This is the fifth installment in a series to guide you through buying a home in the Springfield, MO, area. If you missed the first four installments, I'm including the links here:
Buying a Home in the Springfield MO Area - Part 1 - Getting PreApproved for a Loan
Buying a Home in the Springfield MO Area - Part II - Selecting a Realtor
Buying a Home in the Springfield MO Area - Part III - Choosing Your Area/Community
Buying a Home in the Springfield MO Area - Part IV - Search For a Home
Now...you're preapproved for a loan, you've selected your Realtor, you've chosen your area/community, and you've looked at homes...what's next? Researching your home of interest.
This is where working with the right Realtor is invaluable. Your Realtor should be able to research your home of interest and give the following information to you:
- How long has the home been on the market? Has this home lingered on the market more than the average days on the market for its particular area? If so, what are the possible reasons?
- Have there been any price reductions on the home? If the seller has made several price reductions in regular increments, this could be a sign of a very motivated seller. If there have been no price reductions and the home has been on the market for an unreasonable amount of time, this could be the sign of a difficult seller.
- What have comparable homes in the area sold for? How does the list price of this home compare to the homes that have sold recently? What is the average price per square foot of the homes in the neighborhood? How does this home compare with the homes that have recently sold?
- Disclosures. Disclosures are very valuable when looking at the history of the home. Has there ever been water in the basement or crawlspace? Has the home been treated for termites? How old is the roof? What equipment and/or appliances stay with the home? Has the home ever been tested for radon? When was the septic last serviced?
- How much did the current seller pay for the home? When did the current seller purchase the home and how much did they pay? How does that compare with the current list price?
- What upgrades has the seller made to the home? Many times the price the current seller paid for the property is much less than the current list price. What upgrades has the current seller made to the property? Can they justify the increase in their asking price?
- Are there possible zoning, school or street changes? Are there any outstanding sewer connection fees on the property? Possible school redistricting? Zoning changes? Street changes? The answer to these questions may have a huge impact on your decision to pursue an offer on your home of interest.
- Miscellaneous information. I've often been asked to find out other information on a property that is not readily available to buyers, such as who owns the vacant land adjoining the property. Do they intend to sell in the near future? Is development of the adjoining vacant land a possibility in the near future? Certain items on the disclosures can also warrant additional research, such as repairs due to storms. How much damage was done to the property? Who made the repairs to the property?
Gathering as much information on the home as possible prior to writing your first offer can help you position yourself in negotiations. Once you've educated yourself, you're ready for the next step...writing an offer.
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