule of thumb for what your initial offer should be or how many times you should go back and forth with the seller. Most inexperienced buyers simply make a bid that’s a certain percentage—say, 10 or 15 percent—off the listing price, says Ilyce Glink, the author of Buy, Close, Move In! But that’s not always a wise strategy. The smarter move: Ask your real estate agent for prices of comparable homes in the area that have recently sold. Use those figures to determine the max you’re willing to pay, then submit a bid that’s a tad lower. Next, start haggling.
MAKE CLEAR DEMANDS. Be up-front about extras—those polished-nickel bathroom sconces, the dramatic velvet living-room curtains—that you want included with the house.
USE THE CLOSING DATE AS A NEGOTIATING POINT. Be flexible if you can. “As long as you don’t need to relocate by a specific date, you’ll possibly get other concessions from the seller that won’t cost you anything,” says Glink.
ASK THE SELLER TO BUY YOU A HOME WARRANTY. A good one will run about $300 to $400. It can cover the cost of repairing or replacing appliances and major systems, such as plumbing, for a year after closing.
Stage 2: How to get a mortgage
ASK FOR REFERRALS. There’s no one easy way to find a lender, so try hitting up friends and family for recommendations. (You want someone known for good customer service.) Or ask your real estate agent for loan-officer suggestions. And make inquiries at local credit unions, whether you’re a current member or not. They often have rock-bottom rates if you qualify for membership, and it’s typically easy to join.
CALCULATE YOUR DOWN PAYMENT. To avoid having to buy private mortgage insurance, you need to pay at least 20 percent of the purchase price before closing costs. (Ouch, we know.)
OBTAIN QUOTES FROM FOUR TO FIVE TYPES OF LENDERS. Consult with mortgage bankers (who work in-house with big institutions, like J. P. Morgan Chase and Wells Fargo) and with mortgage brokers (who shop around with all lenders) to get the best interest rate. Also, check with your local credit union, online mortgage companies, and local or regional banks. Ask each loan officer how much her institution charges for closing expenses, including the underwriting fee and the cost of faxing documents. Make sure you are dealing with someone who is accessible and willing to take the time to explain the loan-approval process. That kind of person is more likely to be straight with you about all the costs. And remember to ask the lender if putting more money down can land you a better rate.
DECIDE IF YOU WANT TO PAY POINTS TO LOWER YOUR RATE. Sometimes a bank will let you buy prepaid interest (points, in finance-speak) in exchange for a reduced interest rate. Points aren’t cheap. Each one will cost you 1 percent of the loan amount. So if you’re buying a home that costs $209,700 (the national average) with 20 percent down, then you’ll have to pay about $1,678 per point. Don’t have that much cash on hand? Ask about purchasing a half or even a quarter point. If you’re going to stay in the house for at least nine years and you can afford to do so, it makes sense to shoulder the extra expense up-front, as it will cost you less in the long run.
Stage 3: How to have the house inspected
FIND A LEGITIMATE INSPECTOR. This is one situation in which you shouldn’t take a recommendation from your real estate agent. She could encourage you to go with someone who overlooks problems in order to make the deal go through as smoothly as possible. Instead, contact a professional organization (ashi.org or nahi.org) to find an accredited, self-employed expert who has performed at least 1,000 inspections. In many states, there isn’t a licensing program, but these associations usually require their members to meet certain standards and participate in continuing education.
REQUEST A DETAILED INSPECTION REPORT IN ADVANCE. Ask how much time the inspector typically needs to conduct an analysis (an average home should take one to three hours) and what the finished report will look like. You want it to be at least 10 pages in length, and it should include photographs of anything that’s wrong.
CONSIDER ADDITIONAL ASSESSMENTS. Ask your real estate agent and primary inspector if they recommend scheduling additional inspections above and beyond the standard one. These might include analyses of the chimney, the sewer, and the oil tank and testing for mold and radon. What you need to do usually depends upon the age, the condition, and style of the house. For example, radon is problematic in some basements, but if your house has only a crawl space, you probably don’t have to worry.
GO TO THE INSPECTION. This is your opportunity to ask questions about the infrastructure of the house. Be sure to learn about the operation and the location of the gas and water shut-off valves and the breaker box.
Stage 4: How to address the physical defects
GET WRITTEN ESTIMATES FROM ANY CONTRACTORS YOU’LL BE HIRING TO PERFORM HOUSE REPAIRS. Your real estate agent will submit to the seller the anticipated costs for any problems found during the inspection.
ASK FOR A PRICE CREDIT. You can control the quality if you have the repairs done yourself. Request that the cost of any fixes, whether large or small, be deducted from the sale price and have the work done after the purchase is final.
Stage 5: How to hire an appraiser and buy title insurance
HAVE THE PROPERTY APPRAISED. To determine its value, you need an appraiser. But generally you can’t hire one; your lender does this. You can, however, help the assessment go smoothly. Ask the seller to be present so that any questions the appraiser has about the home can be answered. He also should have a copy of the sales contract to verify exactly what is (and isn’t) being sold.
TELL YOUR MORTGAGE BROKER TO PROVIDE A LIST OF COMPARABLE PROPERTIES. Point out where the home being appraised has been improved (like renovated bathrooms) and how that differs from other recent sales.
Stage 6: How to navigate the closing process
CONSIDER HIRING AN ATTORNEY. In some states, it’s not customary to hire a lawyer for residential purchases. “But even in those areas, you should get a lawyer if your situation is complicated or if you’re buying a foreclosure or a short sale,” says Glink.
LOCK IN YOUR INTEREST RATE. See here for more details.
OBTAIN A DETAILED LIST OF CLOSING COSTS FROM YOUR LENDER. Besides the expenses tied to your loan, you may have additional fees, such as title services and transfer taxes. This information should be listed on your Good Faith Estimate form, which the lender provides when you lock in your rate.
WATCH FOR BOGUS FEES. Some lenders charge for preparing documents, messengering papers, or even printing e-mails. It’s worth asking for these items to be removed from your bill, says Glink.
Stage 7: How to conduct the final walk-through
VERIFY THAT ALL INCLUDED APPLIANCES ARE IN WORKING ORDER. Turn on the oven, the dishwasher, the stove, and the washer and dryer. Don’t forget to make sure the refrigerator works, too.
TURN ON EVERY FAUCET, AND FLUSH THE TOILETS.
PLUG SOMETHING INTO EACH OUTLET. You’ll want an electrician to repair any broken ones right after you close on the house.
CHECK THE SMOKE DETECTORS. Light a match by each to verify that they’re in working order.
TEST THE HEAT AND THE AIR-CONDITIONING. You don’t want to find out that the furnace or the A/C doesn’t work a few months down the road.
LOOK FOR WATER STAINS AND MOLD ON THE CEILINGS. They could be a sign of ongoing leaks.
EXAMINE FOR SIGNS OF VERMIN, including excrement (mice) and insect remnants.
NEGOTIATE A CLOSING CREDIT. If you find anything broken or missing, have your broker or lawyer request financial compensation.
SHOULD I LOCK IN MY MORTGAGE INTEREST RATE?
A bank can quote you an interest rate, but until you “lock it in,” the rate can change, depending on the market. Up a fraction of a point one day, down a fraction of a point the next. Once you’ve put in a bid on a house and it’s been accepted, you lock in your mortgage rate, which allows you to hold on to a quoted rate for a limited amount of time (typically 30 to 60 days). At that point, the clock is ticking. You need to close before the lock-in period expires. But before you can close, your lender will order an appraisal and an inspection, and the seller will prepare the house or make any agreed-upon updates. “There are multiple parties involved, so you should ask your lender how long it typically takes to close loans like yours,” says Keith Gumbinger, a vice president of HSH.com, a mortgage-information site.
If your lender offers you a 30-day lock-in period but deals are taking longer than that to close, ask if you can have 45 or 60 days—and if there will be a fee involved. “Don’t be risky and wait to lock in your rate because you think it will go down. Rates may go up,” cautions Gumbinger.
APARTMENT WTF No. 4
YOUR FIRST STEP: Assume it’s an oversight; the landlord may have forgotten to send the money. Call or e-mail him, politely mentioning that you took very good care of the apartment, and ask when you might receive the security deposit.
IF THAT DOESN’T WORK: If the landlord claims there’s damage to the apartment, you pull out your photographs. Wait—you don’t have photographs? OK, back up. When you move in, take pictures of any broken floorboards or chips on the vanity, just like you would note dents in a rental car before driving away with it. Then, when you move out, document the apartment again to show that nothing else is damaged. If a landlord refuses to give back a security deposit, he’s going to have to say why. If the allegations aren’t true, you are far better off if you have proof. Send a letter outlining what was expected in your lease with photographic evidence that you complied. No photos? Still send a letter and follow up if you don’t hear back.
YOUR LAST RESORT: Head to small claims court. If you want the money back, you’ll need proof that you’re in the right. You don’t need a lawyer in small claims court, but you should bring your photos or at least a reputable friend who can be a witness on your behalf.
The ultimate moving checklist
The day is coming when you will pack up your high school yearbooks and steal your dad’s shrunken leather jacket from the 80s and move into your own place. It’s going to be amazing…well, once you get past the taping-boxes part. This step-by-step timeline will help you get organized.
1 MONTH BEFORE
PURGE, PURGE, PURGE. Been meaning to go through the 19 pairs of boyfriend jeans you own and give some to Goodwill? Now’s the time.
CALL FOR MOVING QUOTES. Start investigating moving-company options, including DIY. Before you assume a rental truck and your friends are the way to go, consider how much it’s going to run you to buy supplies (like moving blankets and dollies, which moving companies generally provide) and gas. Check with your auto-insurance company to see if you’re covered when driving a truck or if you’ll need to buy extra insurance. Get quotes from several companies, and consider looking on Craigslist or asking around for people you could hire to help you load heavy furniture, even if you’re the one driving the truck.
BE NERDY. Make a moving binder. Use it to keep track of everything—all your estimates, your receipts, and an inventory of all the items you’re moving.
3 WEEKS BEFORE
RAID THE RECYCLING. Save your boxes. Ask your local liquor store or grocery store for castoffs. Hoard newspaper for wrapping dishes and other breakables. Order any extra boxes you may need, plus padding for breakables and permanent markers.
QUIT BUYING (AND START EATING) YOUR FROZEN PIZZA. Use up things you don’t want to bother transporting, whether it’s the last few glugs of olive oil or half-empty bottles of cleaning supplies.
FIND A TAPE MEASURE. Check the room dimensions at your new place, if possible, including the door widths and heights. You don’t want to find out on moving day that your couch is too fat.
2 WEEKS BEFORE
CONFIRM YOUR MOVING ARRANGEMENTS. Select a company and get written confirmation of your moving date, costs, and other details. Or, if your plan is to rent a truck and have friends help, make sure that everyone’s schedule is clear. And ask the rental company for help in determining how big of a truck to get. Leaving your favorite chair on the corner because it won’t fit will make you sad.
PACK THE IRON. Come on, it’s not as if you’re using it. Start boxing up the items you won’t need before the move, like winter coats if you’re moving in August. (For packing tips, see here.)
CREATE A SAFE BOX. Separate out valuable items, like jewelry, that you don’t want to get lost in the back of the truck. Put them in a box or a bag that you’ll personally bring to the new place.
FILL OUT A CHANGE-OF-ADDRESS FORM. Do it in person at the post office or online at usps.com. But in case there are stragglers, it’s always wise to ask a neighbor to look out for mail after you’ve moved. Check in with her two weeks after the move.
GIVE IMPORTANT PEOPLE A HEADS-UP. Alert the following of your move: banks, your employer’s HR department, magazines you subscribe to, and credit-card, insurance, and utility companies.
ASK YOUR BOSS if you can have your moving day off.
1 WEEK BEFORE
REFILL YOUR PRESCRIPTIONS. It may take you a while to find the most convenient pharmacy or transfer medical records. So stock up on any prescriptions you’ll need for the next few weeks.
TRY TO FINISH PACKING EARLY. You want to spend your last few nights saying good-bye to your friends and your favorite manicurist, not cramming to get everything in boxes.
THE DAY BEFORE
CONFIRM YOUR TRUCK—AGAIN. Many rental companies can’t guarantee your truck until the day before, so call to make sure they have the size you need at the location you requested. If not, they should be able to steer you to another location or give you a larger truck at no extra cost.
A FEW DAYS BEFORE
SET ASIDE SOME CLEAN UNDERWEAR. Pack a bag with enough clothes to get you through a few days without embarrassment.
GET CASH AND/OR BEER. If you’re using a moving company (or just moving guys), you’ll need to have some cash for tips at the end of the day. (Turn to the appendix, Should I Tip This Guy?, See here, for specific tipping recs.) Shell out for pizza and beer for your friends.
MOVING DAY
PACK SOME H2O AND A SNACK. Moving day is like a wedding day: You never remember to eat.
KEEP CALM, thank your friends if they helped out, and make sure you don’t leave anything on the sidewalk.
PACK IT IN (BETTER)
1 | PUT STUFF YOU’LL NEED ASAP IN A CLEAR BIN.
That way, when you’re in your new digs, surrounded by boxes, you can get to your toothbrush and cell-phone charger without playing archeologist.
2 | USE THE RIGHT SIZE BOXES.
Put weighty items—cast-iron pans, your copy of Infinite Jest—in small boxes. Stow light items, like sheets and pillows, in bigger ones. Large boxes packed with heavy items make movers (whether they’re pros or pals) grumpy and their chiropractors happy.
3 | PUT HEAVIER ITEMS IN THE BOTTOM OF A BOX, LIGHTER ITEMS ON TOP.
And if you’re loading the truck yourself, pack heavier boxes first, toward the front of the truck, for balance.
4 | DON’T LEAVE EMPTY SPACES IN THE BOXES.
Fill in gaps with clothing, towels, or packing paper. Why? You want to keep an even weight distribution whenever possible.
5 | AVOID MIXING ITEMS FROM DIFFERENT ROOMS IN THE SAME BOX.
This tip just saved you 15 minutes of walking back and forth, back and forth, between your bedroom and the bathroom. You’re welcome.
6 | LABEL EACH BOX WITH THE ROOM IT’S DESTINED FOR AND A ONE- OR TWO-WORD DESCRIPTION OF ITS CONTENTS.
Number each box to make sure none went AWOL during the move.
7 | TAPE BOXES WELL.
Use a couple of pieces of tape to close the bottom and top seams, then use a nifty movers’ technique―making a couple of wraps all the way around the box’s top and bottom seams, where stress is concentrated.
8 | BUNDLE BREAKABLES.
As you pack your nicer dishes, put packing paper around each one, then wrap bundles of five or six together with more paper. Pack dishes on their sides, never flat. And use loads of bunched-up paper as padding above and below. Cups and bowls can be placed inside one another, with paper in between, and wrapped three or four in a bundle.