Buying Tips and Questions

  1. Getting pre-qualified is a necessary first step. It will affect both your search, and your negotiating power.
  2. Figuring out your goals and time-frame up front can save a lot of time.
  3. If you are a current homeowner, consider the pros and cons of buying a house contingent upon the sale of your house versus selling first. Your loan officer can be a great resource for you with this decision.
  4. The supply/demand ratio in your area and market, and the time of year, will affect how homes are priced. They will also affect the balance of power in negotiation.
  5. You should have a clear understanding of "dual agency," and whether it applies to your transaction. If the agent who is writing your purchase agreement is also the listing agent for the property on which you are making the offer, you should know the following:
    1. Am I a client or a customer, and what is the difference? There are big differences in regards to disclosure and obligations.
    2. You should get an independent market analysis or appraisal to be certain of the value of the home.
    3. You may also want the agent’s manager, or another agent, to proofread the purchase agreement.
    4. You should consider a more in-depth home inspection.
  6. If there is a contingent offer on the house (which means that the offer is contingent upon the sale of the other buyer’s house), you will want to know how and when it will expire. You also will want to find out if you can cancel your purchase agreement during the contingency period without losing your earnest money (the deposit you make with your offer).
  7. Find out under what other circumstances would you lose your earnest money.
  8. You may want to know if there have been other offers on the house that have canceled.
  9. Has there been a Truth in Housing inspection, private inspection or other work performed? Are there outstanding work orders?
  10. You should always have a home inspection done by a certified professional.
  11. Check for pending or levied assessments on the property. Are the sellers paying them?
  12. Ask about the broker administration fee. It will usually not show up on the "good faith" estimate from your lender.
  13. Find out about interest rate locks, underwriting and direct lenders versus brokers.
  14. Find out about title companies and the differences in their title insurance coverage.
  15. Learn your options and make an informed decision about home warranties.