7 Questions to Ask Before Buying A Home

Purchasing a home comes with many ups and downs, and there is so much information to sort through. In order to make smart decisions, there are a few simple questions to ask before buying a house that can help you to sort through the data overload and real estate jargon. The answers may change your mind about your potential home choice, yet asking these questions before you bid on a home can save you time, money and trouble and allow you to be a confident home buyer.

1. In today's market, what is the property's worth?

This is a crucial question to ask before buying a house, as realtors can't simply tell you how much to offer due to real estate ethics. However, asking them about comparable sales or 'comps' can give you a much more specific idea of what to bid.

Comparable sales are homes in your area with similar attributes to the home you are interested in that have recently sold. Knowing these prices, along with the range of high and low priced properties in the area, will allow you to compare the asking price, your bid, and the property's true worth.

To better understand the market in your area, your agent will also be able to provide you with information on the length of time houses are staying on the market. They can also tell you how many sellers are getting their initial asking price.

Asking how long your specific home choice has been on the market is also beneficial. For example, if it has been on the market for months with no movement, you may want to evaluate whether that is due simply to a slower current market or if the home is in fact overpriced.

2. Is the seller flexible on their asking price, and how much so?

Another question to ask before buying a house is how flexible the seller is willing to be on the initial asking price. Lowballing the seller could potentially cause you to lose the purchase. In order to avoid that scenario, ask their agent either directly or through your agent about how firm they are set on their price.

To keep things friendly and to circumvent offense, make sure you word these questions less like "How much less are they willing to take?" and more in terms of "How flexible are they willing to be on the price?"

Now, not all sellers are open to bargaining. It is smart to bid on a few different properties until you find one who is willing to haggle on the price if you plan is to lowball in order to get the best price.

You may want to ask a related question as well: "How willing is the seller to help pay the closing costs?" This is popular with foreclosures, since the seller (particularly Freddie Mac and Fannie Mae) is keen to sell the properties quickly. Sellers who have equity in their homes also help with these costs in some cases.

3. What's wrong with this house?

Seemingly obvious, this question that needs to be asked before purchasing a home is often overlooked. Especially with sellers who are eager to close, the home can be portrayed as being in 'perfect condition' and problems simply not disclosed. Be direct, ask if there is a problem with the house.

Issues with the house will come to light with inspections and/or disclosures, so encouraging the seller to be upfront with any problems will save everyone time and headaches. If the seller's agent required them to procure an inspection prior to even putting their home on the market, ask to look it over.

In some states, disclosure forms are required of the seller before closing. these forms would reveal any issues, existing or repaired, that the house may have or have had. In many cases this can not only give more in depth information on the home but initiate a conversation with the seller.

4. Is this home located in a flood plain?

Find out if your potential purchase is in a flood plain! Flood insurance is required when living in a flood plain, and depending on the area, can raise your overall costs significantly.

FEMA, the Federal Emergency Management Agency, hosts a free online may of the country's flood plains. Look up your potential home? to see if it is located in one of these areas, and if so, what kind of flood plain it is as there are areas that mandate different levels of coverage. You may also want to talk through this with your agent and even inquire with the county.

To determine what living in a flood plain will cost you, you also need find out what flood insurance will be. A sure-fire way to determine this is to simply ask to see the flood insurance bills of the current owner. In many cases it is possible to assume their flood insurance policy when the sale is closed.

Finding out the answers to this question will enable you to consider whether or not you are still interested in the property. Ask yourself if you are comfortable living in an area that could potentially flood, and also if you can afford the additional costs that this situation will bring.

5. Are short sales allowed by the lender?

A fifth smart question to ask about buying a home is if a short sale is possible. A short sale happens when the seller's bank gives permission for the property to be sold at a price that is less than the remaining mortgage.

In some cases, however, the needed communication between the seller and their bank has not happened prior to the home being listed as a 'short sale'. A short sale simply cannot happen with the consent of the lender, so be sure to ask the seller's agent if a short sale has been cleared for this property through their lender.

Do your research. First, ask whether or not the seller's bank has agreed to the short sale, and if, why? Are the reasons the bank is granting a short sale legitimate and are other banks in the area giving similar dispensations? These are questions to ask before committing to a close.

6. Are any foreclosures for sale in the area?

Ask your agent if there are any foreclosures in this area. This is usually not a popular question with sellers and their agents, but it is one that needs to be asked before purchasing a home. The reason is that foreclosures typically cost less, and if there is one available in the same neighborhood, why not look into purchasing it instead?

You may also be able to make a lower offer if there are foreclosures in the neighborhood, since that means that there will be price competition. Finding foreclosures in the area can potentially work in your favor.

7. Do the mechanical systems in the home have paperwork?

A final and often overlooked question to ask when buying a home is whether or not the mechanical systems and appliances in the home come with paperwork, such as purchase or repair receipts.

Unfortunately, this is something that is really hit or miss, as your seller may or may not have made it a practice to keep such documentation. However, if they are available, this type of paperwork can save you many headaches in the long run. In the event that an appliance breaks if you have access to the purchase paperwork you would be able to see whether or not it is under warranty and how to proceed. ?

For example, if the previous homeowner replaced the dishwasher right before the sale and it malfunctions a few months into you living there, having the documentation on the machine gives you more options. Additionally, projects like tile matching are made easier if you know exactly where and when the existing tile was purchased.

Asking these 7 questions before buying a home will place you in a more confident position as a buyer, and save you not only time spent haggling on unviable home options but from the hassle of purchasing a potential 'lemon'.

If you are interested in purchasing a home in New York, New Jersey, Connecticut or Pennsylvania, I will be happy to help you get a mortgage to match your dream home.