Finding the right home involves research, so you’ll need to ask the right questions. That way you know you’re making a competitive offer on a home that you can afford — and meets your long-term needs.
Before buying a house you should try to find answer of the below questions.
- Do I need a real estate agent?
Yes. Otherwise buying a home can be stressful. A good real estate agent can alleviate a lot of that stress by keeping you informed and educated throughout the entire home buying process.
2. Do I need to speak with a mortgage lender first?
It is necessary to speak to a mortgage lender in the beginning of the home buying process. In a lot of cases people are pleasantly surprised at how much of a home they are able to afford. On the contrary, in a lot of cases some people can be disappointed in the amount of home they are able to afford. A good lender is going to be able to understand your financial situation and educate you on how much of a price you can afford, how much of a monthly payment you will have, and how much money you are able to manage in order to achieve this goal. Having this information will allow you to confidently pick a home of choice and enter into a sales contract. Being pre-approved can also be an asset to show the home buyers you’re serious and make putting a contract on a home easier in this seller’s market.
3. How long does the home buying process take?
Once you have entered a contract of sale the typical turnaround time is 30-45 days. Keep in mind it might take longer when searching for your dream home. It may take them walking through 25+ homes before they decide on the perfect one. Regardless of how long or short your home buying process takes, keep in mind it’s an important journey.
4.What are closing costs and how much are they?
Once you are under contract and settlement day is near it is important to know what you are expected at end. Closing costs are they expense of buyers and sellers to get the deal closed. From a buyers perspective it includes line items such as loan origination, title work, recording and processing fees, property survey, taxes, insurance etc. It is safe to say closing costs can amount to 2-5% of the purchase price of the home.
5. Why is this house for sale?
People buy and sell homes for a due to different reasons. New job, family relocation, the need for more space, the want to down size, the desire to have more property, etc. This is where the need for an awesome real estate agent comes in. They should be communicating with the seller’s agent to gather as much information pertaining to the sellers and the property as possible. Again, sometimes this answer is easy to obtain but sometimes not so much. It is more important is educating yourself on the property. Review all the documents the seller have provided, researching transaction history for this property in the past, pay attention during the showing-don’t just focus on the trendy flooring they picked out for the kitchen-look for areas of concern or better yet signs of good home ownership.
6. What is this home worth?
Try to do research on competitive pricing. Find answers of how much it is comparable properties that have sold or are currently on the market. Have a knowledge of how competitive the market is in the area you are shopping in. Use all the information you soak in from your real estate agent to decide on your next move!
7. How long does it take a seller to respond?
While buying a house is a very important step in a person’s life, selling a house is equally important and stressful. The response times vary. Some seller’s agents and clients are quick to respond. It could be as quick as a few hours. On the other hand some seller’s agents and clients, like to take the time to make the right decision. Respectfully, it could take a few days for them to respond. It is important that your real estate agent keeps close communication and follows up for any possible updates or questions the other party may have.
8. Do I need a home inspection?
As mentioned earlier buying a home is stressful. Get to know your property before you purchase it. Hire an experienced home inspector that can educate you on the home so you feel at ease knowing what you are buying going into settlement.
Sellers are required to provide a disclosure form listing any known defects, but what they don’t disclose and you don’t know can lead to major issues later. That’s why it’s critical to get a home inspection done by a professional home inspector as soon as a purchase agreement is signed.
The inspection report outlines the home’s overall condition and can help you negotiate future concessions, such as repairs or seller-paid credits, before closing the deal. If a home has too many problems and you included a home inspection contingency, you’ll be able to back out of the deal without penalty and get your earnest deposit returned.
9. How long has the house been on the market?
The longer a house has been on the market, the more motivated the seller will be to make a deal. This means you might find flexibility to negotiate the price, contingencies, terms and credits for replacing outdated carpet or other noticeable issues.
Many times, a home will languish on the market if it was priced too high at the onset, resulting in the need for multiple price reductions. A listing that shows multiple price cuts and has been sitting on the market too long may give buyers the impression that something is wrong with it. And that gives you a prime opportunity to negotiate a deal.
10. Is the home in a flood zone or prone to other natural disasters?
A property that’s in a flood zone or other natural disaster area may require additional insurance coverage. For example, homes that are located in a federally-designated, high-risk flood zone require flood insurance. Likewise, if you’re buying a home in California where earthquakes are common, you may need to get earthquake insurance. If you’re underinsured, you could be left footing a massive bill to repair or rebuild your home if a major disaster hits.