Before an offer to purchase is created, it is very important that you have been at least been pre-qualified or better yet pre-approved by a lender. We have multiple sources available for you apart from traditional banks. Depending on the type of property you are looking at obtaining it may have special requirements that needs to be mat and not all lenders may provide a loan for that property.
A Pre-approval is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right property, it is time to prepare the offer.
When you are buying a home, there are many problems that the seller is obligated to disclose. For example, in most states, it is illegal to withhold information about major physical defects on the property, but these disclosures don't always paint the entire picture of the home. Here are six questions you may want to ask that can offer additional insight about the prospective home before you make a final decision.
1) How much did the seller pay for the home? This question can, in some instances, help the buyer negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house due to market conditions.
2) Has the seller had any problems with the home in the past? It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bathroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should also check that these items were repaired properly. An inspection is always highly recommended even if its a cash purchase. No one wants to buy someone else's problems that may have gone beyond repair.
3) Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly. Is it due to family issues such as divorce or financial issues? They may be willing to accept an offer just to get it over with. Is it due to a move out of state for jobs? If there is a time constraint they may not be willing to play back and forth and want to make a deal as fast as possible. Whatever the reason it may give some insight that could help with the right real estate agent on your side.
4) What does the seller like most and least about the property? By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a very active community especially around holidays, the buyer may consider it to loud or noisy. They may be looking for something quiet for them to be undisturbed by others. It can also be a good thing if they welcome such activity.
5) Are there any nuisances or problem neighbors? Use this answer to find out about any noisy neighbors, barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you more insight on why the seller is really moving if their answer previously was quite evasive.
6) How are the public schools in the area? Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools. Even if you don't have kids of school age or aren't planning on it, this is a step that can affect the value of the biggest investment you will make. Area schools have been seen to drive property values tremendously as the demand for great performing schools with excellent programs and safety being a priority
7) Bonus- Not a question but an activity.
Talk to the neighbors. Don’t overlook this step! Remember that you’re not just buying a home, but choosing a new location to live in for the foreseeable future. That means interacting with neighbors and living in a community. If you have an opportunity to do this it will give you insight unlike any other, especially if the person has lived there for many years. Your real estate agent can assist in establishing these contacts for you. Do the neighbors seem welcoming? What do they think of the neighborhood? How long have they lived there? See what information you can glean from them before making an offer.
Knowing all you can about a prospective home, not only helps you decide if it's the home of your dreams, but what offer to make as well. Your real estate professional can help you get your key questions answered and give you advice on how to evaluate your findings.
Putting an offer on a home is very exciting, but also very stressful. Do your homework ahead of time with these seven house-buying steps so that your offer makes the most sense for you and your financial situation. This way when you SEE IT and you LIKE IT you can OWN IT.
