there is one Very To consider before buying a home. If you’re going to stay in the house, you need to get a clear picture of what the next few years will be like for you and your family. If the home will be an investment property, you need to understand the type of risk you are taking on.
even before you Thinking Regarding making an offer, make sure you discuss the ins and outs of the property with your real estate agent. Anything left unturned can lead to pipe burst or serious damage to the road.
Here are the most important questions to ask your agent when buying a home:
- How much will I be paying each month to maintain this home?
- Is this home in a flood zone?
- When are the sellers looking to close and move out?
- Why are the sellers looking to close up and move out?
- How is the market in the neighborhood?
- How is life in the neighborhood?
- What’s on the Seller’s Disclosure?
- Have the owners filed any insurance claims in recent years?
- Where can I find paperwork for home appliances and systems?
- Would you buy this house?
Let’s now take a closer look at why each question is important and how to apply the information you collect to your decision of whether or not to buy a property.
1. How much am I going to pay every month to run this house?
You should already be pre-approved for a mortgage, but talk to agents about how much it costs to keep the lights on. These costs can just show you How much Wiggle room is within your budget. Unusually high electricity and heating costs can also point to problems you’ll need to fix. (For example, a lack of insulation or a leaky faucet can affect utility bills.)
If you’re buying a condo, don’t guess about HOA fees. Get the details from your agent and be sure to ask if any HOA assessments are coming. New condo owners are often overwhelmed by disclosures, assessments and other high fees, so eliminate as many surprises as you can before you buy.
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2. Is this home in a flood zone?
Don’t forget to consider homeowner’s insurance when calculating monthly payments. Flood insurance, earthquake insurance, and other structures insurance will be added soon. Figure out how much it will cost to rebuild your home and factor this into any insurance payments you will have to make throughout the year.
3. When are the vendors looking to close and move out?
Sellers who are pressed for time may not have the resources or ability to wait and negotiate with every buyer who comes their way. If you know the sellers are looking to get out in a hurry, you can potentially strike a deal.
4. Why are the sellers looking to close and move out?
Sellers may need to start a new job in a new city soon. Or maybe they’re just running away from a house that can’t be saved. do a little digging as Why Sellers are selling. Your curiosity can reveal some problems that you don’t want to fix.
5. How is the market in the neighborhood?
Take a drive around the neighborhood to see if any other properties are for sale. Is everyone looking to hang out? or is everyone watching transferred to? This information is important not only for investors but also for buyers who want to wait things out and see what other opportunities arise in the sector.
Be sure to do some digging into the values of neighboring homes as well. This will help you determine what is a fair price for the home you want to buy.
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6. How is life in the neighborhood?
A home isn’t a dream home if a night train shakes the entire property at 3 a.m. Open houses don’t show damage from rowdy teens. Take some time to research the demographics of the neighborhood and who you will be living around. If you plan to flip the property or rent it out to long-term tenants, you may need to answer similar questions about life in the neighborhood.
7. What is on the seller’s disclosure?
Nearly every state in the country requires sellers to sign forms disclosing important information about the condition of the home. This form may include information that is up to a decade old. if there is Anything Wrong with the home, the seller’s disclosure form should tell you.
8. Have the owners filed any insurance claims in recent years?
Alternatively, you can ask to see the Comprehensive Loss Underwriting Exchange (CLUE) report. Only homeowners and insurance companies have access to this report, but it is easy to obtain and provide to buyers. This report will show you any insurance claims that have been made in recent years following incidents such as vandalism or natural disasters that caused damage to the home.
The CLUE report, seller’s disclosure form and other information will help you get the complete story of the property you want to buy. Without this story, you can’t confidently write the next chapters of the house.
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9. Where can I find paperwork on home equipment and systems?
Even if the home has brand new appliances and an HVAC system, check the documentation. Get warranty information on everything in the kitchen and anything that might need replacing in the next few years. Organized documents will be a great time saver if you need to call a repairman or perform a routine inspection. If the seller isn’t organized, it could be a sign of things to come.
10. Would you buy this house?
This is always a fun question to ask your real estate agent. Questioning them may reveal any hiccups (or great features) that you didn’t think about before. If your agent isn’t excited to buy this home for themselves, why would they want to show it to you?
If you have any questions about the property, don’t hesitate to ask. The more you know about your potential home or investment, the easier it will be to make the right decision.
Are there any questions you would recommend adding to this list?
Share below!
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
