Ask these 9 questions before buying a home

1. Ask These 9 Questions
Before Buying a Home
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2. 1. How much can I afford?
Although you may be longing for a large home in the suburbs with
acres of land surrounding it, the truth is that buying a home such as
this could be out of your price range. Dalbey said, "One of the first
things to do when purchasing a home is to talk to a mortgage lender
and get pre-approved. Find out how much you can afford before you
start looking at homes." It can be disheartening to find a home that
you really want only to find out later that you can't afford it, she
explains. For buyers who are interested in a certain home, she said,
"You will want to ask how much money you will need to put down, how
much might you expect to pay in closing costs, and whether you
qualify for any down payment assistance."
2. Can I get assistance?
For those who qualify, there are both federal and local programs for
home buyers. Dalbey also suggests asking the seller to pay your
closing costs when buying a home, noting, "You can ask the seller to
pay for up to 3% of the purchase price, so a portion, or all, of your
closing costs may be covered."

3. 3. How important is location?
This may seem like an obvious question to
many, but it forces you to take a closer
look at your specific needs and desires. For
example, if schools are important to you, it
can be a good choice to buy a home near
the schools your children will be attending.
Some careful research can help narrow
your list down to the most desirable schools
and neighborhoods. Lifestyle factors and
preferences are another major influence.
Although the suburbs offer more space and
are generally quieter, the city can be a
better option for those who prefer to be
around entertainment and activities.
4. What are my main interests?
Depending on how you answer this
question, your interests can play a role in
determining where you decide to purchase
a house. For example, if you want to be
near parks, trails, golf courses, or open
spaces in general, suburban or even
country living may be the best option.
However, if your interests revolve around
nightlife, dining out frequently, and
exploring new places, the city is more
suited to your needs.

4. 5. What are the drawbacks of this location?
For some homes, the drawbacks can harm the resale value, potentially
costing you money when you go to sell. Before you move, Dalbey
recommends looking for any drawbacks, such as a dump site located on
your way home or a nearby freeway. She notes that any drawbacks
should factor in when you are making an offer on the home. Finding the
perfect location with a less-than-perfect house on the lot may not be a
deal breaker. She explained, "… if you find a fantastic homesite with a not
quite perfect home, you can always consider making changes to the
structure. However, it is extremely hard to remove the train tracks from
the backyard of what seems like the perfect home."
6. How much under the list price should I offer on the home I am
interested in?
She suggests getting started by consulting a thorough and competent
sales agent. Dalbey notes that, "A real estate agent who represents the
buyer in the purchase of a home should prepare a comparative market
analysis as if they were listing the home for sale." Together the
prospective buyer and the agent should use comparable sales to
determine the home's value, which will lead to the best strategy to use
when making an offer on the home.

5. 7. Can I make an offer below the list
price?
Dalbey highly encourages home buyers
to go ahead and make an offer that is
lower than the list price, explaining that,
"In some cases you may offer below the
list price, and the seller may have priced
the home perfectly, warranting a full
price offer." She also says that some
situations may actually cause the buyer
to have to make an offer above the
current listing price.
8. How can I figure out a good price to
ask?
Teamwork is crucial in order to determine
an appropriate price, says Dalbey, who
explains that, "Looking at list to sale
price ratios and average price per
square foot information with your agent
can help provide a baseline for an offer.

6. 9. How old is the furnace (and other key appliances, parts, and structure)?
Dalbey suggests that you begin by asking questions about the condition of the home.
For example, she said, "Look at the Seller's Disclosure to see what types of
problems they have had, and how they have dealt with them. If they have had water in
the basement, ask what they have done to correct the problem. Look at the age of the
roof, furnace, A/C, windows, etc. to determine which items you may need to budget
for in the next few years." She also recommends an inspection, and advises
prospective buyers to "consult with the inspector to see if any corrections that the
sellers have done were appropriate. The house may look beautiful, but look beyond for
any issues you may need to deal with."
Keep in mind that you need to factor in payments beyond mortgage, repairs, and
utility bills. One cost that can make home buyers hesitate is home insurance.
Fortunately, you don't have to settle for a pricey plan, as there are homeowners
insurance plans available that cover you just as well but won't break the bank.

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