13 Questions to Ask When Buying a House

Questions to Ask a Real Estate Agent When Buying a House

Once you’ve got a picture of your dream home and a realistic budget, a real estate agent can support you on your search. A buyer’s agent, or real estate agent who works with buyers, may provide you with valuable insights and can negotiate with sellers on your behalf. Since they can play such a crucial role, here are some questions you may want to ask:

4. What’s Your Background and Experience?

A real estate agent’s experience can provide insights into how helpful they may be, especially if you’re a first-time homebuyer. You may ask how long they’ve been in business, whether they specialize in certain locations or types of homes, whether they work exclusively with buyers or with sellers as well, and what their track record is for finding people their dream homes.

The answers to these questions can help you feel confident that you have someone with expertise guiding you on your homebuying journey.

5. What’s Your Communication Style?

Beyond their experience, you’ll also want to make sure your buyer's agent communicates with you in a way that’s helpful to you. Things to think about are:

• Do they prefer texting, email, or hopping on a phone call?
• Are they proactive in pointing out potential issues with a home, or do they let buyers take the lead?
• Are they the person who will be speaking with you, or will other people also be helping?
• What days and hours are they available if you need to contact them?
• What does their communication look like during negotiations with sellers?

Make sure you feel comfortable contacting your agent when you need them, in a way that makes sense for your lifestyle.

6. What Are Your Fees?

Buyer’s agents typically work for commission. This means they will receive a fee that’s typically a small percentage of the house's sale price. Confirm their costs and avoid situations where fees aren’t transparent or well communicated upfront.

Real estate agent fees don’t always fall on the buyer, depending on how the agreement is structured. But knowing exactly what you are—and aren’t—responsible for is important.

Questions to Ask a Seller or Their Agent When Buying a House

A house’s listing or its seller disclosure can give a homebuyer valuable insights into a property. Reviewing these documents and asking the seller or their real estate agent questions directly can help you as you search for your dream home.

7. What Are the Property Taxes for This House?

Even after you’ve paid off your mortgage, you’ll still owe taxes on the property. Consider reviewing historical tax records, searching online for a property tax estimator, or checking with the seller’s agent to get a better idea of what type of taxes might be included in your monthly mortgage payments. Keep in mind that even if you have a fixed-rate mortgage, property tax fluctuations can impact your monthly payment and affordability.

8. What Major Repairs or Renovations Have Been Done on the House?

Knowing what work has been done on the property over its lifetime can help you identify areas for potential negotiation. Home repair histories provide transparency about what projects you’re taking on if you buy the house and can give you context for potential problem areas.

For example, a house that hasn’t had its roof replaced in 20 years may need to be fixed or replaced within the next decade. But a furnace that was just replaced may offer peace of mind for energy efficiency and utility budgeting.

This information may be helpful during negotiations, too. You might ask for a lower price in anticipation of needing to make a major repair in the near future, or you might be willing to pay the asking price if the appliances are all new.

9. What Appliances or Furniture Are Included?

A seller may offer to leave behind certain appliances, furniture, or other items. Knowing whether a washer, dryer, or other major appliance is included in the home’s purchase price can help you understand what you’ll need to buy and whether it affects your move-in timeline.

Like repairs and renovations, you’ll also want to ask about the age and condition of any furnishings left behind. An older appliance may lead to an unexpected short-term cost, so its age and condition may be part of your considerations.

10. Does the House Sit in Any Natural Disaster Zone?

While you may have considered this when deciding on a location, clarify with the seller which natural hazards affect the house, and verify the information through seller disclosures, local records, or other official sources. The likelihood of severe storms, earthquakes, flooding, or other natural disasters can impact more than just your home.

These natural events can skyrocket the cost of home insurance. So, if this house is otherwise ideal, you’ll want to make sure you’re able to afford the right kind of coverage for the house.

Questions to Ask When Making an Offer or Closing on a House

Once you’ve found the right property, you’ll make an offer on the house. If the offer is accepted, you’ll move into the mortgage closing process, which comes with its own questions to help you make a competitive offer or save money.

11. Are There Any Other Offers on the House?

You’ll first want to find out how many offers have been made on the house. The seller’s agent may be able to tell you how much interest the house has generated. This can help inform how much you’ll decide for your offer.

For example, if a seller agent says they’ve received a high number of offers, you may want to make a higher offer. If there’s less interest, you may want to consider making a slightly lower offer. However, you should discuss with your agent what type of offer is most competitive.

12. What Contingencies Should I Include in My Offer?

When you make an offer on a house, you may have the opportunity to include certain contingencies in the purchase agreement. These contingencies can help protect your earnest money deposit in certain situations. Possible contingencies could include:

• Appraisal gap contingencies: Home loans are typically offered only for the appraised value of a house. If the appraisal value comes in lower than the offer, an appraisal gap contingency will outline how that will be resolved.
• Financing contingencies: Even if you’ve been prequalified or preapproved for a home loan, a financing contingency can allow you to withdraw the offer if you’re unable to secure financing within a deadline.
• Home sale contingency: If you need to sell your current home before closing on your new home, this contingency allows you to withdraw your offer and return the earnest money if your current home doesn’t sell within a specific time frame.
• Inspection contingency: You may request a home inspection before finalizing the sale. If the inspection finds significant issues, you may be able to negotiate a lower sale price or end the purchase agreement.

Discuss what contingencies to include with your real estate agent. They will help you understand what’s typical in the local market and what might impact the success of your offer.

13. What Happens if My Offer Is Accepted?

Once your offer is accepted, you’ll be bound by the terms of the purchase agreement. Your real estate agent may have helped you draft the offer, and they can help provide clarity on what comes next. Typically, once an offer is accepted, the following steps happen:

1. Earnest money is transferred: Your deposit is placed in an escrow account. The earnest money may be between 1% and 3% of the sale price but varies by market.
2. Home appraisal: Your lender will have the home appraised to ensure the home's market value is at least equal to the loan amount.
3. Shop for homeowners insurance: You’ll need homeowners insurance for your new home. This is a requirement for lenders to fund your home loan.
4. Underwriting: Your mortgage lender will need financial documents from you to finish approving your home loan. Once approved, you’ll receive a clearance to close.
5. Final walk-through: You’ll complete a walk-through to verify the house's condition. If you had agreed that repairs would be done, you’ll verify that they’ve been completed.
6. Closing: You’ll sign the documents, either in person or electronically, agreeing to the terms of your loan and completing the transfer of ownership. This is also when you’ll pay any closing costs.

Once closing is complete, the house is yours!

Final Thoughts: Homebuyer Questions

Buying a house is a major milestone, and you should feel confident in your decision. Ask questions to understand your finances and the role of your buyer’s agent to help find your ideal home.

If you’re ready to start shopping for your new property, explore your savings with Freedom Mortgage home loans and consider getting prequalified today.