7 Questions You Should Ask Before Buying A Home
As you prepare to buy a home, you may be a little overwhelmed with all the information and advice you've been given. We've put together a list of 7 of questions to help you get the most out of your home buying experience.
- What is the property worth in today's market?Ask your agent about comparable sales - prices of nearby, similar homes that have sold recently. Your agent should be able to tell you what the differences were in those homes vs. yours. Keep in mind floorplan, upgrades, time on the market & location. Square footage is only one of the factors, that determines the asking price sellers have set.
- How flexible is the seller on the asking price?To avoid sending your seller an offer that can be far below what they're asking, you can have your agent ask the seller's agent how set the seller is on the list price. This is a good strategy to get into the mind of the seller and help you make the best offer on a home. A good question to ask is what the seller’s ideal timing for close of escrow is.
- What are the problem areas of the house?By all means, have a competent, licensed inspector look at the home and prepare a report. Be direct, ask about any minor and major problems in the house. If the home has been inspected and all parties are informed of any complications the house may have, this will definitely help you determine if you want to tackle some of the problem areas.
- Is this home in a flood plain?FEMA posts free online maps that will show if your possible new home is at risk for flooding. This is important and often overlooked. Depending on the answer to this question, you'll be able to discern more clearly what the total monthly costs for the home will be and if flood insurance is a necessary expense.
- Will the lender allow a short sale?A short sale means the bank will allow the property to be sold for less than the amount on the outstanding mortgage. Even if the house is listed as a short sale, be sure to ask whether the bank has approved the seller's home to be sold this way. There could be months of waiting. Be prepared.
- Are there any foreclosures in the area?Finding out about foreclosed homes in the area can help with the negotiations. It will also be a nice surprise to know of other opportunities on homes in a neighborhood you like. Foreclosed homes usually cost less, and this knowledge can help you make a well informed offer.
- Is there any documentation for appliances & cost of utilities for the house?If the house you're looking at has newer appliances or even has had maintenance done on something like an air conditioner, there may be warranties on some of those items. Also, ask about utility costs & regular maintenance issues, again to determine the total monthly costs of owning your home.
Asking questions like these will help keep home-buying headaches at a minimum and help your agent get to know what you're looking for when in the market for a new home. Being a well-informed buyer pays off even if the information isn't what you want to hear, you'll avoid buyer’s remorse and you'll be more likely to find a home you'll love!