Savvy homebuyers ask a slew of questions

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Published Date 8/24/2018

So you found it. The home with that perfect combination of square footage, style, and location, and you are close to making an offer. It can be tempting to do that reality show thing, call your Realtor, and just tell him or her which one you’ve chosen out of all the homes you’ve toured (ad nauseam).

Chances are good that your agent already pummeled you with questions about precisely what you are looking for. But what about some questions you should arm yourself with before signing on the dotted line? Due diligence on your part means you enter a transaction with both eyes open, leaving a lot less to chance.

Here is where you might want to slow down, smell the coffee, and ask about a few questions that have nothing to do with the price, the schools, whether the pool equipment is included, or how old the roof is.

The first one is to ask your agent their OWN opinion of the house. Agents are trained to show you homes and let you choose, trying hard to leave their own opinions off the table (after all, it’s not about them), especially when they see buying signs on your part. But would he or she buy it? If there is a lot of hesitation on their part, ask about what reservations they might have in purchasing and living in the home.

The provenance of the home is something homebuyers rarely ask about. What is the home’s sale history? If it was a brand new listing, was it listed before at a different price at one time and then taken off the market? And if so, what may have kept it from selling then? Or was it a rental, and if so, for how long? Has it ever been a bank-owned property? Your agent can call the previous listing agents or banks involved and get a lot of information over the phone. Sometimes the information they uncover might mean helping you get a bargain you might otherwise have not asked for.

Another question is similar in nature to putting your agent in your shoes. What contingencies (appraisal, inspection, financing) would they ask for or eliminate if they were buying this home? After all, once you make an offer and it’s accepted, there is no backing out unless one of those contingencies is not met.

At this point, your agent will show you the comparable market data again — homes sold, homes taken off the market, and homes currently in escrow. If listings are going like hotcakes and there are (were) multiple offers on the table for most transactions, this is when you — and only you — can decide which contingencies might be prudent enough to ask for without killing your offer, striking the right balance by asking your real estate agent for guidance. It’s also a good time to ask about the history of the neighborhood itself. Are there any upcoming street-widening project, encroaching commercial projects, open space being sold to developers, or abandoned railroad tracks that might get put back into use? Your agent may direct you to visit City Hall so that you can see the plans for yourself — a wise piece of homework to do when you are buying such a large investment.

Many buyers fail to ask enough questions about a neighborhood’s homeowner’s association and then find themselves surprised by the neighborhood rules. This can apply to all kinds of neighborhoods — not just condos and townhomes. There may be HOA assessments on the horizon and would would not know about it until after you move in. Things like exterior paint (colors you are limited to), front yard landscaping, and new roofing can be dictated by these rules. Determine how healthy the HOA already is — are there pending lawsuits against it? Or has it handled its finances and capital improvements well and provided amply for all homeowners under its purview?

And what about those covenants, conditions and restrictions (C.C.& Rs)? Did you go over them with a fine-tooth comb, looking for rules that may prove more than bothersome to you? What if you own three dogs that each weigh more than 30 lbs. and the rules say you can only own two, or they must be smaller dogs? What about the storage shed, greenhouse, or patio cover you have planned for your backyard? Is that permitted?

These often-pendulous documents and disclosures make pretty good bathroom reading, but not reading them is something you may live to regret if you pull the trigger before knowing what you are getting into.

Good real estate agents are super-sleuths and advocates for their clients — flies on the wall who hear everything about what's happening in the communities where they do business. They have built their reputations on their knowledge and expertise — virtual encyclopedias of a given area, a neighborhood, and even a house they have passed by over and over again with their clients. Picking their brains on all this is not considered a burden to them. They consider a honor to share what they know.

Source: TBWS

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