When house shopping, look for steak, not sizzle

Q. My husband and I have been together for three years, and are ready to buy our first house. It'll be a tight squeeze, but we both have good credit and good jobs. Do you have any advice about where to find bargains in houses for sale?

A. I can think of half a dozen situations in which you may pick up a bargain, and I'll start with the most common one - poor housekeeping.

You park across the street from the house, and your agent says "Now, I want to warn you, there are a lot of kids in this house, school's out, and it doesn't show too well." You can already see an old pickup in the driveway, rusted toys on the lawn, old fliers moldering under the ragged shrubs. And while you're in the house the TV keeps blaring, there are dishes in the kitchen sink, and you have to pick your way around dog toys on the stairway.

That looks like a disaster, but it might be an opportunity. Even if the housekeeping is bad, it's possible maintenance has been just fine. Most buyers will not see beyond the sloppiness. The house may stay on the market a long time, and agents have told me they estimate such a place will eventually sell for perhaps 10 percent less than true value. And remember - when you move in, the truck will be gone, along with the dog, the kids and those dishes.

Conversely, as you walk into a spotless house, try to ignore the smell of gingerbread in the oven, your own favorite music playing softly in the background, and the flowers on the coffee table. Of course such a house has probably had fine care and could be a pleasure to move into. It may sell quickly, and command a premium. But remember - when the sellers leave they will take the coffee table, the flowers, the CD player, those great speakers and the gingerbread pan. You'll be left with just three things: location, floor plan and condition.

So when it comes to house hunting, try to ignore the sizzle and concentrate on the steak. Location can't be changed, floor plan can be altered but at some expense, and the last factor - condition - can be remedied. Pay attention to roof, electric service, windows and plumbing, and always make your offer subject to a satisfactory report by a home inspector.

There are two ways of looking at location. Classic advice says it's prudent to buy the modest house on an expensive street. Such a house will hold its value and be easy to resell some day, for there are always buyers eager for that particular neighborhood.

On the other hand, the most luxurious house on the street won't ever repay the owner for the money invested. No matter how elegant it may be, buyers with that much to spend will aim at another, even more prestigious neighborhood. People are just like that. So in one way, the over-improved house represents a buying opportunity. You may be able to pick up a great deal for your money.

You can sometimes find bargains where sellers are under pressure. The sellers' agent may not reveal that the place is near foreclosure or the owners are getting a divorce, but often you can see the situation for yourself. Perhaps one parent is already on the new job in Chicago and the other is here coping with the kids alone. Or if an owner has died and the house is vacant, executor and heirs may be eager for a prompt, trouble-free winding up of the estate.

Above all, the way to buy a bargain is to make your offer promptly. The buying public is a sensitive judge of value and it doesn't leave money on the table. An underpriced property will be snapped up quickly. It's prudent to spend some time learning the market in areas that interest you, so you'll recognize an opportunity when you see one.

So then, what could you look for?

• Messy houses, if they're otherwise well maintained.

• Family stress: death, divorce, job transfers.

• Property over-improved for the neighborhood.

• The modest house on a prestigious street (perhaps not so much a bargain as a good investment.)

• And, in rare instances, property mistakenly listed at too low a price.

If you find that, don't wait to sleep on it - offer immediately. And remember that your offer will look much more tempting if a mortgage lender has already agreed to lend the money you'll need. Start right now by learning everything you can about the current market in neighborhoods you like, and get yourselves preapproved for a mortgage loan.

And have fun house hunting!

• Edith Lank will respond to questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (include a stamped return envelope), or readers may email her through askedith.com.

© 2014, Creators Syndicate Inc.