Buying a home is one of the biggest financial decisions you’ll ever make, with the typical home seller in 2023 receiving a median price of $405,000 for their property.1
To ensure you’re making a smart investment, it’s crucial to ask your realtor some uncomfortable but essential questions before signing on the dotted line. Here are 25 questions you need to ask, and why they matter.
1. What’s the crime rate in this neighborhood?
While it might feel awkward to bring up, understanding the safety of your potential new neighborhood is essential. Request specific statistics on property crimes, violent crimes, and any recent trends.
A good realtor should be able to provide this information or direct you to reliable sources.
2. Have there been any deaths in the property?
In some states, realtors are legally required to disclose if a death has occurred in the property, especially if it was due to a violent crime or suicide. However, even if it’s not mandatory, it’s worth asking directly.
Knowing the property’s history can help you make a more informed decision and avoid any surprises down the line.
3. Are there any known hazards or environmental issues?
From lead paint and asbestos to radon and mold, many older homes come with potential health hazards. Inquire about any known issues and whether they’ve been addressed.
If your realtor seems unsure, consider hiring a professional inspector who can assess the property thoroughly.
4. What’s the noise level like at different times of day?
Visit the property at various times, including rush hour and late at night, to gauge the noise level. Is there heavy traffic nearby? Are there any bars or nightclubs in the area that might cause disturbances?
Your realtor should be able to give you an honest assessment based on their knowledge of the neighborhood.
5. How old are the major systems & appliances?
Don’t be afraid to ask about the age and condition of the HVAC system, water heater, roof, and major appliances. Replacing these can be costly, so it’s essential to factor their lifespan into your budget.
A knowledgeable realtor should have this information on hand or be able to obtain it from the seller.
6. Are there any planned developments or construction projects nearby?
New construction can significantly impact your quality of life, from noise and traffic to changes in property values. Ask your realtor about any upcoming projects in the area, such as road expansions, commercial developments, or new housing complexes.
They should be knowledgeable about the local zoning laws and any potential changes on the horizon.
7. What are the neighbors like?
Your neighbors can make or break your living experience. While your realtor might not know them personally, they should have a general sense of the neighborhood’s demographics and culture.
Are there many families with young children? Is it a tight-knit community or more transient? Don’t hesitate to knock on a few doors and introduce yourself to get a firsthand impression.
8. How long has the property been on the market?
If a property has been listed for an extended period, it could be a sign of underlying issues or an unrealistic price point. Ask your realtor about the property’s history, including any previous sales that fell through and why.
This information can give you valuable insight into the seller’s motivation and potential negotiation leverage.
9. What’s the seller’s reason for moving?
Understanding the seller’s motivation can help you gauge how flexible they might be on price or contingencies. Are they relocating for work, upsizing, or downsizing?
Have they already purchased another home? While your realtor might not have all the details, they should be able to provide some context based on their interactions with the seller or their agent.
10. How much have similar properties recently sold for?
To determine if a property is fairly priced, look at comparable sales in the area, often referred to as “comps.” Your realtor should provide a comprehensive market analysis, including recent sales of similar homes in terms of size, age, and features.
Pay attention to any significant price discrepancies and ask for an explanation.
11. What’s the total cost of ownership?
Beyond the mortgage payment, there are numerous other expenses to consider, such as property taxes, insurance, HOA fees, and utilities. Ask your realtor to break down all the monthly and annual costs associated with the property.
This will give you a clearer picture of the true affordability and help you budget accordingly.
12. Are there any issues with the title?
A clear title is crucial for a smooth transaction. Inquire about any liens, encroachments, or easements that could affect your ownership rights. Your realtor should work closely with a title company to research the property’s history and ensure there are no outstanding claims or disputes.
If there are any red flags, it’s better to know sooner rather than later.
13. What’s the condition of the foundation & structural elements?
Foundation issues can be one of the most expensive problems to fix in a home. Ask your realtor if they’re aware of any past or current foundation problems, and request to see any available inspection reports.
If you have concerns, consider hiring a structural engineer to assess the property’s integrity before making an offer.
14. Are there any signs of pest infestations?
Look for signs such as droppings, wood shavings, or mysterious holes, and ask your realtor about the property’s pest history. If you live in an area prone to certain pests, consider having a specialist conduct an inspection.
15. What’s the age & condition of the plumbing and electrical systems?
Outdated or faulty plumbing and electrical systems can lead to costly repairs and even safety hazards. Ask your realtor about the age of these systems and when they were last updated.
If the property has ancient knob-and-tube wiring or galvanized pipes, factor in the cost of replacement when considering your offer.
16. Are there any zoning restrictions or CC&Rs?
Zoning laws and Covenants, Conditions, and Restrictions (CC&Rs) can limit what you can do with your property, from running a business to parking an RV. Your realtor should be familiar with the local regulations and any neighborhood-specific rules.
Make sure to review these carefully to ensure they align with your lifestyle and future plans.
17. What’s the parking situation?
In densely populated areas, parking can be a precious commodity. Ask about the number of assigned spaces, as well as any restrictions on guest parking or street parking. If you have multiple vehicles or frequently host visitors, consider how this might impact your daily life.
Don’t forget to factor in any additional costs for parking permits or garage rentals.
18. Are there any easements or encroachments?
Easements grant someone else the right to use a portion of your property, such as a shared driveway or utility access. Encroachments occur when a neighboring structure extends onto your property, like a fence or shed.
Both can impact your use and enjoyment of the property, so it’s crucial to have a clear understanding of any existing agreements or disputes.
19. What are the school district boundaries & rankings?
Even if you don’t have children, school quality can significantly impact property values and resale potential. Ask your realtor about the assigned schools and their current rankings, as well as any anticipated changes to district boundaries.
If education is a top priority, consider scheduling a visit to the schools to get a firsthand impression.
20. Are there any common neighborhood nuisances?
From barking dogs and loud parties to parking disputes and unkempt yards, every neighborhood has its quirks. While some issues might be apparent during your visits, others may only surface after move-in.
Speaking with current residents can also provide valuable insight into the community dynamics.
21. What’s the average utility cost?
Utility expenses can vary significantly depending on the property’s size, age, and energy efficiency. If the property has unique features like a pool or hot tub, consider how they might impact your bills.
Reviewing the seller’s past utility statements can give you a more accurate picture of what to expect.
22. Are there any potential natural hazards?
Depending on the location, your property might be susceptible to natural disasters such as floods, earthquakes, or wildfires. Inquire about the property’s risk level and any past incidents.
If you’re in a high-risk area, ask about the availability and cost of specialized insurance coverage.
23. What’s the history of insurance claims on the property?
Insurance claims can provide valuable insight into a property’s past issues, from water damage and roof leaks to theft and vandalism.
Your realtor should be able to obtain a CLUE (Comprehensive Loss Underwriting Exchange) report (ref), which lists all insurance claims filed on the property in the past seven years. Review this carefully and ask for clarification on any concerning incidents.
24. Are there any unusual odors or signs of mold?
During your property visits, pay attention to any musty or chemical odors, especially in basements, attics, and bathrooms. If you notice any visible signs of mold or water damage, ask your realtor about the extent of the issue and any remediation efforts.
In some cases, it might be necessary to hire a mold inspector for a more thorough assessment.
25. What’s the worst thing about this property?
Every property has its drawbacks, and a good realtor should be upfront about them.
Whether it’s a less-than-ideal layout, limited parking, or high utility costs, knowing the downsides can help you weigh the pros and cons more effectively. If your realtor is evasive or dismissive of this question, it might be a red flag.
Source:
1. National Association of Realtors
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Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.