5 Questions Buyers Should Ask Before Making An Offer

If you’ve read my other blogs about buying, you know that I’ve emphasized that buying a house is a BIG deal and most likely the biggest purchase in your life. I feel like a lot of buyers don’t know what kind of questions to ask during the buying process especially when making an offer. So whether you use me or not, I am here to help you.

What Is The Offer Price Based On?

Don’t look at the active homes for sale in the neighborhood, look at what has closed that’s similar to the home you want. Make sure to make comparisons, most of the time your agent will help you with this. Go roughly 1/4 of a mile radius from subject property and determine what is the best offer price. If it’s a seller’s market you may want to offer more. Again just look at your SOLDS!

How’s the location?

If you’re not familiar with the neighborhood you can call the police department and ask them. They will let you know based on their data if it’s a good neighborhood. Ask them if they would let their loved ones live in that neighborhood and if they say no, then you might have to reconsider.

What type of properties are located nearby?

OMG if you haven’t heard “LOCATION LOCATION LOCATION” when it comes to real estate I’m going to punch you. Lol. Jk but not really, location is HUGE. You should ask because it’s been known that apartments, commercial, and industrial building lower the value of residential homes around them.  Just something to keep in mind.

What Is The Condition Of The Home?

Don’t be afraid to ask upfront before you get an inspection, which in my opinion you always should. Knowing the condition of the home can help you tweak your offer. If the property needs a lot of TLC you can offer lower due to the amount of money you’re going to have to put into it. Unless of course, it’s a seller’s market. Somebody else might not care and offer over asking. Still, a good question to ask because if you don’t have the money, why put yourself in that situation of buying a house that is going to need $10k + of repairs. Simple questions like how old are the roof? What type of foundation? How long ago were the appliances replaced? Does the home have insulation in the walls and attic? If you insulate your home after you buy it will cut your utility bills but won’t increase much of your market value in the future.

Can I get my Earnest Money Deposit if I Decide Not to Buy?

So let’s say you made the offer but you can’t get the loan. You are entitled to your earnest money deposit. The only way you are at risk of losing it is when you have removed ALL of your loan contingencies and decided to stop the purchase.

I hope this was helpful, if you have any questions, please feel free to email me.

As always, thank you for reading, I appreciate you and your time.

xx