Buying a home may be stressful—we understand! There are many selections to make, it is costly, and it can be difficult to know what you should be searching for.
So, to help you feel more at ease with the home-buying process, we’ve developed a list of 15 questions to ask before purchasing a property. When you have answers to these concerns, you’ll feel much more at ease about the entire homeownership thing, and you’ll know you’re receiving a decent bargain.
1. What is my housing budget?
The first thing to ask oneself is, “How much house can I afford?” It is critical to establish a decent home budget so that you do not overspend on your property and end up with a large payment that you cannot afford. That is a formula for disaster. If this happens, your house will own you—and you must own it!
So how do you determine how much housing you can afford? Limit your mortgage payments to 25% of your monthly take-home pay (including property taxes, insurance, homeowners association fees, and private mortgage insurance). That way, you’ll have some breathing room in your budget and enough money left over each month to spend toward other key financial objectives, such as retirement savings.
With the proper agent, navigating the home market may be simple.
2. The next question is: How much money do I need for a down payment?
The best approach to buy a home is to put 100% down. That’s correct—if possible, pay cash for a property.
However, if that is not feasible for you and you intend to take out a mortgage, aim for a down payment of at least 20%. Why? A larger down payment will result in lower monthly payments, less debt, and less risk for you! Furthermore, a 20% down payment eliminates the need to pay for private mortgage insurance (PMI—insurance that protects your lender, not you, if you fail to make your payments), allowing you to save even more money each month.
If you’re purchasing your first house, it’s OK to put down 5-10% as long as the monthly payments remain 25% or less of your take-home income. Just be prepared to pay PMI if you go that route.
By the way, if you decide to buy a home with a mortgage, you should only consider a 15-year fixed-rate loan. Avoid 30-year loans since they keep you in debt longer and require you to pay a lot more interest. Also, steer away from dangerous adjustable-rate mortgages, FHA loans, and VA loans, which are bad financial instruments with a lot of hidden expenses.
3. How much are the closing costs?
Another financial topic you should consider is how much you will pay in closing charges. Closing fees are likely to be between 3-4% of your home’s buying price. So, if you buy a $300,000 property, you may expect to pay $9,000-12,000 in closing expenses.
Find qualified agents to assist you with your property purchase.
Make sure you save enough money to cover closing expenses in addition to the down payment you plan on making.
4. Should I save for relocation costs?
Moving is not free, unless you’re “paying” your pals with pizza to assist you! Don’t be surprised by the expenditures.
The cost of relocating varies significantly depending on whether you are moving locally or long distance, with local moves being less expensive. Calculate your savings to ensure you have enough money to cover any unexpected bills.
If you’re relocating for a job, you might be able to negotiate a relocation package with your new employer to cover your expenses—nearly 64% of employees received some sort of compensation for their relocation expenditures just a few years ago.
5. How will I furnish and decorate?
If you’re one of the happy few who is purchasing a completely furnished home, throw a party! If you aren’t one of the fortunate few, you’ll need to devise a strategy for acquiring furnishings for your new house.
This might be as easy as moving whatever furniture you possess from your present location to your new one. However, you may need to make some fresh purchases. If this is the case, only purchase furniture that you can pay for in cash, whether it’s new or secondhand.
Avoid utilizing a payment plan from a furniture retailer or a purchase now, pay later provider such as Klarna or AfterPay. Adding consumer debt to your mortgage is one of the biggest home-buying blunders you can make.
Decorate one room at a time to stay on track with your budgetary goals. You may have some vacant rooms for a time, but your budget and future self will appreciate it!
6. What is the location like?
Asking about the location is an important question. There are numerous crucial things you’ll want to know about a neighborhood before you move into it, including:
Distance from work: There’s nothing wrong with a longer commute, but you should understand what you’re getting into. Especially in larger cities, the area you’re considering may not be as near to your office as you believe.
Distance from schools: You probably don’t want to drive your kids an hour to school every morning.
Convenient shopping: How far is it to the next food store? How many grocery stores can you pick from?
Distance from friends and family: Everyone requires community in their lives, and this can be difficult if you are too far away from your loved ones.
Property values in the area: You want to acquire a property in the neighborhood’s lowest price range; these homes are far more likely to appreciate in value and sell quickly. You should also avoid buying a home in a region where property prices are declining, as this may make it more difficult to sell later.
Getting a handle on these data can help you determine whether a certain area or community is a good fit for your preferences and needs.
7. What are the schools like?
If you have (or want to have) children, asking about the quality of school districts near your desired house is clearly important. Even if you don’t have children, consider that a property near outstanding schools may be more value when it comes time to sell.
8. Is the area prone to natural disasters?
If you’ve never lived in a region with hurricanes or severe weather warnings, you’ve likely never had to consider how to protect yourself. Ask whether your new house is in a region prone to tornadoes, floods, wildfires, earthquakes, or ice storms. Then, ensure that your house insurance policy covers any natural catastrophes that are common in your region. If it doesn’t, you may have to get additional coverage.
9. Are there any issues with the home?
The answer to this issue isn’t always simple to determine on your own, which is why you should definitely have a home inspection before buying. Sure, your vendor is supposed to declare any known issues, but they may leave things out (accidentally or maliciously).
A competent house inspection will inform you about the safety and performance of your roof, foundation, electrical system, HVAC system, and plumbing. If you notice any red flags, you may either pass on the house, suggest that the owners remedy some or all of the concerns before closing, or see if you can negotiate a lower price and fix the problems yourself after you buy the home.
10. How old is the roofing?
Most roofing specialists believe that an asphalt roof has a lifetime of about 20 years. So, when you buy a property, you should ask one critical question concerning the roof: How old is it? If your roof is nearing the end of its useful life, replacing it might cost more than $9,000. You don’t want a sudden roof replacement to disrupt your budget.
11. How old are the appliances?
Imagine moving into your brand-new home and discovering that all of the appliances are broken. Not so good, huh? Well, if you know certain important appliances are on their last legs before you buy the property, you can prevent an unpleasant surprise. In addition, you should be able to negotiate a favorable price with the vendor.
So, inquire about the present life expectancy of all goods in the house and when they may need to be replaced. This covers things like the air conditioning system, water heater, washer and dryer, refrigerator, stove, and dishwasher.
12. What is included when I purchase?
You’ll want to inquire what’s included with the house you’re purchasing, especially because various states have differing regulations about what should be included in a property purchase. When making an offer, don’t assume you’ll be purchasing all of the appliances, light fixtures, and window coverings (such as blinds or curtains). If you do, you may be upset when you notice a gaping, empty area in the kitchen where the refrigerator used to be.
13. What do similar residences sell for?
Next, look at the home’s pricing. Specifically, you’ll want to discover how much comparable properties in the neighborhood sold for. The answer to this question will indicate whether or not the house you wish to buy is priced fairly.
Not an expert on local real estate economics? There’s no reason to worry! This is a question that your real estate agent can help you with. They will have firsthand knowledge of current house sales and property kinds in the region where you want to buy. To clarify, this is referred to as a competitive market analysis (CMA).
14. What is your motivation for selling?
Investigate why the seller is leaving, as doing so may offer you an advantage in negotiations. For example, if a seller is leaving because they have a new job and need to relocate quickly, they may be more inclined to negotiate the price in order to sell it faster.
This inquiry may also provide information about the house’s quality. While your seller is unlikely to come out and say, “I’m leaving because this place is a dump!” you should be cautious if they are unable to provide a clear explanation for their want to relocate, such as wanting to upsize or be closer to family members.
15. How many days has the home been on the market?
There are two sides to this question. On the one hand, the longer a home is on the market, the more likely the seller will be willing to negotiate on price. On the other hand, a property that isn’t selling may have certain flaws that you should be aware of.
So, if a property you’re interested in has been on the market for a while, talk to your realtor about why. If there are no red signals, you may have discovered a way to receive a discount.
In December 2023, the average house in the United States stayed on the market for 61 days. Now, that amount may differ in your location, and it may also vary depending on the season. Every market is different, so ask your real estate agent to give you an indication of how quickly properties sell in the area where you’re looking.
How to Best Answer Your Home-Buying Questions
There you have it, everyone. You now know the most important questions to ask when purchasing a house—it’s like having a secret weapon for a stress-free home-buying experience. But here’s the thing: it only works if you utilize it. So, go and ask these questions!
