A Little Preparation Can Be Extremely Helpful Before You Submit Your Offer to Purchase
The home search process is always filled with a little bit of anticipation and usually a lot of excitement. Especially when you have found a home that seems to fit your criteria it is very tempting to rush into making an offer - especially in today’s market conditions. However, there are definitely some important things that you will want to consider before you submit that offer. Some items may affect your offer and some may affect your quality of living should you get the home. Here is a closer look at these things.
Home History and Finances
Learning more about the seller and their positioning can be insightful and even help your offer. Do some research to see things like how long the home has been on the market, how long they have lived there, what the mortgage status is, and what the sale and market history has been. It is also good to know why the seller is moving. This can help you assess their level of motivation and craft a fitting offer.
Permits
Do a little homework with building department data and see what kinds of permits have been pulled. If the seller is touting certain items it is helpful to see if they were done with a permit.
Estimate Taxes
You don’t always want to estimate what you will be paying for taxes by what the seller pays now. While you will pay them in arrears you will pay their rate the first year but the second year they may jump quite a bit depending on what you and they paid for the home. Do some math to figure out what they will eventually be so you are not caught off guard.
Research Fees
If you are buying within a community with a Homeowner’s Association (HOA) and dues then you will want to dig in some more. See how much they are, what they cover, and how often they get collected and assessed. This will help you map out your budget overall.
Insurance and Utility Estimates
See if you can find out what the seller currently pays so you have a ballpark estimate for yourself. Find out what other factors may play into the premium costs too such as the age of the roof and the type of windows. For any homes that are in flood zones, it is a good idea to find out what the seller is paying for that as well. Any other general costs for utilities and maintenance are helpful to know as well as some homes are more efficient than others.
Lifestyle
Outside of the condition of the home, there are other factors that you should investigate. These include things like proximity to local services, school ratings (even if you don’t have kids this can affect property values), HOA rules, and even how your regular commute will be.
