What To Do Before Putting In An Offer On A Home

Doing some basic preparation can be helpful before you pull the trigger.

The search process for a new home is always full of a little bit of anticipation and usually a lot of excitement. Especially when you have located 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 some important things that you will want to consider before you put forth that offer. Some items may affect your offer and some may affect your quality of life should you get the home. Here is a closer look at these things. 

Home History and Finances

Learning more about the seller’s situation can be insightful and even help your offer. Do some research to learn 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 find out why the seller is moving. This can help you figure out their level of motivation and craft a fitting offer. 

Check Permits

Do a little research with the building department data and see what kinds of permits have been pulled and if any are still open. If the seller is advertising 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 based on 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 increase considerably 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 surprised.

Research The Fees

If you are purchasing within a community with a Homeowner’s Association (HOA) and dues then you will want to dig in some more. Find out how much they are, what they cover and how often they get collected and assessed. This will help you budget overall. 

Insurance and Utility Estimates

See if you can learn 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 age of roof and type of windows. For any homes that are located 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 much more efficient than others. 

Lifestyle

Other than the condition of the home there are other factors that you should investigate that affect your daily life. 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.