10 Things every Homebuyer should find out before making an Offer
This is a list of things that I felt are important for anyone who is considering buying a home. They should apply no matter where you are, but are not intended to be all-inclusive. A great Realtor will take care of these things for you, so interview and find someone that you are excited to work with.
1. Is the Home in a flood zone? It is very important to know whether or not the home you are considering is located in a flood zone. The State of North Carolina has a mapping website that shows flood zones at www.ncfloodmaps.com. A competent local Realtor will also know how to obtain information on flood zones in the area. Another thing to consider is that flood zones do not paint the entire picture. Talk to people who live in the area to see if there is ever an issue with flooding in areas not in the designated flood zones.
2. Is there a copy of a recent survey available? A recent survey can help you a lot in determining the size of the property you are buying, and the location of the home relative to the property lines. Your Realtor should be able to help find you find out if there is a survey recorded in the local Register of Deeds, or be able to ask the Seller's Realtor if they can provide a copy of a recent property survey. After you go under contract, it is a great idea to have a new property survey drawn by a licensed land surveyor. The more information you have, the better informed you will be.
3. What is the true cost of my mortgage? The true cost of your mortgage is much more than the monthly payment due. Many people look at the interest rate they are receiving and forget the rest. Fees and charges can vary substantially from lender to lender, and it is a great idea to have something in writing from lenders you have interviewed. Tell them to show ALL of the costs you will have to pay in connection with your loan, and hold them to it. You can save thousands of dollars by finding the right mortgage, and you want to have this worked out BEFORE you go under contract on a new home.
4. What can I expect from local schools? If you have school-age children, the local schools are probably as important as the homes you are considering. There are a host of websites that have local school reports. A favorite that I recommend is http://www.greatschools.org/. Your local Realtor can also provide quality information on area schools, and can provide addresses as well, if you are interested in driving by the schools.
5. What would a Professional Property Inspector think about the property? A property inspection costs money. I know that you cannot afford to have a property inspection on every home you MAY have an interest in. However, it is a good idea to find a Property Inspector you intend to use, and to inquire what he or she would charge to drive by a property you are seriously considering, and give you a quick opinion of the property. If a property clearly needs a new roof or a new HVAC system within the next year, you need to know before you start negotiations.
6. What are the current local tax rates? Your Realtor can provide current local tax rates in your area. Tax rates vary from county to county, and also from city to city. You would be amazed at the disparity in tax rates between local areas. You need to know what your annual property tax bill will be, and if it fits in your budget.
7. What are the cost of utilities in the area? Likewise, water, sewer, cable and electric services vary in price from one area to another, and you need to know what to expect. Different homes in the same area may not have the same service providers, and may not even use community water and sewer services, but instead may have their own well and septic tank onsite. Your Realtor should be able to help you get a idea of what your monthly expenditures will be.
8. What will the cost of insurance be? If you are moving to a certain area, find your homeowner's insurance provider before you make an offer. He or she can provide you an accurate idea of what your cost will be. This will also help your lender establish realistic escrows, and give you a solid idea of this expense. Your insurance agent should be happy to provide this information.
9. What do my friends or family think of this home? Many people don't like to include friends or family in the home buying process. I respect that. However, an opinion from someone you know and trust can be invaluable. Your Realtor should have no issues including people you trust in the homebuying process.
10. Who are my Neighbors? Another GREAT idea is to knock on some doors and meet the people that may be your neighbors. They are a fantastic source of local information, and can give you answers you will not find anywhere else. Important questions may include their thoughts on the local schools or maybe their thoughts on crime in the area. In my experience you will get the unvarnished truth.
Buying a Home can be an extremely complex process, but can be made very simple by competent Realtors who know their job and know how to find the answers you need. I hope this post will help you in your search for the perfect home.
Joseph Keech is a Realtor in Leland NC and specializes in Leland NC real estate, foreclosures, and homes for sale. Please contact below with any questions on the local area.
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