Are you a first time home buyer? Here are 5 GREAT questions you should ask before putting in that first offer on a home.
Have you considered the following questions when buying a home? How much are closing costs? What may be wrong with this home? Why is it still on the market? How is the neighborhood? How much have other homes sold for in this area? What is included with the sale of this home?
Get the answers to those first time home buying tip questions. Also be sure to leave a comment below for other questions you may want answered before buying a first time home. I'm here to help answer those questions, so stay tuned!
How long has the house been on the market? The longer a house sits on the market, the more motivated the seller will likely be to make a deal. This means you might find flexibility to negotiate the price, contingencies, terms and credits for replacing outdated carpet or other noticeable issues.
Many times, a home will languish on the market if it was priced too high at the onset, resulting in the need for multiple price reductions. A listing that shows multiple price cuts and has been sitting on the market too long may give buyers the impression that something is wrong with it. But that is not always the case, they may have just over priced it when they first listed it. And that gives you a prime opportunity to negotiate a deal on the price, closing costs and repairs. How much have homes sold for in the neighborhood?
Understanding the current local market in that neighborhood will help you determine whether a seller’s asking price is reasonable — or way too high. Your realtor can pull the comparable sales on similar homes sold around that area homes and homes that are currently on the market so that you have comparisons to find out if it is over priced or not.
How much will I pay in closing costs? The down payment isn’t the only cash you’ll be paying on closing day. You’ll also be responsible for closing costs, which typically include loan origination fees, and third-party fees for title research, processing of paperwork, an appraisal, inspections and other administrative tasks. Expect to pay around 2 percent to 5 percent of the home’s purchase price in closing costs. The closing disclosure, which a lender is required to provide you three business days before closing, will spell out all your loan fees and how much cash you’ll need to close. Make sure you realtor looks this over to make sure no other fees such as inspections were left off.
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 don’t know — can lead to major issues later. That’s why it’s a good idea to get a home inspection done by a professional home inspector as soon as a purchase agreement is signed. You’ll normally have a time frame to get any inspections done after you’ve signed a purchase agreement. 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.
What’s included in the sale? Anything that’s considered a fixture is typically included when purchasing a house — think cabinets, faucets and window blinds, light fixtures. However, there could be items that you think are included but actually aren’t. This depends on your state’s laws. The listing description should spell out anything the seller is not including, but that’s not always the case. So make sure to ask in your offer what is (and isn’t) included with the home. Do you really want that washer and dryer, or that stainless-steel refrigerator? Confirm whether the seller is willing to throw these items into the deal.
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