When you are looking to purchase a new home, you will likely have a lot of questions to ask a real estate agent. This is a stressful process and, in addition to finding the right home for you and your family, you will also need to choose a living situation that will benefit you financially. Your real estate agent can help you along the way, and some of the most important questions to ask him or her before buying a home are outlined below.
1. How much is this home worth in the current market?
While your real estate agent may not be able to tell you how much you should offer when attempting to buy a house, you can get information from them by asking indirectly or by obtaining facts about sales that are comparable. Your real estate agent should provide you with a variety of comparable homes, including prices of similar homes located nearby that were recently sold. High and low price ranges for particular properties should also be provided.
Knowing what the home you wish to buy is worth is important when you attempt to secure financing. Depending on the price of the home, you may need to secure additional loans, put down a larger down payment than you anticipated, or consider a bad credit home loan. These factors will be important in determining whether or not you can afford to purchase a particular home.
2. What are the monthly costs for owning this home?
If you are a first time homebuyer, you may not be knowledgeable when it comes to the monthly expenses that go along with homeownership. Call on the expertise of your real estate agent in order to get information on what you can expect to spend, as the cost of being a homeowner will extend beyond your monthly mortgage payments. Discuss what you will be expected to pay in terms of insurance, HOA fees, and taxes in order to get a better idea of what your monthly payment will be.
Your real estate agent can also advise you on some of the benefits of home ownership. Owning your own home can have a major tax impact, and you should review potential tax incentives before making a purchase. You should also do a credit score check before buying your home, not only to determine whether you will be able to secure financing, but also to see how establishing a solid payment history with your mortgage may be able to help your credit score.
3. What does the area's long-term future look like?
Even when you are just buying your new home, you should already start thinking about resale value. Consider the lot size, and look at the landscaping. Curb appeal is important in luring in potential buyers in the future, so if your home is not aesthetically pleasing to look at from the street, you should consider how much money and effort it would take you to enhance that portion of the property in the future. When looking at the inside features, most homes are able to hold up their resale value if they offer a minimum of two bedrooms, more than a single bathroom, a garage, and adequate storage space.
Besides looking at a home and its price appreciation, you should also ask about the long-term prospects. It is highly desirable to live within an area where growth prospects are expected, especially if more than one area is growing. Living in a community that relies heavily on one type of industry can be dangerous, as the real estate market could fall if something negative occurs within that industry.
When buying a new home, you will want to ensure that your decision is right for both you and your family. The financial aspect of home ownership is important, so it is essential to make sure you know all of the financial requirements that go along with buying a house, as this will help you to determine if you are able to afford it. For further financial information, get your 3 credit bureau scores, talk to your loan officer, and get additional guidance from your real estate agent.