What do buyers need to know before making an offer on a home?

What do you need to know before you make a purchase offer on a house?

This may vary with the part of the country you are in and with the house itself. I am in Southern New Jersey. My office is in Camden County.

Some things to know (or learn) are:

Comps:

People use this term as though it has an actual definition. This does refer to comparable homes that have sold recently ( How recent is 'recent'?) That is not all though.

• What competing properties are now on the market?

• How long have they been on the market?

• How many have been listed for sale and expired unsold?

• How many times has the price been reduced? How recently?

• Did the current owner/seller buy during the boom?

The listing agent: Is the agent experienced, inexperienced, desperate for a sale?

• How long has the listing agent been in business?

• Does the listing agent have a history of pricing homes near their eventual sales price or are they much above?

• Had the agent sold anything lately?

• Do they have other listings currently under contract?

The seller:

• Have they already moved out? (if it has furniture but looks a little unlived in check the closets and fridge for clues.)

• Is there 'deferred maintenance'?

• Is there a short sale (has the seller already been approved or not)

• Are they buying another house (is it contingent on this sale)

What is the condition of the home?

• Neither the buyer or the buyer's agent are home inspectors but they do indeed need to inspect.

• A buyer's agent should look for certain types of foundation cracks, termite activity, roof condition, apparent age of furnace/AC and a host of cosmetic issues.

• Issues with anything not cosmetic will come up on your home inspection but if you know you will soon be needing a new roof you can consider that info when you determine an offer amount. You might even get an additional concession after a home inspection but at least it won't be a surprise

• Have there been recent additions that might not be reflected in the tax assessment yet?

The neighborhood:

• Sometimes a home that appears to be a come - isn't. (at least without a major 'adjustment')

• Has the town recently gone through a tax assessment? If it has great. You probably can rely on the tax amount reported in the tax records.

• Does the area suit you? Commute, services, "feel"...

It does little good to have a "buyer's agent" if the agent doesn't know how to do 'DUE DILLIGENCE" to benefit you. There are many people in this industry claiming to be a buyer's agent that know little about true representation. This especially goes for some who rushed in during the last 5 years hoping to make a quick buck.

If you are in the market for a home in the Cherry Hill, NJ area, make sure you hire an agent who will work for you on your side of the transaction. Paul Howard is the only Exclusive Buyer Agent having an office in South Jersey. Paul, owner of NJHomeBuyer.com Realty in Cherry Hill, is a member of the highly selective National Association of Exclusive Buyer Agents, representing buyers ONLY, 100% of the time.

If you are thinking about buying a home in the Cherry Hill, New Jersey area in the near future, call Paul at (856) 488-8444 or send an email for free information.

NAEBA puts the E in EBA.

Serving the following counties: Burlington, Camden, Gloucester, Mercer, Middlesex.