Part 1 – Financial Questions
It’s been said many, many times that buying a house is one of the most difficult decisions a person can make (and your Birmingham Alabama Painters couldn’t agree more!). So much is at stake, not the least of which is a pretty darn substantial amount of money. With both sides of the equation trying to get what’s best for them while not running the other off, buying a home can be a high-stakes balancing act.
The Importance of Asking the Right Questions
As the purchaser, you potentially have the most to risk by making the wrong decision about a property. Think about it: if you don’t buy it, you’re just out some time, as is the seller (which, for them, can mean a loss of money, but likely not a huge amount). If you do buy it, however, and things go badly, you don’t really have a lot of options, and the seller is sitting pretty.
A home is the average American’s biggest asset. It’s a huge investment. Those looking to buy a house should be prepared to ask a heck of a lot of questions about the property, and if you can’t get a good, straight answer, it might be time to look elsewhere, because the financial risk is just too great. If you’re on the house hunt, bring this handy list of dynamite financially focused questions with you, and try your best to get answers to just about every one of them. You might be surprised at what they turn up!
1. How much did you pay for this house? Always, always, always try to find out the answer to this question. Not only does it give you an idea of how much room the seller has to work with, it tells you whether the property value has changed over the years, which can be indications of how it will appreciate in the future.
2. How did you come to the asking price? This question might seem rude, but remember this: they want to sell you this home. Hopefully, they’ve got a good agent who will give you what’s called a Comparative Market Analysis detailing the reasons for the given price.
3. How much do you still owe on the home? This gives you a couple bits of info: first, if the amounts is more than the price asked, they’re probably short selling the home, in which case you should ask if the bank has approved this or not. Beyond that, you should find out what the reason for the short sale is. If it’s less than the asking price, the difference should help you understand how quickly and how badly the owner wants to sell.
4. What upgrades have you done? This will help you determine how much money the current owners have invested in the home, which could be influencing the asking price. It will also tell you whether any appreciation is because of a general property value increase in the area, because they’ve improved the condition of the home or both.
The seller’s don’t have to answer these questions, and if they have an agent (which they most likely do) they’ll be the ones you have to ask. If you have an agent of your own they can look up valuable financial information for you, such as how much the current owners paid for the home and what homes in the neighborhood are selling for. Next time, in Part 2 of this series, Prestige Painting will look at questions you should ask about the seller, neighborhood and property itself. Happy House Hunting!
Original Source: http://www.paintedbyprestige.com/diy/what-to-ask-dynamite-questions-for-buying-a-home-part-1
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