Buying a home is thrilling, sometimes weird, often tiresome, and never dull. You’re putting down a huge wad of cash for a home you’ll inhabit hopefully for years to come. As such, you’re bound to have a lot of questions throughout every step of the process. So to assist you, Bayutech Properties spill the beans on most common questions buyers ask—and the answers, of course. You’re welcome on board.
What home can I afford?
That depends, of course—on your income and other financial obligations; And do it before you start shopping. If you see houses you love outside your price range, it opens you up to disappointment. Meet with a Mortgage company to get pre-approved for a home loan (added bonus: pre-approval makes you much more attractive to sellers).
Can I buy a home and sell my current one at the same time?
Yes, you can—but it’s the real estate equivalent of walking a tightrope. On the one hand, if you buy a home before you sell the one you’re in, you’re overextended financially; if you sell before you buy, you might need to rent awhile before finding a new place. But there are ways to do both at once, and one option is to instate a “sale contingency” in your contract. This means you only agree to buy a home if you can sell the one you’re in. The only downside is if your seller doesn’t agree (which is possible if they want the timing set in stone).
How many homes should I see before making an offer?
It’s up to you as an individual. While home shoppers these days can look at hundreds of homes online, they only try to check out 10 homes on average before they put in an offer. But keep in mind, this varies tremendously for each person. Some people find their home within hours of hunting. For others, it takes months. If you want to streamline the process, it can help to narrow in on a particular neighborhood you’re keen on; that said, if you feel limited by your options, it may be time to expand to surrounding areas.
What do you think the seller will accept as a fair price?
As a rule, knocking 5% off the asking price won’t raise any tempers. If it’s been sitting on the market for months, you can venture below that, but the bottom line is, you never know how low a seller will go, as they have different motivations for selling. If the sellers are eager to move, you could be very lucky and score a deal.
How do I know if the property is a good deal?
While there’s no crystal ball on whether a certain home is a bargain and will appreciate, rest assured that with research, you can keep surprises to a minimum. The best way is to check out what similar properties are selling for in the area and whether those prices have been going up or down in the recent past.
How quickly can I close?
Typical escrow periods are 10 to 20 days. This gives you enough time to do the investigation on the property and get a loan completed if you’re buying with mortgage, and yes, this due diligence counts.
Should I get a home inspection?
While buyers often wonder if a home inspection is truly necessary, Bayutech Properties unequivocally say yes, yes, and yes. A home inspector takes a weight off of your shoulders by looking into the condition of the roof, electricity, ACs and air, plumbing etc. Ensuring these things work prevents you from paying to fix them in the future. If some things are not up to par, you can negotiate with the seller to get those fixed before you sign the paperwork.
When can I back out if I change my mind?
While buyers can always back out of a deal, doing so without good reason may forfeit their earnest money (the cash put down to secure the offer, typically around 1%-2% of the home’s price). But there are some ways to walk with your earnest money in hand.
Upon an unsatisfactory home inspection, the buyer can ask for their deposit back. Another loophole is subject to appraisal. That means you can back out if the lender (Mortgage company) for your loan doesn’t think the property is worth what you offered.
Home buyers aren’t the only ones with questions; home sellers have plenty on their minds, too.