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10 Must-Ask Questions Before Making an Offer on a Home

Sarah Miller7/16/20257 min read

Buying a home is likely the biggest financial decision you'll ever make. The process can be exciting, but also overwhelming. Before you get swept away by the perfect kitchen or spacious backyard and rush to make an offer, it's crucial to pump the brakes and gather as much information as possible. Your realtor is your key resource during this process, and asking the right questions is paramount. Here are 10 essential questions to ask your realtor before putting in an offer:

1. What is the current market like in this area?

Understanding the local market conditions is critical. Is it a buyer's market (more homes than buyers), a seller's market (more buyers than homes), or a balanced market? Knowing this will influence your offer strategy. A buyer's market allows for more negotiation, while a seller's market might require a more aggressive approach. Ask your realtor about recent sales data, average time on market, and price trends in the neighborhood.

2. What is the seller's motivation for selling?

Knowing why the seller is selling can give you a significant advantage. Are they relocating for a job? Are they downsizing? Are they facing financial difficulties? Understanding their motivation can help you tailor your offer to their needs and potentially negotiate a better deal. For example, if they need to sell quickly, they might be more willing to accept a lower offer.

3. What is the property's history?

Inquire about the property's past, including previous owners, any major renovations, and any known issues. Has the property been on and off the market multiple times? Were there any previous offers that fell through, and if so, why? This information can help you identify potential red flags and avoid costly surprises down the road. Ask about the seller's disclosure and review it carefully.

4. Are there any known issues with the property?

While the seller is legally obligated to disclose known issues, it's still wise to ask your realtor directly. They might have insights from previous showings or conversations with the listing agent. Don't rely solely on the disclosure; a thorough inspection is still essential, but knowing about potential problems beforehand allows you to prepare for the inspection and negotiate accordingly.

5. What is the best offer strategy for this property?

Your realtor should be able to advise you on the most effective offer strategy based on the property, the market, and the seller's situation. Should you offer above, at, or below the asking price? Should you include any contingencies, such as a financing contingency or an inspection contingency? What about an escalation clause? A well-crafted offer can significantly increase your chances of success.

6. What are the comparable sales in the area?

Also known as "comps," comparable sales are recent sales of similar properties in the same neighborhood. Your realtor should provide you with a list of comps to help you determine a fair offer price. Analyze the comps carefully, considering factors such as size, condition, location, and amenities. This will help you avoid overpaying for the property.

7. What are the typical closing costs in this area?

Closing costs can add up quickly, so it's important to understand what to expect. These costs typically include things like appraisal fees, title insurance, recording fees, and lender fees. Your realtor can provide you with an estimate of the closing costs you'll likely incur, allowing you to budget accordingly.

8. How much earnest money is typical for this type of transaction?

Earnest money is a deposit you put down to show the seller that you're serious about buying the property. The amount of earnest money can vary, but it's typically around 1-3% of the purchase price. Your realtor can advise you on the appropriate amount of earnest money to offer, taking into account local customs and market conditions.

9. What happens if the appraisal comes in low?

If the appraisal comes in lower than the agreed-upon purchase price, you may need to renegotiate the price with the seller, come up with the difference in cash, or walk away from the deal (if you have a financing contingency). Discussing this scenario with your realtor beforehand allows you to prepare for the possibility and understand your options.

10. What is your communication style and availability?

Buying a home is a time-sensitive process, so it's important to work with a realtor who is responsive and communicative. Ask about their preferred method of communication (phone, email, text) and their availability. Make sure you feel comfortable with their communication style and that they are readily available to answer your questions and guide you through the process.

Asking these 10 questions before making an offer will empower you to make a well-informed decision and increase your chances of landing your dream home. Remember, your realtor is your advocate, so don't hesitate to ask questions and seek their guidance throughout the entire process.

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