What Questions You Should Ask Before Buying a Home
Buying a home may be the largest financial decision that you make in your life. You should have the knowledge of the things that you should know before buying a home. Most of the first time homebuyers consult real estate agent for buying home. If you are a first time homebuyer, then you should be very careful.
When the real estate agent ask if you have questions, you are supposed to ask something, but what? What kind of questions should you ask before buying a home? What do you need to know about a house?”
The majority of the first time homebuyers directly jump into buying a home because they have fallen in love with home. You should be patient and ask important questions before signing the purchase agreement.
Here are 3 main issues that home buyers should address.
- Offering Price
- Condition of home
- Location of home
There is a lot of information on many websites, but it may not be complete and perfect for your situation. They can’t accurately compute value on homes in neighborhood where the size and configuration are nonconforming, but it can give you a general idea of value.
Questions about Offering Price
Sometimes homebuyers compare prices of similar homes in the neighborhood before choosing a price, but the asking price may have to do a little with actual value of home or the price a buyer should offer.
- How much the seller paid? The profit of seller has nothing to do, but it does help to know if the market price of the home has gone up or down since the seller bought the home. If it’s a foreclosure flipper, you might not be able to secure financing for 90 days.
- How much the seller owes? You are looking for buying a short sale or the seller will need to bring cash to closing the short sale if the seller is asking more than the asking price.
- At what price the similar homes have been sold in your neighborhood? This is the best tool that can guide you about the bank’s appraiser, it will rely on those comparable sales to compute value.
- How many offers have been received? Some homes may have multiple offers. In this case, your offer must be strong to compete the other offers.
- How long the home has been listed on the market? If the home is listed recently, you may not be able to negotiate but, if the home has been listed for a longer period then you might have a chance to negotiate the short sale.
Ask About the Condition of the Home
If you know that the home has not been properly maintained or has structural issues, you should take those problems into consideration before choosing and offer price.
- What is the condition of roof? Brand new roof has the expected life about fifteen to fifty years or more, depending upon the material used to make the roof.
- What is the type of foundation? Homes with raised foundation allow access under the home to reach plumbing and electrical, as homes do with basements. Slab foundations are more common in newer construction.
- Does the home have insulation in the walls and attic? In colder climates, insulation is more important, and each local sets standards for the R factor.
- Have appliances or systems been replaced and, if so, when? It’s a plus factor if older plumbing and electrical have been updated. Moreover, some older appliances can’t be repaired because parts are no longer available.
Ask About the Location of the Home
In real estate, one routinely hears it’s all about location, location, location. Homes in desirable areas are worth more than similar homes in locations not so desirable.
- What types of other properties are located nearby? If the homes is located near industrial area, it will lower the price of home. Apartment buildings, commercial and industrial lower the value of residential around them.
- What are the neighborhood demographics? Some title companies can supply this information, but your best bet is to talk to the neighbors, followed by asking the agent about the area and doing research at the library.
- Where are the schools? Schools are a huge concern to parents with small children. In California, even if you buy a home within the boundaries of certain school districts, there is no guarantee your children will get in to that school.
- Are there nuisance factors? Traffic from nearby restaurants or stores may be an irritant. With freeways in the distance, you might not hear the noise during the day, but as night falls, the clatter and constant humming may get louder. Even barking dogs can drive person nuts.