Buying a home involves a multitude of tasks, some more complex than others. You could roughly break it down to the financing, the home search and negotiations, and closing. Within these sections, you’ll want to be as informed as possible. This will help guide you to making the best decisions in what will likely be one of the most important ventures of your life, buying a home.
Here, we’ll provide some key questions to ask realtors that will help aspiring homeowners and investors in the home-buying process.
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Questions about the Property
When house viewing, it’s easy to become over-occupied with how the house looks especially for properties that have been staged. To make the most out of a house viewing schedule, it would help to come armed with a list of important questions to ask the selling realtor about the property.
Are there any problems with the house?
This is one of the most basic but important questions to ask a realtor when buying a home.
This becomes a very pertinent question if the property is listed for lower than other similar properties on the market. However, don’t immediately assume that there is something wrong. A house may be put on the market for lower than expected for a few reasons. It may be that the seller wishes to make a quick sale and is willing to accept lower bids to expedite a transaction. It could be the time of the year, if you’re home hunting after peak season, you may be able to get a better deal than at the height of spring or summer.
Even if the home isn’t listed under its market value, you’ll still want to know about any flaws or possible deficiencies in the property.
In Pennsylvania, home sellers are required to provide a disclosure statement to the buyer, but it also doesn’t hurt to ask your agent or even the selling agent when viewing the property.
For further protection, home buyers should always hire a professional home inspector, who will provide an independent and authoritative evaluation of the state of the home.
Depending on the inspector’s assessment, buyers may be able to renegotiate with the seller to adjust the price or fix any flaws found before finalizing the offer. Or, if the inspector finds deal breakers such as major roof issues or cracked and uneven foundations, buyers can walk away from the deal.
How old is the property’s roofing system?
The roofing system helps preserve the property’s structural integrity and can even help homeowners save money on cooling and heating systems if it’s in good condition.
Typically, a newly replaced roof can last for around 30 years. By knowing the roofing system’s state and age, buyers can have an estimate of roofing repair costs to expect in the near and further future. If there are roofing issues, buyers can either request the seller to fix them before closing the deal, adjust the home selling price, or stop the transaction altogether.
Full roof replacements can cost $11,500 for an average-sized home. Sometimes it can climb to a much higher figure so buyers need to be mindful of this part of the house before extending an offer.
How old are the HVAC and other major systems?
Buyers need to know the overall condition of the home’s HVAC, plumbing, and electricity systems. As these systems are usually hidden, it can be easy to miss asking about these systems when house viewing.
Newer HVAC models have a lifespan of about 15 to 25 years, but older ones only last for about 10 years on average. And if the house was built around 60 years ago and has not undergone major home improvements since then, chances are the house is using dated plumbing and electrical systems, which will need to be replaced for safety purposes.
Again, buyers who know the condition of the property’s systems can negotiate with the seller to make any necessary fixes or upgrades before proceeding with the deal. The buyer can also choose to handle the repair costs but on the condition of getting the property at a lower price.
Has the house undergone any major renovations recently?
Many sellers renovate or upgrade their homes before selling to attract more buyers and increase the value of the property. Unfortunately, not all renovations and upgrades are equal in quality, and poorly done renovation projects can sometimes be worse than not having renovated at all. While situations like this are uncommon, it’s still better for buyers to err on the side of caution and ask.
During house viewing, a question to ask a selling realtor is whether the house underwent major fixes or renovations. If yes, the buyer is perfectly entitled to ask the seller about the contractor who did the work. They can also ask for building permits depending on the scope of the renovation project.
Was the house checked for any health or safety hazards before selling?
Sellers and their agents are required to disclose any health and safety hazards in the property that they’re aware of. However, most of these hazards are not visible to the naked eye, such as the presence of asbestos or lead paint, plumbing issues, or insect infestation behind walls and flooring.
For everyone’s peace of mind and to ensure no nasty surprises are waiting for the buyer when they move in, it’s better to get the property checked and inspected by a licensed professional before selling.
Is the house still under warranty?
Properties that are around 10 years old or less usually have a warranty under their builder or contractor. While this factor shouldn’t necessarily be a non-negotiable when choosing a property to buy, a warranty is nice to have. It means less out-of-pocket expenses for homebuyers should there be any damage to the property.
Why has the house been on the market so long?
Sometimes, a house can have everything a buyer would want –– meticulous design and finishes, top-of-the-line features, and convenient location. Everything looks perfect and it’s being sold at a reasonable price, but the house seems to have lingered on the market longer than the average days it takes to sell a house. If this is the case, buyers should ask the agent or seller why the house has been on the market longer than expected.
There may be some rumors or a stigma surrounding the house, such as sightings of supernatural activity or bad luck for its past occupants. As amazing as this may sound to some buyers, it can affect whether a house is sold in good time or for its market value. Unlike safety hazards and tangible issues of the house, information like stigmas and rumors of bad luck are not required to be disclosed by sellers.
A possible reason for a house being on the market for longer than expected is that it was overpriced when it was initially put on the market. This would keep bidders away and the house left unsold. By the time the house listing price is reduced to generate interest, the damage has been done and doubts may already rise in the minds of buyers. If this is the case, buyers may be able to snap up a home that has not sold only because it was overpriced in the beginning.
What insurance claims have been processed by past occupants?
The property’s claim history can give buyers an idea of how much they need to allocate to insure the house. Plus, this will give them an idea of the risks that come with purchasing the property. If they see that the house has had a problematic history of roofing damage claims, it may mean that the property’s roofing will need to be replaced soon.
What fixtures and furniture are included in the sale?
Some homeowners would prefer a blank canvas on which to create their perfect home. Others may find a particular fixture or piece of furnishing charming and would want to keep it. Either way, be sure to know what will be in the home when you take ownership of it.
To avoid confusion, buyers should ask the seller or their agent what appliances, furniture, or art pieces are included in the sale, and these should be itemized.
How much do utilities usually cost per month?
Homeowners often know that they will have to save for a downpayment, include property taxes, and make sure they can afford the mortgage payments for the next 15 to 30 years. Most are even aware that there will be a sizeable closing fee. However, what they sometimes fail to take into account are utility costs. These typically include:
- Water
- Gas
- Electricity
- Trash/Recycling
- Telecommunications
It may be that there is the notion that whatever they are paying now will be similar to what they will pay in their new home. This is rarely the case unless you’re moving into a very similar home in the same area and planning to live almost the same type of life.
To get an accurate picture of your monthly outgoings, ask the agent about the property’s average utility costs over the past year. This way, buyers can make a better-informed decision and they can be sure they can shoulder these recurring costs.
Questions About Home Ownership
After asking questions about the property, from either the selling agent or your own, you may also want to find out more about the buying process.
Here are some questions to ask your realtor about the costs involved in homebuying and homeownership.
How much is needed for the closing costs?
Closing costs are the one-time fees buyers pay when completing a home purchase. These fees include:
- Appraisal fees
- Inspection fees
- Escrow account funds
- Notary fees
- Land transfer taxes
- Title insurance premiums
The closing costs very much depend on the home value but typically in Pennsylvania sellers pay for a larger portion. While buyers will normally pay 2 to 5 percent of the home price, sellers can expect to pay 6 to 10 percent.
However, this part of the process is very much negotiable and it is up to both buyer and seller to agree who should pay what or what amount should be covered by each party. This is a good time to have strong representation in your corner and having a top real estate agent may get you considerable gains.
What are other recurring costs new homeowners need to be aware of?
If you’re transitioning from being a renter to a homeowner for the first time, you should be aware of the recurring costs that come with owning a property. On top of the mortgage payments and utility costs, there are other expenses.
- Property taxes.Property taxes are calculated based on the value of the house and its location (tax rates vary per state). But generally, this can still reach thousands of dollars. It would be wise for buyers to ask their agents to find out how much the previous homeowner paid in property taxes to avoid surprises come tax season.
- Maintenance and repair. Renters typically just report any damage issues to their landlord, and the issue will then be taken care of. But for homeowners, it’s a different story. Homeowners are now responsible for looking after their property and hiring professionals as needed to fix what needs to be repaired. This means out-of-the-pocket expenses that they didn’t have to worry about back when they were renting. Most experts suggest following the 1% maintenance rule, meaning buyers have to set aside 1% of the total home purchase for annual maintenance projects.
- Home insurance. The national average home insurance cost is $1,687 per year or around $141 per month. Buyers should consult with their agent on what coverage level would suit them the most.
Questions About the Neighborhood
Aside from asking about the property itself, buyers should also ask about the neighborhood. Here are some of the questions to ask your realtor or even a seller’s agent to learn more about the place where you and your family might choose to live.
What’s it like living in the neighborhood?
This straightforward question can branch into many aspects including:
- People. The last thing homeowners would want is to live in a neighborhood with people they don’t get along with, so it would be beneficial to get a feel of what the people there are like before closing a deal.
- Noise levels. For homeowners who enjoy peace and quiet, finding out how noisy the neighborhood gets at different times is important. Are there railways, airports, or highways near the property? Are there ongoing development projects within the vicinity? During house viewing, buyers should take note of the noise levels in the area.
- Accessibility. Buyers almost always want to know how accessible the property is to schools, hospitals, pharmacies, grocery stores, and other services they need for day-to-day.
Make Homebuying Hassle-Free with 20/20 Real Estate
Now that you have more information on what questions to ask a realtor when buying a home, you should be in a position to move forward more confidently with your home-buying journey.
The team at 20/20 Real Estate is here to make your homebuying experience as smooth and stress-free as possible. Leveraging our years of experience and in-depth knowledge of the market and locality, we are committed to helping you achieve your homeownership goals.
Contact the team today at 215.357.2020 or send an email. We look forward to hearing from you!