Buying a home is one of the largest financial decisions most people will make in their lifetime. Naturally, this means that potential homebuyers are going to have a lot of questions.
This list of FAQs will help prepare you for answering your customers’ most important queries.
Q: What are the most important things to consider when looking at the condition of a home?
A: There are several things to look at when determining whether or not to purchase a home. One is the age of the roof. A roof usually lasts between 15-50 years depending on its materials. Another area to look at is whether the foundation is raised or slab. Newer homes tend to have slab foundations, but a raised foundation makes it easier, and usually cheaper, to access underneath the home to address electrical and plumbing issues.
Q: Do I need an attorney to be involved?
A: It depends on the state. Some states require attorneys to draft a real estate transaction contract or purchase agreement, while others use an escrow company instead. Check with a real estate agent to find out the laws in a specific state.
Q: How do I decide what to offer the seller?
A: How much the seller paid for the home, how much the seller still owes on the home, and how long the home has been on the market are all things to consider when coming up with an offer. In addition to questions about the house, it is important that the buyer asks themselves how much they can feasibly afford and how valuable the house is to them when considering an amount to offer.
Q: Do I need to get a home inspection?
A: While it is typically an additional expense for the buyer, a home inspection will cover the entire house- inside and out- and can prevent costly surprises down the road. At the end of the inspection, a signed report of the findings will be given to the buyer. No other party is entitled to see the report unless the buyer allows them to.
Q: What is a house closing?
A: This refers to the final transfer of ownership from the seller to the buyer. This transaction usually takes place in the office of someone who is licensed in initiating the transaction and purchase agreement such as a real estate lawyer or title officer. The date for closing is set during the negotiation phase and usually takes places several weeks after the buyer’s offer is officially accepted by the seller. There are several fees involved in closing, which can be paid either by the buyer or the seller- depending what they established during negotiation.
Q: Do I need title insurance?
A: Title insurance covers you in case the title search missed something that would make the purchase of the home invalid. While a title search is conducted during the home buying process, there can be things that aren’t caught until after the buyer has moved in, meaning they could potentially lose their house. If this were to happen, the buyer is likely to receive damages if they purchased title insurance at closing. Two title insurance policies are needed- one for the buyer and one for the lender.
This post is provided by our mortgage partner, Supreme Lending, using the following sources: