Since purchasing a home is one of the largest investments you will probably ever make, it pays to be as well informed. Homebuyers should ask the key questions that follow.
Why are you selling?
This question allows the buyer to know how motivated the seller is and how
flexible they may be on the price and terms of the sale. Often, it is not
disclosed for personal reasons. If the sale is due to an upcoming foreclosure,
a buyer must complete the sale before the foreclosure deadline. Retirees that
are selling may be willing to help with financing providing them extra money
each month.
How Did You Determine the Price?
If you have done your research as a buyer and with the help of your real estate
agent, you will know what comparable homes are selling for. Some sellers set
their prices based on the amount of money they need to pay off mortgages and
debts they owe. They may have priced their home by taking into consideration
the amount they paid for the home plus any improvements they have made which
may have no actual market value. You need to determine if the asking price
is realistic.
What Was Your Purchase Price?
Knowing the sellers purchase price may allow for some flexibility. If they
have been living in the home for many years, the price was far below the cost
of houses today and that may give you a better chance to negotiate. There
are also circumstances where the seller overpaid for the home when it was
purchased and unfortunately this comes to light when they try to sell. Depending
how motivated the seller is, they may have to take a loss to complete a sale.
You should be able to check with the local tax assessor's office for this
information as well.
Have You Reported All Known Defects on the Disclosure?
Most states, by law, require disclosure statements by the seller. The buyer
takes this into consideration when making a purchase offer. Having an inspection
contingency clause in the offer allows the buyer to make repair negotiations
with the seller, get a refund on a good faith deposit or to go ahead with
the sale knowing defects are present.
Are There Any Projects Planned That Will Affect This Home?
The listing agent, seller or your real estate agent should be aware and provide
information on any proposed projects such as street repair and widening, zoning
or any such major changes that may affect your property.
There are many factors when choosing a home and not every home is perfect
but it pays to get as much information as you can in advance of purchasing
a home.
