6 questions to ask when buying a home

June 13, 2020

Knowledge is power. By asking the right questions, you can feel confident in your home-purchase decision.

 

Buying a house can feel like an audition: You’re brushing up your credit score, getting paperwork in order, writing a compelling offer and generally presenting yourself as an attractive buyer. But you’re also entitled to ask some tough questions when buying a home, whether it be of the lender, real estate agent or seller.

Here are six important questions to help you make the right choice when you decide on your next home.

 

1. What are comparable houses selling for?

It’s not just how to buy a home, but how to pay the right price. Comparables, or comps, are the prices of nearby homes of a similar age, size and condition. Ask your real estate agent to look for you or check them out for yourself on Redfin or Trulia. Also find the high and low sale prices for the area where you’re searching, which will help you determine the right amount to offer. As you apply for a mortgage on a specific home, an appraiser will analyze comp data in detail. Know beforehand whether your offer fits the neighborhood to avoid coming up short on your appraisal.

 

2. Are there foreclosures in the area?

Even if your property isn’t a foreclosure, nearby foreclosures can significantly affect property values. Ask whether previous sales were influenced by foreclosures in the area. In some cases, a high rate of foreclosure can result in a bargain, if you’re willing to wait until the neighborhood turns around and new owners move in. Talk to a real estate agent about how to buy a foreclosed home.

 

3. How flexible is the seller?

You probably won’t meet the seller, but your real estate agent can help you get an insight into the seller’s mindset. Are they lukewarm about moving, or is there urgency to their plans? Is the seller the homeowner or a third party like a relocation company? Individual homeowners, especially those with established equity, tend to be more flexible than third parties or investors. Price isn’t the only thing you can negotiate; you can ask the seller to pay part of your closing costs or to leave behind appliances or other fixtures. It doesn’t hurt to ask.

 

4. Is the home in a floodplain?

Your lender or real estate agent should be able to answer this question for you. If the home is in a floodplain, it could mean mandatory flood insurance, which can be expensive. Make sure you get a clear answer on this.

 

5. What’s wrong with the house?

The seller is required to disclose information about major concerns, such as flood damage. But, for minor issues, the seller probably won’t be in a hurry to answer. You’ll get the best information from your home inspector. The period between the home inspection and closing is your last chance to get the seller to pay for repairs. Tag along on the inspection to watch an examination of every potential blemish the property might have.

 

6. Can paperwork be produced?

Ask about paperwork regarding appliances and the inner workings of a home. Knowing the age of a furnace or whether your water softener is under warranty can influence costs down the road. Repair manuals can be very helpful if you need to troubleshoot older appliances. Don’t hesitate to ask. 

 

Ready for your dream home? Learn more about buying a home.

Related content

Military homeownership: Your guide to resources, financing and more

For today's homebuyers, time and money are everything

How I did it: Bought a home without a 20 percent down payment

How I did it: Built living spaces to support my family

Money Moments: Tips for selling your home

Overcoming high interest rates: Getting your homeownership goals back on track

Should you buy a house that’s still under construction?

Mortgages after retirement: Here’s what to know

10 ways to increase your home’s curb appeal

DIY home projects 101: tips from a first-timer

Is it the right time to refinance your mortgage?

6 questions to ask before buying a new home

5 things to avoid that can devalue your home

What is a home equity line of credit (HELOC) and what can it be used for?

What is a mortgage?

What you need to know about renting

8 steps to take before you buy a home

What is refinancing a mortgage?

Are professional movers worth the cost?

Building a dream home that fits your life

What to know when buying a home with your significant other

Mortgage basics: How does your credit score impact the homebuying experience?

Mortgage basics: 3 key steps in the homebuying process

Mortgage basics: How much house can you afford?

Mortgage basics: Buying or renting – What’s right for you?

Mortgage basics: Prequalification or pre-approval – What do I need?

How you can take advantage of low mortgage rates

Mortgage basics: Finding the right home loan for you

Quiz: How prepared are you to buy a home?

Uncover the cost: Home renovation

Mortgage basics: What is refinancing, and is it right for you?

Tips for realtors to help clients get their homeownership goals back on track

5 ways to maximize your garage sale profits 

Putting home ownership within reach for a diverse workforce

What’s the difference between Fannie Mae and Freddie Mac?

How jumbo loans can help home buyers and your builder business

Simple steps to be ready for a natural disaster

Checklist: financial recovery after a natural disaster

Pros and cons of a personal line credit

3 tips for saving money when moving to a new home

What’s a subordination agreement, and why does it matter?

Checklist: 10 things to look for when touring a home

How to sell and buy a home at the same time

Dear Money Mentor: What is cash-out refinancing and is it right for you?

Home improvements with the best ROI

How we did it: Converted to solar power

PCS moving checklist for military spouses and families

Crypto + Homebuying: Impacts on the real estate market

How I did it: Bought my dream home using equity

House Hacks: How buying an investment property worked as my first home

Managing the impacts of appraisal gaps in a hot housing market

Spring cleaning checklist for your home: 5 budget-boosting tasks

Saving for a down payment: Where should I keep my money?

Your guide to breaking the rental cycle

Checklist: 6 to-dos for after a move

What are conforming loan limits and why are they increasing

Uncover the cost: Building a home

The lowdown on 6 myths about buying a home

4 ways to free up your budget (and your life) with a smaller home

Get more home for your money with these tips

Money Moments: How to finance a home addition

First-time homebuyer’s guide to getting a mortgage

Dear Money Mentor: When should I refinance a mortgage?

Beyond the mortgage: Other costs for homeowners

10 questions to ask when hiring a contractor

What is an escrow account? Do I have one?

These small home improvement projects offer big returns on investment

Should you get a home equity loan or a home equity line of credit?

Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Is a home equity line of credit (HELOC) right for you?

How to use your home equity to finance home improvements

How does a home equity line of credit (HELOC) work?

Home equity: Small ways to improve the value of your home

Can you take advantage of the dead equity in your home?

4 questions to ask before you buy an investment property

10 uses for a home equity loan

Improving your credit score: Truth and myths revealed

What types of credit scores qualify for a mortgage?

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.