What Questions Should You Ask Before Buying a House to your Realtor?

We’re not going to beat around the bush: Buying a house is complicated. If you don’t pay attention, you could get in so far over your head that you end up broke—or stuck in a home that’s not a good fit for your lifestyle. But you can avoid this by asking a few smart questions!

16 Questions to Ask When Buying a House

1. What’s my housing budget?

Okay, the first question you need to ask yourself is: How much house can I afford? If you don’t ask this question when buying a house, you might go with whatever number a lender approves for you. And that could run you the risk of carrying a mortgage burden so large and for so long that you feel like Atlas after Zeus dropped the weight of the world on his shoulders for all of eternity.

To avoid living that nightmare, don’t take on a mortgage with payments that are more than 25% of your monthly take-home pay. This includes grown-up stuff like property taxes, homeowner’s insurance and (depending on your situation) private mortgage insurance and homeowners association dues. For an easy way to see how these costs affect your house-buying budget, use our mortgage calculator.

2. How much should I save for a down payment?

Speaking of budget, the next question to ask is: How much do I need for a down payment? If you have the money, the answer is 100%. It’s always a good move to buy in cash or put down as much money as possible to avoid a monthly mortgage that follows you around forever. Don’t worry about losing the tax write-off or whatever your broke friends tell you is a “sophisticated” financial move. Trust us, the math won’t work in your favor.

If you are getting a mortgage, aim for at least a 20% down payment. That way you can avoid paying for private mortgage insurance (PMI). If that’s not possible, don’t put down any lower than 10%. Otherwise, you’ll be killing yourself with extra interest and fees. So, if you’re getting a $300,000 house, you should save up at least $30,000–60,000 as a down payment.

3. How much are closing costs?

Another home-budget question you should ask is: How much do I pay for closing costs? For a ballpark estimate, you’ll likely pay around 2–5% of your home’s purchase price in closing costs. So if you’re buying a $300,000 home, you might have to pay $6,000–15,000 in closing costs. Make sure you save up a separate amount for closing costs before buying a house. That way, you won’t be tempted to steal the amount from your down payment.

4. WHAT IS THE MARKET LIKE IN THIS NEIGHBORHOOD?

Nobody wants to move into a neighborhood that's moving into a stretch of foreclosures. It can be obvious with some neighborhoods by the abandoned houses and for sale by bank signs throughout the streets, but other times, the neighborhood may be in decline and you won't know it until a few months after you've moved in. Ask your real estate agent about the neighborhood market, specifically if there's any concern that the neighborhood may decrease in desirability.

5. WHAT IS THIS PROPERTY WORTH?

Your real estate agent can't tell you what you should offer, but they can help you to compare similar homes in similar neighborhoods to see what price they sold for. By asking your agent the high and low price for similar properties (otherwise known as "comps" or comparables) you can make an educated offer on a home.

6. ARE THERE ANY SELLER'S DISCLOSURES?

Legally, a seller has to disclose any problems with the home. Ask your agent for these disclosures so you can know what's going on with the home and what state its systems and appliances are in before you make an offer.

7. What’s the neighborhood like?

Asking about the neighborhood is a big one. In fact, the quality of the neighborhood was the main reason recent home buyers (58%) chose their neighborhood. To give you an idea of what most home buyers care about when choosing a neighborhood, check out how these factors ranked below.

Top 10 Most Important Neighborhood Factors According to Home Buyers

• Quality of the neighborhood: 58%

• Convenient to job: 44%

• Overall affordability of homes: 41%

• Convenient to friends/family: 39%

• Convenient to shopping: 25%

• Design of neighborhood: 25%

• Quality of the school district: 24%

• Convenient to schools: 21%

• Convenient to entertainment/leisure activities: 21%

• Convenient to parks/recreational facilities: 19%

This list can give you ideas for questions to ask to see if a neighborhood is the best option or a deal-breaker for you. For example, ask if the neighborhood is close enough to things you’ll be doing during your everyday life—like driving to work, taking kids to school, buying groceries, and going to the gym. You’ll also want to ask what the neighbors are like if you can. Is the neighborhood safe for kids to play in the yard? Do dogs bark in the middle of the night? Have there been a number of crime reports?

Finding the answers to these questions will help you get a feel for whether or not a certain neighborhood is the right fit for your wants and needs.

8. What are the schools like?

Okay, as we learned in Question #7, nearly a quarter of all recent home buyers said the quality of the school district (24%) and the convenience to schools (21%) were important factors in choosing a neighborhood. And guess what else? The home characteristics that recent buyers were least likely to compromise on were school quality (4%) and distance from school (2%).

So, if you have (or plan to have) any kids, asking questions about the quality and distance 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 planted near good schools could make it more valuable when it’s time to sell.

9. Are there any problems with the house?

The answer to this question isn’t always easy to find. That’s why you absolutely need to get a home inspection before you buy. Sure, your seller is required to send a document that lists any known problems. But they could always leave something out accidentally (or intentionally). For example, ask if there were ever any major renovations done to the house. Who knows? A previous owner might’ve added a bedroom or a deck that isn’t actually up to code. Or maybe they’re trying to sweep a mold or pest issue under the carpet. Knowing about it before you buy can help you strike a deal during negotiations.

10. How old is the roof?

Most expert roofing websites say that an asphalt roof has a lifespan of around 20 years. So make sure you find out how many times Santa’s reindeer have clip-clopped their little hooves onto the roof of the house you’re looking to buy. If the roof is approaching the end of its life expectancy, it could cost you $7,000–10,000 to replace it on a 1,900-square-foot home. You don’t want a surprise roof replacement screwing up your budget.

10. How old are the appliances?

Imagine moving into your brand new house only to find out all the appliances are pretty much busted. If you know that certain major appliances are on their last leg before you buy the house, you could 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/dryer, refrigerator, stove and dishwasher.

11. How many days has the house been on the market?

This is another question that can help you be a smart negotiator. The longer a house sits on the market, the more buyers wonder if something is wrong with it. How long is too long? Every market is different. So ask your real estate agent to give you an idea for how fast houses are moving in the market where you’re shopping.

To give you an idea of what this looks like, the buying market tends to follow the seasons. It usually heats up in spring and cools down for winter. In fact, during the spring of 2019, homes sat on the market for a median of 45 days nationally. And, as the buying season cooled down for fall, homes were selling in about 60 days. So, if you find a home you’re interested in that’s been listed for well over two months (winter being the exception), you might be able to knock down the price or work out a deal that’s in your favor.

12. What are similar homes selling for?

Alright, now let’s dig into the home price. 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. Answering this question can help you see if the home you want to buy is set at a fair price. Just so you know , this is called a competitive market analysis (CMA).

13. What’s included when I buy?

You’ll definitely want to ask what’s included with the house you’re buying. Some states have different laws about the stuff that should be included in a home purchase. Just be careful not to assume you’re keeping all the appliances, lighting fixtures and window treatments when you make an offer. Later, you might find yourself upset when there’s a gaping, empty space in the kitchen where the refrigerator used to sit.

14. 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 deal with thinking about how to protect yourself. So ask if your new home is located in an area where it’s at risk of tornadoes, floods, wildfires, earthquakes or ice storms. Then make sure you’re covered for those natural disasters beyond what your homeowner’s insurance may cover.

15. HOW MUCH ARE THE PROPERTY TAX AND UTILITY BILLS?

It's always a good idea to plan a budget with your money to make sure you could afford the home itself. Obviously, get prequalified for a loan from your bank so you know what your monthly mortgage payment would be, but knowing some of the extra costs involved can help you plan ahead. (You can find the best home warranty company's worksheet about calculating how much you can afford to spend on a home here.) Asking what the property tax and utility bills cost for the house can help you ensure you can afford the home with your mortgage.

16. IS THERE PAPERWORK FOR THE MECHANICAL SYSTEMS?

Hopefully your seller is organized, because it will make your life much easier, especially if you end up purchasing the home! Ask for the paperwork on the mechanical systems and appliances throughout the home. There are so many horror stories of brand new homeowners who don't have any documentation on their systems and appliances within their home and something breaks down. If they don't have paperwork on the systems and appliances, it's hard to know if the mechanical systems are under warranty, or what they need for repairs and parts.

If the home comes with a home owners warranty, proper paperwork on all of the mechanical systems and appliances is imperative. Think of this home owners warranty as home repair insurance "“ it will take care of the systems and appliances that fail for a small service call fee, but they have to have failed from normal wear and tear. Without property documentation on those systems and appliances, it's hard for home warranty insurance to know what caused the failure.

When the state of the home's systems and appliances are documented, homeowners can relax, knowing the home is in good shape, and if there does happen to be a failure, their home warranty plans will cover the failure.

Whether you’re a first-time homebuyer or moving in to your second or third house, hiring the right real estate agent is crucial.

Contact Almaz Habteslassie, Executive Club Award Winner Habesha Realtor in DC, MD, VA & DMV area.

* There is so many reasons to choose her to be your real estate agent.

Here are 17 things that as a REALTOR® promise to do for you.

1. Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.

2. Refrain from exaggerating, misrepresenting or concealing material facts about a property; and is obligated to investigate and disclose when situations reasonably warrant.

3. Cooperate with other brokers/agents when it's in the best interests of the client to do so.

4. Disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

5. Avoid providing professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

6. Not collect any commissions without the seller's knowledge nor accept fees from a third party without the seller's express consent.

7. Refuse fees from more than one party without all parties' informed consent.

8. Not co-mingle client funds with the agent's own.

9. Attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

10. Not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, sexual orientation, gender identity or national origin.

11. Be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

12. Engage in truth in advertising and marketing.

13. Not practice law unless the agent is a lawyer.

14. Cooperate if charges are brought against them and present all evidence requested.

15. Agree to not bad mouth competition and agree not to file unfounded ethics complaints.

16. Not solicit another REALTOR'S® client nor interfere in a contractual relationship.

17. Submit to arbitration to settle matters and not seek legal remedies in the judicial