A home can be one of the largest single investments you’ll ever make. You’ll likely spend a lot of time thinking about whether it is the right decision and searching for the perfect place. You will do everything you can to get as much information about the house.
What are the important questions to ask before buying a house?
What questions should you ask, especially when you are buying a house for the first time?
Getting the answers to these questions will give you the additional peace of mind that you need when you make a wise purchase.
1. Why is the House Being Sold?
Your ability to negotiate will depend somewhat on the reason why the house is being sold, even if you will not always get a truly honest answer. The reason may affect how much the seller is willing to negotiate.
The reasons people move can include job relocation, a need to get a smaller or larger house, important life events or milestones (marriage, the birth of a child or growing children, death of a spouse, retirement, and others).
Sellers who have a definite reason to move out at the nearest possible time will usually accept a lower offer. When they are in a hurry to move out, there is less time to negotiate.
2. What is the Expected Budget?
One of the first questions you should ask yourself when you are buying a house:
- How much am I willing to spend to buy a house?
- How much can I afford?
Whether you are paying in cash or taking a loan, you should know how much you are able to pay. This will prevent you from running into a mortgage that you cannot pay. This will be a heavy burden, so large that it could turn into a nightmare.
A key consideration when you are deciding on mortgage payments, according to Ramsey solutions, is: “Don’t take on a mortgage with payments that are more than 25% of your monthly take-home pay.”
3. What is the Length of Time on the Market?
When a house is priced too high, it can stay up on the list for a long time. This can be considered a red flag which often is a reflection of poor strategy.
It makes it harder to sell a house that has stayed on the list for a long time because the listing becomes “stale”.
Buyers will most likely think that there is something wrong with the house. You should consider this, however, because it could be an opportunity that the seller of the house is more willing to negotiate.
4. What Was the Previous Selling Price?
It is wise to know how much the seller paid for the house because it will give you useful clues. For example, it will let you know if the local real estate market has gone up or down since the house was purchased by the seller.
It can also give you an idea of how much the seller will be willing to negotiate. If the house was bought at rock bottom, you will have a greater chance to purchase the house at a lower price while giving the seller a reasonable profit. However, if your seller purchased the home more than the asking price, they won’t most likely be willing to negotiate.
If the seller is not willing to disclose the price of the house when it was purchased, you can check the public records available at the Register of Deeds or from the Recorder of Deeds in the location of the property.
5. What Is Included in the Sale?
Make sure that you get your sales in writing to avoid disappointment and issues in the future. Typically, included in the sale of a house are permanent fixtures (faucets, cabinets, window blinds, etc.).
However, you can check on the legal papers of the house sale because the list of inclusions is usually stated. If there is no legal document that has all the inclusions of the sale, ask your realtor about how you can make a written statement about it.
It would be best to consider other items like outdoor play equipment, sheds, lighting fixtures, appliances, window treatments, wall-mounted sound systems, and other items you would be upset to find missing once you move in.
6. Are There Area Nuisances or Problem Neighbors?
Find out about problems that the seller encounters in the neighborhood, so you will not get caught unaware and be disappointed you bought the house in that location. You can also consider visiting the local police department to learn about crime statistics in the neighborhood.
Remember, you will be moving into a home where you expect to create your own peaceful private space. So, you should know what you will be expecting from the people you live within the neighborhood
Some nuisances you may encounter include:
- Speeding on community streets
- Traffic congestion
- Noise from traffic, neighbors, barking dogs, and/or nearby business establishments
- Crime
- Bothersome odors like cigarette smoke
- Poor maintenance
- Bright lights
- Litter
- Problem neighbors who may cause disturbances
7. Does the House Have Natural Hazards?
There are eight disclosures that home sellers must make. It makes sense to ask about all of them soon so that you will know about the condition of the house.
Disclosure statements help protect you, as a home buyer, from future legal action if problems with the house arise in the future.
Ask the seller point-blank if there are potential issues with the house. These are problems that the seller knows about that you can know ahead of time, so you can negotiate on repair costs.
Although the state and local laws differ in their provision for disclosure on home buyers, the 8 important seller disclosures typically include:
- Death in the home
- Neighborhood nuisances
- Hazards
- Homeowners’ Association Information
- Repairs
- Water damage
- Missing items
- Other possible disclosures
It is still best to get a comprehensive inspection before you buy a house because there may be existing issues that the seller is not aware of or the seller is not willing to disclose.
8. What Were the Past Problem Conditions of the House?
Even if the seller discloses potential issues with the property, you should also know about major and minor repairs that have been done on the house in the past. Although they have been fixed, they may still cause issues in the future.
There are regular repairs on a house that you should be aware of. Ask about regular maintenance procedures being done on the house.
Learn about how they fixed problems they have encountered like leaking roofs and drainage problems if any. This will help you prepare if similar problems arise.
9. What is the Age Of Major Components of the House?
To prepare for big expenses on repairs or replacements, know the age and condition of the major components in the house, like the roof and the cooling and heating systems.
Newer roofs may last anywhere from 15 to 50 years, depending on the roofing material. An asphalt roof lasts about 15 to 20 years, so prepare for immediate expenses if the asphalt roof is already 15 years old. Also, ask about other components like appliances, septic, plumbing, and electrical systems.
10. What Were the Major Repairs and Renovations Made on the House?
If you don’t like to pay for expensive repairs and are stressed about having to deal with house repairs, know how the house received these services in the past.
You can ask who performed repairs and renovations on the house if there were any. Were they done by a licensed contractor or did the seller do DIY?
Bad renovations, sketchy plumbing, and mediocre construction can cost you a lot of money.
You can ask the seller to produce a building permit for repairs and renovations. Structural improvements like additions, installing a new roof, adding/relocating electrical outlets, adding/relocating plumbing fixtures, and installing/replacing an HVAC (heating, venting, and air conditioning) system should all be accounted for.
Double-check with the local building department for repairs that were done by an earlier owner if the seller does not have the building permits.
Investopedia stated “If a permit should have been issued—but wasn’t—the building official may have the authority to force the current owner (which could be you, if you buy the house) to obtain the permit and satisfy the current code requirements. This could turn into a very costly project.”
11. What Did You Like Most?
Get your seller to talk about the house on a personal level. You might learn something that you would look forward to liking about the house. It can be these things and more: the tight-knit community, the short walk to the library, the way the sun shines through the living-room windows in the afternoon, the low heating bills, or the wildflowers that grow in the summer on the hill behind the house.
12. How Much are Closing Costs?
The most likely cost for closing is 2-5% of your home’s purchase price. For example, if you are buying a $300,000 home, you might have to pay around $6,000-$15,000. Make sure that you save money for closing costs so that you will not need to worry about where to get the amount when you need to pay.
13. How Much Do I Need to Save for Moving Expenses?
You might be caught by surprise by how much you need to pay when you move to your new house. The cost of moving will depend greatly on the distance from where you will go to the house you’re moving into.
Moving across the country or long distances will be more expensive. If you are moving because of a job offer, you can ask about a relocation package from the company. Some companies cover the cost of moving.
14. How Much Is Needed For a Down Payment?
You should consider how much you will need to pay for a down payment if you are planning to buy a house.
It’s best to save as much money as possible so that you can pay as much as you can as well for the down payment. This will save you from the heavy burden of a monthly mortgage that can take forever.
The best deal is to aim for at least a 20% down payment so that you will not need to pay for private mortgage insurance (PMI) in the future.
As much as possible, do not pay a down payment lower than 10%, so that you will not be burdened by extra interest and fees. If you are buying a house worth $300,000, you should save at least $30,000-60,000 for down payment fees.
Do You Need More Answers to Questions to Ask When Buying a House for the First Time?
If you want to be sure that the house you’re buying is absolutely “the one”, find answers to these important questions to ask before buying a house. If you have more questions in mind that we did not include in the list, research more. Asking the right questions will help you find the right home.
This way you will know that you are making a competitive offer for an important investment that is within your budget and that meets your long-term needs.
If you need more information visit us at Sprint Funding or contact us now!
