Remember to be informed
Buying a house can be stressful—we get it! There are lots of decisions to make, it’s expensive, and sometimes it’s hard to even know what you should be looking for.
So, to help you feel more comfortable about the home-buying process, we’ve compiled a list of 15 questions to ask before buying a house. When you get answers to these questions, you’ll start to feel a lot more at ease about this whole homeownership thing and you’ll know you’re getting a good deal.
To be confident on your journey to buying a home, here’s what to ask when buying a house:
1. What’s my housing budget?
The first question you need to ask yourself is: How much house can I afford? It’s really important to have a good home budget so you don’t overspend on your house and wind up with a huge payment you can barely afford. That’s a recipe for disaster. If that happens, your house will own you—and you need to own it!
2. How much should I
save for a down payment?
The next question to ask is: How much do I need for a down payment? Well, the best way to buy a house is putting 100% down. That’s right—it’s best to pay cash for a house if you can.
But if that’s not realistic for you and you’re planning to take out a mortgage, aim for a down payment of at least 20 percent. Why? A bigger down payment means smaller monthly payments.
3. How much are closing costs?
Another money-related question you should ask is how much you’ll pay in closing costs. As a ballpark estimate, you’ll probably pay around 3–4 percent of your home’s purchase price in closing costs. So, if you’re buying a $300,000 home, you’ll likely have to pay $9,000–12,000 in closing costs.
Make sure you save up enough cash to cover closing costs on top of whatever you save for a down payment.
4. Do I need to save for moving expenses?
Unless you’re “paying” your friends with pizza to help you move, moving isn’t free! So don’t let the expenses catch you by surprise.
The cost to move changes drastically depending on whether you’re moving local or long distance, with local moves being less expensive. Do the math and make sure you have enough money saved up to pay for any expenses that may pop up.
5. How will I furnish and decorate?
If you’re one of the lucky few who’s buying a home that’s already fully furnished, throw a party! But if you aren’t fortunate enough to be in that crowd, you’ll need to make a plan for getting furniture in your new home.
That may be as simple as transporting any furniture you own from your current space to your new one. But you might need to purchase some new stuff too. If that’s the case, only buy furniture you can pay cash for—whether that means buying new or used pieces.
Do not fall into the trap of using a payment plan from a furniture store or a buy now, pay later company. Seriously, taking on consumer debt on top of a mortgage is one of the worst home-buying mistakes you can make.
6. What’s the location like?
Asking about the location is a big one. There are several important things you’ll want to know about a neighborhood before you move into it, like:
• Distance from work: There’s nothing wrong with a longer commute, but you do want to know what you’re getting into. Especially in bigger cities, the neighborhood you’re looking at may not be as close to your office as you think.
• Distance from schools: Chances are, you don’t want to drive your kids an hour to school every morning.
• Convenience of shopping: How far is the nearest grocery store? How many grocery stores do you have to choose from?
• Distance from friends and family: Everyone needs community in their life, and that can be really tough if you’re too far away from your loved ones.
7. What are the schools like?
If you have (or plan to have) any kids, asking questions about the quality of the school districts near your potential home is obviously a big deal. But even if you don’t have kids, keep in mind that a home located near good schools could be more valuable when it’s time to sell.
8. Is the location prone to natural disasters?
If you’ve never lived in an area that has hurricanes or severe weather warnings, you’ve probably never had to think about how to protect yourself. So, ask if your new home is located in an area where tornadoes, floods, wildfires, earthquakes or ice storms are common. Then make sure your home insurance covers any natural disasters that your area is prone to. If it doesn’t, you may need to buy extra coverage. See our aricle in this edition: One -third of CA households unprepared for extreme weather.
9. Are there any problems with the house?
The answer to this question isn’t always easy to find on your own, which is why you absolutely need to get a home inspection before you buy. Sure, your seller is required to report any known problems, but they could always leave something out (accidentally or intentionally).
A good home inspection will give you info on the safety and performance of things like the roof, foundation, electrical system, HVAC system and plumbing. If any red flags pop up, you can either pass on the house, request the homeowner resolve some or all of the issues before closing, or see if you can negotiate for a lower price and fix the problems yourself once the home is yours.
10. How old is the roof?
Most roofing experts say an asphalt roof has a lifespan of around 20 years. So before you buy a house, you should ask an important question about the roof: How old is it? If the roof is approaching the end of its life expectancy, it could cost you over $9,000 to replace it. You don’t want a surprise roof replacement messing up your budget.
11. How old are the appliances?
Imagine moving into your brand-spankin’-new house only to find out all the appliances are pretty much busted. Not good, huh? Well, if you know certain major appliances are on their last leg before you buy the house, you can avoid that unwanted surprise. Plus, you can probably work out a nice deal with the seller.
So, ask about the current life expectancy of all the items that come with the house and when they might need to be replaced. This includes stuff like the HVAC system, water heater, washer and dryer, refrigerator, stove and dishwasher.
12. What’s included when I buy?
You’ll definitely want to ask what’s included with the house you’re buying, especially since some states have different laws about the stuff that should be included in a home purchase. Don’t just assume you’re buying all the appliances, light fixtures and window treatments (like blinds or drapes) when you make an offer. If you do, you might find yourself upset when there’s a gaping, empty space in the kitchen where the refrigerator used to sit.
13. What are similar homes selling for?
Next, you’ll want to dig into the home price. Specifically, you’ll want to know what similar homes in the area are selling for. The answer to this question can show you if the home you want to buy is set at a fair price.
Not an expert in local real estate economics? No need to worry. This is a question your real estate agent can help you answer. They’ll have insider knowledge of current home sales and home types in the area where you’re looking to buy. And just so you know the lingo, this is called a “competitive market analysis” (CMA).
14. What’s the reason for selling?
See if you can find out why the seller is leaving, because digging into their motivation might give you some extra negotiating power. For example, if a seller is leaving because they got a new job and need to move quickly, they might be more willing to work with you on the price to get it sold faster.
15. How many days has the
house been on the market?
There are two sides of the coin on this question. On one side, the longer a house sits on the market, the more likely the seller will be flexible on price. On the flip side, a house that’s having trouble getting sold could have some issues you need to look out for.
So, if a house you’re interested in has been sitting on the market for a while, dig in with your agent and see if you can get to the bottom of why. If there are no red flags, you may have stumbled on a chance to get a discount.
To give you a frame of reference, the average house spent 61 days on the market in December 2023 across the U.S. Now, that number may look different in your local area, and it may also fluctuate based on the time of year. Every market is unique, so ask your real estate agent to give you an idea of how fast houses are moving in the market where you’re shopping.
There you have it, folks. Now you know the top questions to ask when buying a house—which is like having a secret weapon for a stress-free home-buying experience in your back pocket. But here’s the deal: It’ll only work if you use it. So, go ask these questions!