Shopping for a new home is an exciting process, but, if you let your emotions get the better of you, you may end up buying something that end up costing you more than just the purchase price. It’s important to try to stay rational and learn as much as you can about the property that interests you. By asking some questions designed to uncover more in-depth information about the property, you can make a sensible, informed decision.
1. What Can You Expect to Pay in Taxes?
When considering the purchase of a property, it’s important to find out how much the property taxes come to each year. In most cases, the listing page should supply the property tax history. If it doesn’t, make a point to ask the realtor for the information. While the purchase price you pay for the home will determine the percentage you’ll pay in property taxes; the tax history should give you a fair ballpark figure.
2. How Much Can You Expect to Pay in Monthly Upkeep?
Another point to consider is what you should expect to pay out each month in addition to your mortgage payments and insurance. Ask about the average monthly utility usage, so you’ll know how much extra you’ll need to set aside for gas, electric, water, trash pick-up, etc. Additionally, ask if the neighborhood has a homeowner’s association and what those fees amount to on a monthly basis.
3. How Much Does the Seller Still Owe?
Ideally, you will be better off to buy a home in which the seller has acquired a great deal of equity. Otherwise, you’re most likely looking at a short sale. In cases where the seller will have to pay to close escrow upon the sale of the home, you’ll likely have to cover the closing costs without his or her assistance. You can also forget about requesting the seller to make any repairs, prior to closing the sale. While this may be acceptable to you, depending on the situation, you should at least be aware of these terms.
4. What Have Similar Homes Sold for in the Area?
This will give you an idea of what the appraiser will report to the lender since his estimation of the home’s value will partly be based on comparable home sales in the neighborhood. Your best option is to ask your realtor to supply a list of recently sold homes in the same neighborhood.
5. How Old is the Roof?
When you begin talking about specifics, one of your primary concerns should be the quality of the roof. An asphalt roof lasts for about 15 to 20 years and costs about $7,500 to replace completely. Other roofing materials are more expensive, but they usually last longer. For instance, concrete tile lasts 35 to 50 years and is the most durable type of roofing material. A home with an older roof can indicate to you that you may soon need to have it replaced, so be prepared for that eventuality, if you choose to buy the home.
6. Are There Any Pets Buried on the Property?
This is something people often forget about when dealing with more pressing matters. The seller may forget, and interested buyers don’t usually think to ask about it. However, it’s best to make a point to ask ahead of time, rather than come upon the remains by accident. If there is a pet grave on the property, you may request that the seller removes it as a condition of the sale.
If you make a list of questions to ask, when searching for your new home, you won’t forget to pose these questions and others you may want to ask. That can help you learn as much about the house as possible so that you can make a financially wise decision. Your goal should be to buy a home that will help you build equity and amass wealth, instead of one that will keep you in debt.
