Congratulations! You have successfully followed the steps to hire a rock star real estate agent. Now is the time to start the home buying process.
Chances are you’ve compiled some preliminary research to guide your home search. Even with the general parameters defined for your search, you probably have many unanswered questions about the process.
A good agent will be able to answer your questions in detail. At the very least, they should be able to point you towards resources that can help you find what you’re looking for.
Then there are the questions you never thought to ask. If you don’t have experience buying a home it’s impossible to know how to ask all the right questions. Unfortunately, even the best agents can’t answer a question that never came up in conversation. As a result, you may end up in a less-than-ideal situation.
Fortunately, there is a solution to this dilemma.
While you may not know all the important questions to ask an agent, this post can help point you in the right direction. At the very least, it will make you a more informed buyer. On the other end of the spectrum, these questions can save you time, money, and frustration.
When buying a home, be sure to ask your real estate agent these questions.
Connected: Buying A Home: The Ultimate Guide To Buying Your First Property
What does the home buying process look like, from start to finish?
Imagine being blindfolded and asked to walk in an unfamiliar area with only a stranger’s voice.
Step by step, you have to blindly (quite literally) trust the voice that is guiding you. In many ways this is exactly what happens when people buy their first home.
Anxiety is caused by a degree of uncertainty about future events. It basically describes the entire home buying process for first time buyers – if you’ve never bought a home before, you have no idea what to expect at any point. It is important to see each step before arriving.
This is where a great real estate agent comes in handy. Your agent should be able to present a clear picture of the process from start to finish. At each major milestone, there are things an agent can help you estimate. It can be as simple as calming a person down before receiving an inspection report or as complex as preparing the right proposal.
Knowing what the process looks like from start to finish will put you at ease.
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Do you have suggestions?
Real estate is about networking.
In many ways, the phrase “your network is your net worth” applies to real estate agents. If they want to give customers the best shopping experience, it goes without saying that they need to provide great service. Part of this comes from the quality of the recommendations they can give.
As a real estate newbie, you may not have many connections in the industry. Therefore, you rely on your agent to provide you with solutions in the form of referrals. Just as a disclaimer, know that you should always compare options rather than blindly follow advice. That being said, having an agent who can provide potential team members is invaluable.
Here are some tips that you may need during the process.
before buying a house
mortgage broker
Unless you plan to buy the home in cash, you will need to find a mortgage broker. These people hold the key to your future in the form of a pre-approval letter. They look at your finances, debt-to-income ratio, credit score, and other factors to determine where you stand. Ultimately, they will be responsible for deciding how much you can borrow and at what interest rate.
Agents with connections will be able to point you toward lenders who have experience working with buyers like you.
home inspector
Most offer letters include an inspection contingency to protect buyers. This means you will need to appoint a home inspector.
Without exception, an inspector will find issues with a potential home (even new homes). As a first time buyer, seeing the inspection report can be intimidating and can even act as a deterrent. sometimes for good reason; Other times, it may be due to a lack of knowledge on the subject.
It is important to have a connection in the observation space. You need an inspector who is more realistic than an alarmist.
Connected: How to Choose the Best Home Inspector
Advocate
Real estate has a lot of legalities and thus may require the supervision of a lawyer. Some states require attorneys for the closing process. Each state is different when it comes to this, so be sure to look it up ahead of time.
In the event that you need a lawyer, you want someone who is detail-oriented and responsive. Since deals may depend on an attorney’s qualifications, a quality agent will know quality attorneys.
after buying a house
Believe it or not, owning a home means that things will inevitably go wrong. Instead of finding someone to fix problems after the fact, you should have the names ready before you even buy the house.
plumber
The most common issues found in homes involve plumbing in one capacity or another. It is important to have a plumber (preferably a team of plumbers) on stand-by so that you don’t have to wait more than a day for something to be fixed.
electrician
Like a plumber, electricians handle all that is unseen. Unlike with plumbing, you can get electric shock trying to fix it yourself.
handy person
For all other issues that may go wrong, you should get in touch with the handyman or lady. If you have a carpentry issue or a random door won’t shut, you might want to call it quits.
How old are the big-ticket items?
When buying a home, it is important that you ask an agent about the big ticket items. Investors usually refer to these as capital expenditures. During an open house or showing, you should be sure to find out the age of these ticking time bombs.
A great agent will have the knowledge of what to ask and what items to look for. Here are some examples that can be worth a lot.
Roof
As you probably know, a roof protects your home from all outside forces. What you may not know is that replacing a roof is very expensive. Therefore it is very important to know the age of the roof.
Knowing this information there are a few things you can do. For one thing, it can help you anticipate when it needs to be replaced. You can use it as a bargaining chip during negotiations or do away with it altogether, in case it needs to be replaced in the near future.
Furnace (Heating System)
Although less expensive than a new roof, replacing a furnace can be costly. By estimating how old the furnace is, you can get an idea of its shelf life. Plus, knowing how recently it was serviced can make a big difference in its current and future performance.
water heater
Do you like to take a cold shower?
Well… maybe you do. But if you’re like most of the population, it’s a worst-case scenario. Having the foresight to see the age of a water heater may cost you the price of calling a plumber early in your home ownership experience.
final thoughts
Buying a home for the first time can be stressful and worrying. Knowing the right questions to ask an agent will make you feel much more comfortable throughout the process. Good luck to you!
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Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
