Before you make an offer on a house, you need to be sure it's the right fit. But with so many choices and so much competition, how do you find the right house for you? To find the right home, you need to do research and ask the right questions. So, you'll know you're making a competitive offer on a home you can afford and that meets your long-term needs.
Here are 7 important questions to ask when buying a house to sort out the bad ones from the good ones.
How Much Money Am I Willing To Spend?
It's a waste of time to go house hunting before you know how much house you can afford. Beyond the purchase price, you'll have to factor in continuing expenses like taxes and insurance as well as larger projects like repairs and remodelling. The financial benefits of homeownership may not become apparent for several years, what with mortgage payments, taxes, insurance, and maintenance costs. Showing the seller you can afford to buy their home is a necessity if you want them to accept your offer. Meaning you need to obtain your mortgage pre-approved. Preapproval has two purposes: it informs the buyer of their financial limitations and it reassures the seller that they are dealing with a serious buyer while showing the house. As such, you'll demonstrate that you value the seller's time.
Why Is The House On Sale?
You might be able to negotiate a better price if you know the seller's motivation for selling, such as a downsizing, a work transfer, or a major life event. A qualified buyer's agent will do their best to obtain this information for you and to assess the seller's potential degree of flexibility during negotiations. Unlike a seller who isn't in a hurry to sell, one whose home has been sitting on the market for a while is more likely to be willing to negotiate on price.
How Old Is The Roof?
Roofs, while unavoidable, are inevitably pricey. It can cost a lot of money if you buy a house with an old roof and have to fix it soon after you move in. That would suck! In addition, if the roof already has damage, the lender may insist that you fix it before giving you a loan. If the roof's age is not specified in the listing's description, you should inquire about it to avoid a future hassle and unnecessary expense.
How Long Has This House Been On The Market?
Sellers are more likely to be open to negotiations after a property has been on the market for a while. Because of this, you may be able to negotiate a lower price, additional conditions and credits to replace broken tiles or other obvious flaws. If the asking price of a home is too high, it may sit on the market for a long time until the seller finally decides to lower it. Buyers may get the sense that something is wrong with a listing that has been reduced in price several times and has been on the market for a long time. Which means it's a great time to strike a bargain.
What Kind Of Prices Do Houses Often Go For In The Area?
If you are familiar with the state of the local real estate market, you can tell if the seller is asking a fair price or if they are trying to make a killing. Your realtor will be able to pull listing data for similar houses that are now for sale and ones that have sold in the past six months or so to use as a basis for comparison. If conditions permit additional negotiating, try making a lower offer or even requesting concessions such as having the seller cover some of the closing fees.
How’s The Neighbourhood?
A home can be renovated and improved at any time, but the surrounding area is fixed. If you plan to stay in the same place for the next 10, 20, or 30 years, you had better like the neighbourhood. You can learn about the neighbourhood's conveniences, safety, quality of life, and traffic conditions from your realtor. Schools, HOA regulations (if applicable), parks, and other community features may all be researched online, which is a huge help. A long drive to work could be a deal breaker, so make sure to factor that in.
Does The House Have Any Issues?
The seller must supply a disclosure document detailing any issues they are aware of. What they don't tell you can cause problems down the road, though. That's why it's so important to have a professional home inspector check over the place as soon as possible once the purchase agreement is finalised. You can use the home inspection report to bargain for repairs or other concessions (like a lower purchase price) from the seller before you even sign the final contract to buy the house. With an appraisal contingency in your offer, you can walk out of the sale if the home fails to meet your expectations and (usually) get your earnest money back.