You've decided to purchase a home (or at least start thinking about it) and that is a massive milestone in your life. Congratulations!
For many first-time homebuyers, the housing market can be intimidating. But it doesn't have to be that way!
Whether you have found your dream home or are continuing the search, there are crucial questions to ask before you sign on the dotted line.
Let’s explore them together!
1. How long has this house been on the market?
Arguably one of the most important questions to ask before purchasing a home is asking the seller how long the home has been on the market for.
The answer you receive is useful information in context with the current real estate market, as it paints the picture of how fast you should move through the process.
In high-demand, low-inventory periods, for example, you will want to move quickly with your negotiations. In low-demand markets where the home has been on the market for over one hundred days, you will have more room to negotiate.
Based on how long the house has been on the market, your realtor can advise you on the best approach.
2. What are the additional costs?
There are many additional costs that go with becoming a homeowner, which should be specified and clear before you purchase your new home.
In addition to one-time setup costs and your monthly mortgage payment, there are additional costs such as:
Maintenance and Repair
All of these costs should be factored into your savings plan, and you should be given a clear understanding of approximately how much they cost per month.
This will allow you to further explore if the home fits within your budget, or if you need to adjust your financial strategy and move on to the next showing.
3. Are there any problems with the house? Even in the past?
Sellers are required to disclose any known defects in the home, but it is crucial to be entirely confident and sure prior to purchasing your home.
As a buyer, it is critical to understand what major potential costs may arise during the first year of ownership. If these costs are present at the time of the offer, this leaves you and your realtor room to negotiate the price to reflect the repairs that are needing to be done.
That is why we strongly recommend investing in a home inspection prior to closing. A home inspector will be able to outline what problems may arise in the future and the costs associated with fixing them.
You do not want to wake up a year from now in your new home, suffering from a notorious basement leak that doesn’t seem to be fixed no matter your efforts.
4. What is the neighbourhood like?
If you don't like something about the house you are interested in, you can always make changes after you move in. However, when it comes to aspects outside of your property lines such as the neighbourhood and your neighbours, you do not always have that option.
Aspects such as the walking rate, amenities close to your home, your neighbours, and your neighbourhood and crime rate all play a vital role in how you will enjoy your new home.
Ask around! It is worth it.
Let Arise Mortgage Lend a Helping Hand
Although there are many other crucial questions to ask about your potential new home before you sign on the dotted line, these four should be at the forefront of your mind.
Think you found your perfect home and are ready to line up your financing? Get in touch with our team today! We are more than happy to lend a helping hand.