When you buy a house, you are likely making the biggest investment of your life. Unless you are someone who deals in massive business transactions such as acquisitions, you are not likely to make a bigger purchase.
As such, you want to make sure that you are making the right decisions.
Not only do you want to ensure that you’re getting a good home that will serve you well throughout your stay in it, but you also want to make sure that the real estate agent you hire is going to put in the work to get you the best deal possible and make sure you’re aware of any concerns that might be warranted.
Today, we’re going to cover those things.
There are 5 things you need to ask a real estate agent before buying a home. These range from simple questions about the home to more complex questions about the general area it’s in and how that affects the home’s future.
Let’s get started.
1: What are the Property Taxes on the Home?
This is one that the average homebuyer needs to ask, but they often don’t think of it. Soon after buying the home, it can be a big surprise. You might be able to purchase the home with enough financing, but can you afford the annual property taxes that come along with it?
Will you be able to afford those property taxes when you retire and no longer have as many options financially to bring in income?
Always ask your real estate agent what the property taxes are in the area and the history of property tax hikes in the area.
This will give you a realistic depiction of what you’ll need to accommodate each year in your budget, and you won’t be caught off guard by a massive tax that you weren’t prepared for. You want to minimize surprises like that as much as you can because once you buy the house, it’s your problem.
2: What is the State of the Home’s Structural Integrity?
You’ll want to know exactly what state the home’s core structural pieces are in. Those are some of the most expensive things to repair, and if you rush into buying a home without asking, you’ll likely end up having costly consequences shortly after.
The home’s framing, foundation, and roofing are your main worries. Primarily, you’ll want to know how old the roof is and whether or not the foundation is in solid condition. Even small signs of corrosion in the foundation can lead to astronomical costs in the future.
Luckily, the law protects you when it comes to these things. If you ask and have a proper inspection performed, the seller does have to provide honest information, or you can take action when something happens in the future because of undisclosed information.
You do need to ask, though. It’s a prerequisite in most legal situations, and it can save you a lot of problems in the future.
3: How Old Are the Home’s Major Features?
Just like you need to worry about the foundation, roof, and framing because they all present a major financial risk in the future, you also need to ask about its major features, such as its HVAC system, plumbing, gas lines, and electrical wiring.
Those things might seem like they’re in great condition because obviously someone is living there and using them now, but they might be extremely old.
Old plumbing can pose a major threat in the form of breaks during the cold season, it might leak and create water damage, or it might even be so outdated that it doesn’t meet modern municipality regulations, and that can force you to have it replaced at your expense.
Old electrical wiring poses a fire hazard, and if you’ve ever needed to replace an HVAC system, you know how expensive and complicated that can be.
Again, if you take the time to ask your real estate agent about these concerns, they can get that information and help you make an informed decision. In the event that things might need work, you might even be able to get a reduced price on the house to accommodate those impending repairs.
4: Local Economy and Home Price Average
Another key thing you want to ask your realtor is whether the local economy is good and how much other homes in the area are valued. Specifically, you want to know what similar homes are valued at.
While this doesn’t directly affect your potential new home, the local economy will impact various aspects of your life once you move. Areas with great local economies provide better job opportunities and services, and they encourage new homeowners to come to the area. That’s crucial if you ever decide to sell your home.
Also, knowing how other homes are valued in the area can give you a good idea about whether or not home value is rising or dropping. If you don’t pay attention to this, you might lose money on your investment in the future.
5: Local Cost of Living
Finally, it’s important to ask about the local cost of living. You probably looked this up online while looking for areas to move to, but the cost of living can vary dramatically from a small community to a neighboring small community, and most online overviews show large areas and their average cost of living. What you thought was affordable might be a town that is significantly more expensive.
Luckily, a good real estate agent will have sold homes in the area before and knows exactly how much you should expect to pay for necessities and day-to-day needs.
Considering this is a long-term cost and will have the most impact on your ability to thrive in your new home, it’s a key consideration to ask about. You might be better off looking at homes a few neighborhoods away.
Hire the Right Real Estate Agent to Get the Best Deal
If you want a real estate agent who can answer these questions with the level of expertise necessary to help you make the best purchasing decisions, contact me. I have a complete understanding of what you need as a homebuyer and will work to make sure you get a home you will be proud of.
Here are the areas that I operate in: Danville, Alamo, Blackhawk, Dublin, San Ramon, Pleasanton, Mountain House, Livermore, Tracy.