Purchasing property is one of the most significant decisions you'll ever make. It's also full of questions and uncertainties. That's why it's so important to get answers about the process before starting it. Here are some questions to ask your realtor before buying a house.
Do you need to know what I can afford or what I want to spend?
This is one of the big questions to ask your realtor. Home buyers often fall in love with a house they can't afford or are unwilling to pay for. Your agent has to know how much money you want to spend. Otherwise, it will be impossible for them to tell whether the houses they show you are within your budget.
The same applies when the time comes to actually move into your new home. The experts at Miami Movers for Less say that being precise about your budget is key to a satisfactory relocation, whether you choose to do it yourself or hire professional assistance.
How do you determine the market value of my home?
The first step to determining market value is to look at the price of similar houses in your neighborhood. If you’re selling, your realtor will pull recent sales data and analyze it to determine the value of your home. However, if you plan to buy your home remotely, you should ask your realtor this question.
For example, if five houses on the same street sold for between $400,000 and $450,000 each over the past year, it would be safe to say yours would probably sell for something close to that range. That is unless there are considerable differences between the properties (like a basement and an unfinished attic).
Can I see a sample report of your market analysis?
The market analysis is an overview of the current housing market.It can help you determine which neighborhood to buy in and how much you should pay for a home there.The report will tell you things like:
How does the average list price compare to the average sale price over the past year? If there'sa big difference between them, it could indicate that homes in this area are overpriced or underpriced relative to their actual market value. This information can help you choose a location where housing prices are more reasonable (and, therefore, likely to increase).
The current level of inventory – that is, how many houses are currently for sale in your target area?In most cities and towns throughout America, there aren't enough homes compared to how many people want/need them. So, if inventory is low, buyers typicallypay more than usual for their next home purchase due to scarcity driving prices up.
Do you want me to sign an exclusive buyer agency agreement?
An exclusive buyer agency agreement is when a real estate agent agrees to represent only you and your interests.If the seller hires another agent, they'll have to sell the home through your agent. This can be beneficial if you've found a house and want to move quickly but are worried another buyer will swoop in before you get the chance.
Imagine a competing offer comes in after the seller's broker has accepted your initial bid. You have signed an exclusive buyer agency agreement, and both sides must go back to square one. This means that everyone has wasted time and effort negotiating the terms of their contracts again from scratch. Instead, a better way would be to move forward toward closing dates for both parties involved.
What commission do you make on the sale?
The commission is the percentage of the sale price that your realtor will make for selling your home.In most cases, this commission is between 3% and 6%, with a typical range being 4% to 5%.It's paid by the seller and can be paid in cash or rolled into closing costs (which you can choose not to pay if you are paying off any other loans on your home). You'll want to know exactly how much of a cut they're taking before deciding whether or not they should help you sell your house.
What red flags could appear in an inspection report to stop me from buying this house?
When the inspection is complete, your realtor will usually walk you through the report and explain what each item means.Before you buy the house, they'll also go over any red flags such as:
The roof needs to be replaced, which can be costly.
The heating and cooling systems need replacing or repairing (if it's only one system that's not working properly, there could be a simple fix).
There's evidence of water damage or mold in places like windows or walls hidden behind baseboards or crown molding.
How much earnest money should I put down when making an offer on the house?
The earnest money is typically 1% of the purchase price, but it can be higher or lower depending on the situation. You'll need a good plan for where you will store this money if you have to back out of your offer at any point during negotiations. Having an escrow account set up at a bank before making an offer will ensure the safety of your earnest money and other closing funds until the closing day.
Once you get all of your questions answered, you’ll be ready to buy your new home! However, this process will require additional planning. While moving from one home to another, you might need to pay for moving and packing services, find storage,etc. Since this is a complex process, you need to be very careful not to overspend and avoid unwanted moving expenses.If you are already planning a relocation, create a list of your priorities and tasks so you can work within a specific budget.
Make a list of questions to ask your realtor and set on a home buying journey with confidence
There's a lot to think about when buying a house or condo. And if you're like most people, you probably don't know much about the process. So you must research and gather a list of questions to ask your realtor. The first set of questions will be about what type of property best suits your needs and budget. The questions listed above will help guide this conversation so that both parties understand each other better.
