What Questions to Ask When Buying a House?
Before making an offer on a house, you want to be sure that it’s “the one.” But with so many options out there, and so much competition, how do you find your perfect match?
That’s why we’ve put together 10 questions to ask when you’re buying a home.
What’s My Total Budget?
Don’t waste your time looking at houses without first understanding how much you can afford. There are additional costs to consider beyond just the sale price, such as property taxes, homeowners insurance, ongoing maintenance, and any renovations you want to do.
If you want your offer to be accepted, you must show the seller you have the financial means to buy their house. This means getting preapproved for a mortgage.
How Much Should I Save For a Down Payment?
If you have the money, the answer is 100%. It’s always a good move to buy in cash or put down as much money as possible to avoid a monthly mortgage that follows you around forever.
If you are getting a mortgage, aim for at least a 20% down payment. That way you can avoid paying for private mortgage insurance (PMI). However, there are programs for first time homebuyers where you can put as little as 3% down! Reach out to your local real estate professional to learn more about what you qualify for.
What’s The Risk Of A Natural Disaster?
Factoring in insurance costs on your potential new home should be a top priority, as they can add a significant amount to your monthly payments. Your lender will require you to have a homeowners insurance policy, but sometimes that might not be enough to protect you from the unique risks you face where you want to live.
Depending on where you are, certain insurance for hazards like fires, floods, earthquakes and hurricanes may be required. If there are no requirements in your area, make sure you assess the risk of a major disaster. If you don’t get these additional coverages, you'll have to pay out of pocket if your home is damaged in one of these events.
What’s The Neighborhood Like?
Asking about the neighborhood is a big one. In fact, the quality of the neighborhood was the main reason that 58% of recent home buyers chose their neighborhood. People often factor in the quality of the neighborhood, the commute to the office, the affordability of the home and how conveniently located it is to friends or family.
How Old is The Roof?
Roofs are necessary, and expensive. If a home’s roof is at the end of its lifespan you could wind up having to replace it shortly after you move in, and you could be paying thousands of dollars. If the roof has existing damage, the lender may require that it be repaired to approve your loan. If listing description doesn’t list the roof’s age, make sure to find out so you can avoid a costly home-improvement headache later.
What Appliances Are Included in The Sale?
You don’t want to move into a new home only to realize you have no washing machine. While many sellers leave behind large appliances like washers and refrigerators, some don’t. Make sure you know exactly what comes with the house, as the listing won’t always have a comprehensive explanation of included appliances.
How Long Has the House Been On The Market?
You can often find this information on listings, but your real estate agent will be able to give you the most exact date. For some people, a house that has been on the market for a long time sends up red flags, because it might seem like there’s something wrong with it or the seller is unwilling to drop a too-high asking price. If you like the house, a long listing time can be to your advantage. Sellers will be more likely to negotiate the longer they’ve been waiting to make the sale, so you may be able to get the house for less than asking.
How Much Have Homes Sold For in The Neighborhood?
Understanding the current local market will help you determine whether a seller’s asking price is reasonable or not. Your real estate agent can pull the comparable listing data for similar homes that are currently on the market, and ones have sold in the last six months or so, as a basis for comparison. That way you can make an informed decision about the house.
How Much Are Closing Costs?
For a ballpark estimate, you’ll likely pay around 2–5% of your home’s purchase price in closing costs. Make sure you save up a separate amount for closing costs before buying a house. That way, you won’t be tempted to steal the amount from your down payment.
Are There Any Problems with The House?
Sellers are required to provide a disclosure form listing any known defects. But what they don’t disclose, and you won’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 an appraisal contingency when you made an offer on the home, you’ll be able to back out of the deal without penalty and (in most cases) get your earnest deposit returned.