Buying a home is one of the biggest investments you will make in your lifetime. It is crucial that you make sure you are fully prepared for this purchase by working closely with your realtor. These are some of the top questions you should be sure to ask before closing on a home.
1. How Long Has the Home Been on the Market?
In general, the longer the sellers have been trying to sell their home, the more anxious they will be to accept an offer. If you find out that the home has been listed for a long time, this may be a good reason to slightly lower your offer.
2. What are the Comparable Prices in the Neighborhood?
One of the best ways to find out what the range of your initial offer should be is to understand the value of other homes in the neighborhood. You should ask your realtor for a comparative market analysis (CMA), which is based on the selling price of recently sold properties in the area.
3. Is the Home Part of a Home Owner’s Association?
This information is crucial to know as a home buyer. While there are plenty of advantages of buying a home that is part of a home owner’s association (HOA), there are also certain requirements that you should be aware of. It is a good idea to read a copy of the HOA agreement before closing on a home. You need to be aware of the monthly HOA dues as well as any restrictions on your property.
4. What are the Overall Growth Trends in the Area?
It is important to know the general trends in the area because a home in an area of high growth is likely to be a better investment. If you need to sell your house down the line, there will be a bigger market, and you will probably be able to get a better price.
5. What is the Flexibility of the Seller on Price?
You may not want to start with a low ball offer because this will derail the entire negotiating process. Rather, you should find out if the seller is willing to assist with closing costs, which could reduce your out of pocket expense. Your realtor can also find out from the seller how firm they are on price and if they are willing to negotiate at all before you waste your time.