Before You Make an Offer
Buying a home is always exciting, but when inventory is tight and sellers are scarce, things move even faster. You might feel rushed to get your offer in before someone else does — and sometimes you do need to move quickly. But a few minutes of homework now can save you headaches and money later.
Here are ten things worth checking before you sign anything.
Find Out the Home's History
Before you make an offer, get a sense of the property's real story. Is the current owner the original homeowner, or are they a flipper who bought it, renovated, and listed it again? If it's the latter, their insights into the property might not be all that deep.
What's the Seller's Financial Situation?
A seller who's paid off their home will likely have more room to negotiate than someone carrying a second mortgage. You can dig into tax records, court records, or the property appraiser's records to get a better sense of where the current homeowner stands financially.
Has the Property Been Renovated?
One way to see if work's been done recently is to look up county or city permits. For some additions or renovations — like a deck or garage — a building permit is required. If the permit was never obtained, the square footage may need to be reduced, which can lower the asking price.
Check Out Current Home Listings in the Area
There might not be many active listings right now, but there are probably recent sales. See what buyers in the same neighbourhood have been willing to pay, and use that as a negotiating point.
Check Out the Market
While you're at it, think about where the house you're looking at falls on the spectrum. Is it more expensive than comparable homes, less expensive, or somewhere in the middle? Your goal should be to land somewhere in the middle — paying a lot less can signal a bigger issue.
Are There a Lot of People Selling?
If there are plenty of homes for sale, you've got a buyer's market, which works in your favour. If not, you may need to be willing to pay a bit more to land a home in your targeted neighbourhood.
Inquire About HOA Fees
If you're considering a home in a subdivision or planned community, there may be homeowners association fees. Make sure you know what those are in advance so you don't get hit by surprise costs.
How Much Are Property Taxes?
Your mortgage isn't the only cost tied to the property — you'll also pay property taxes. These vary based on where you're buying and can be surprisingly high, so don't get caught off-guard.
Ask About Upkeep and Utilities
Beyond taxes, you'll be responsible for upkeep and utilities. The larger the home, the higher your energy costs. And if the landscaping requires a professional to keep it looking good, that adds to your monthly budget too.
What Are Home Insurance Costs?
While things like claims can increase the cost of home insurance, you can generally expect to pay roughly what the previous owner paid. Ask what they're paying to get a better idea of your own costs. Or shop around for your own quotes before you commit to an offer.
Think About Daily Life
Once you've got the numbers sorted, think about what living in the home would actually be like. Check out the schools, local crime stats, and your commute. All of these will factor into how well the home works for you down the line.
