3 Issues To Consider Before Writing An Offer

3 Issues To Consider Before Writing An Offer

You’ve been searching for the right home, perhaps for some time. It’s natural to be excited when you find one that suits you perfectly. While the home might have beautiful hardwood floors and a chef’s kitchen, there are three important things to consider carefully before writing that offer. Your quality of life depends not only on the condition and features of the home itself, but also the community, neighborhood and facilities of the area it’s in.

1.      Road
   
   All roads are not public roads. A public road is one which is constructed, repaired and maintained by public authorities. This can be a county or city municipality. A private road is one which is created by the property owners for their own use. A private road might allow public use or be strictly for the property owners themselves.
   
   A private road can be paved or dirt and is maintained by the land owners themselves. This includes paving, leveling and in colder areas, snow removal. A private road might also include an easement which prohibits a land owner from destroying the road. Understanding they kind of road which gives you access to your property is important so that you can budget for any future costs.
   
   
2.      Water/Sewer
   
   Does the home have access to city services such as the water district and sewer connections? Homes without connections will use a well for water and septic tank system for sewer. While many homes have these kinds of systems, you need to have special inspections to ensure they are functioning properly and won’t give you any problems after the close.
   
   
3.      Special Assessments
   
   There are several ways a property can be encumbered by special assessments.
   
   Neighborhood Improvement District
   
   A neighborhood Improvement District (NID) is a governmental agency which raises funds from property owners in certain areas through special assessments collected with their property taxes. These funds are managed by a board of community members who use the fund for area improvements. These assessments are added to your property tax bill and can add thousands to your yearly costs.
   
   Homeowner’s Association
   
   Many areas are part of a smaller community which belongs to a homeowner’s association (HOA). The HOA is comprised of property owners within the development and manages the common areas. This can include landscaping, pools, tennis courts and other neighborhood amenities. There is typically a monthly fee for HOA and also CC & Rs, which are essentially the rules of living within the HOA. Potential home buyers should review the rules, costs and financial health of the HOA. At times an HOA will have a special assessment to homeowner’s to pay for a large project as well, such as building facilities or severe repairs that were unforeseen.

By working with your agent to understand all the factors that affect home ownership, a potential buyer can avoid financial surprises at or after the close. Before writing an offer on that perfect sprawling ranch, it’s important to explore any special situations which could affect your use and enjoyment of your new property.