A lot of first time home buyers just rush into buying a house because they are head over heels in love with that house. However, before you sign that contract, please know that there are three primary issues that you should address upfront.
Before we delve into this further, let’s first understand what is the offering price based on? In case you are quoting a price that is 100% based on the price of the other homes that you toured, please know that those homes do not carry any weight for an appraisal until they close. Always base your offer amount on the comparable sales in the vicinity. Your offering price must never be based on the price that other sellers are asking for their homes.
Condition of the home
Ashima who offers online accounting homework help says that you must always ask for the cost of the repairs directly. Never assume that every repair will cost thousands of dollars. Moreover, you cannot voluntarily assume that you can automatically deduct the cost of the anticipated repair from the sales because the price would be adjusted keeping in view that factor.
Location of the home
The location of the house has a huge role to play in deciding the sale price of the home. You would never want to buy a home in a bad location because the resale of such a house can be difficult. Even if you can sell it, you might not get the price you deserve. So, consider this as your primary concern and pay the price according to how good the location is.
Questions to ask before buying a home
Now let us take a deeper look at some questions that should be asked before buying a home.
Anshika who offers assignment help online says that home buyers usually compare the prices of the similar homes in the proximity before they decide on a price. However, despite all of this, the asking price may be different from the actual price of the home or the price that a buyer would offer.
- What is the price paid by the seller? – Though the profit of the seller has nothing to do with the price you have to pay for the house, it is always a good idea to know about this little detail. Shashank who works with a platform where you buy college essays online says that this information will help you estimate how much the value of the property has gone up or down since the time seller invested in it. In case it is a foreclosure flipper, you will not be able to secure the financing for 3 months. You don’t have to focus on the previous sales rather just use the information as a guideline.
- What is the priced owed by the seller? – In case the seller owes way more than the asking price, then you are plausibly looking at buying a short sale. It is also possible that the seller will have to bring in cash for the closing. In case the seller has to write a check to close escrow, you will have to make the seller pay for the repairs and the closing costs. It is great for you if the seller has good equity.
- At what price the similar homes in the neighbourhood been sold for? – Anukriti Kamal who works with a portal where you pay someone to write my research paper says that this is the best indicator of the value of the home. It is because the bank’s appraiser will rely on comparable sales to calculate the value.
- What is the number of offers received by the seller? – There are a few homes that get a lot of offers. If that’s the case, your offer needs to be strong to beat the competition.
- How long has this home been on the market? – There is a chance that you won’t be able to negotiate for a discount on the price if the concerned home has been in the market for 3 months or more. In rural areas, this period can be as high as a year.
Arjun who recently took the best financial modeling course online says that it is a good idea to know about the maintenance or the structural issues in the house before opting for an offering price.
- How old is the roof?– This is important since the newer roofs have a better life expectancy.
- Type of foundation used – Askif the foundation is raised or slab. In the newer constructions, the slab foundations are more prominent. You can even ask the seller what existed in the area before the new home was constructed.
- Is there insulation present in the attic and the walls? – In colder climates, insulation is very important. Every locale sets the standards for the R factor. If you insulate the home after buying, it will bring in a lot of saving on the utility bills. However, it has no valuable impact on market value.
- Have any appliances been replaced?– It is good for the buyer if the electrical or the plumbing appliances have been replaced recently. Moreover, the problem with the older appliances is that spare parts of a lot of it are no longer available so that would mean a complete change in the line. So, beware of this cost.
How can we overlook the location of the home when you are planning to buy a home? Shashank who recently did a phenomenal SEO PowerSuite Review says that homes in the desired location are worthier than the homes in the not so desirable locations.
- Cheap now, cheapest later – When buying the house, keep in mind, one thumb rule, ‘If a home is cheap now, it will be cheapest when you have to resell it.’
- Demographics of the neighbourhood – You can talk to the agent and the neighbours to get more information on the demographics.
- How close are the schools located? – You will have kids someday, so do ensure that the schools and the playgrounds are not very far from the place.
So, ask these questions to the seller or the agent and we are sure you can come to a good home investment for your family!