Whether you are a first time home buyer, or a seasoned Windsor property owner, there are certain questions every person should ask before making an offer on a home. The three main issues all buyers should address:
The offering price
The condition of property
The location of property
Before you fall in love with any home, some careful research needs to be done so you can get an accurate idea of the home’s value.
So let’s start with the asking price of a home. Remember, the “asking” price has little to do with the value of a property or the price a buyer may want to offer. It’s good to know as much background information as you possibly can.
1. What did the seller pay? For example, if the seller bought the house during the housing crisis a few years ago, chances are, they haven’t made much of a profit. So if they are asking well above what they paid for it, there is a possibility the price is inflated.
2. What have similar homes in the neighbourhood sold for? Talk with your real estate agent and review comps from nearby homes to see how your property measures up. An agent can always tell you if a home is overpriced.
3. How many offers has the seller received? If the answer is none, yet it’s been on the market for a while, then you may very well have some wiggle room. However, if the property is receiving multiple offers, then you will need to make a very strong, competitive bid.
4. How long has the property been on the market? Again, if the home has been on the market 60 days, you may be able to get a good discount on the property. Any home that doesn’t get an offer or many buyers touring the property after 30 days may be overpriced.
The Condition Of Home:
Before making any offer, a buyer needs to take a careful look at the property to see what its current condition is.
1. How old is the roof? Is it in need of any repairs? Does it leak?
2. How is the insulation? Is it in the attics and walls? This is particularly important as we live in a cold climate.
3. What is the foundation of the home? Have there been any problems or repairs?
4. What is the age of the appliances? If older, are parts available if repairs are needed?
5. Have air conditioning/heating services been replaced recently?
6. If an older home, is the plumbing and electrical updated?
Location of Home:
We have all heard it a thousand times, but it can always bear repeating: “Location, location, location.” It’s really quite simple: Homes in sought after, desirable areas are worth more than homes that are not. And while you may be buying a home, and the last thing you are thinking about is selling it, at some point, you may need to and homes in good locations sell faster and at a much higher price. So yes, location is crucial.
1. What other properties are located nearby? By this I mean is the house surrounded by industrial, commercial and apartment buildings?
2. What are the schools like? Are the close? Do they have excellent reputations?
3. Is it close to shopping, entertainment and other resources?
4. Is the property located on a busy road? Is traffic a concern or the noise factor. Homes on busier roads are harder to sell.
5. What do other homes look like in the neighbourhood? Are the majority of them rentals? Or owner occupied? While it may be quiet during the day, drive through in the evening and see what happens in the area at night. It’s always interesting how a street can change when people get home from work.
It’s great to fall in love with a property and as I mentioned above, for first time home buyers it’s always a good sign to find a home that makes you want to write an offer right away. But as a real estate agent for over twenty years, it’s my job to make sure that you know exactly what type of home you may be purchasing. Overall, you want to make sure it’s a good investment down the road. And issues happen every single day as the last several years can tell you. Jobs can be lost or transferred, income can go way down, so if you need to sell your home, for any reason, then you want to make sure you can sell it quickly.
So again: research asking price and ask detailed questions about the condition and location of home.