If you are a first-time homebuyer you probably have a million questions running through your head. While your local REALTOR® will help guide you through the process, it’s important to educate yourself and ask the right questions to ensure a home is right for you and that you are making the best financial decision for your family. 

The Offer
Your REALTOR® will be your best source for information when it comes time to write up an offer, but the more information you get, the more you can tailor your offer to increase your chances of getting that perfect home. 
Steve Osmar, REALTOR® with RE/MAX Real Estate Professionals, says buyers should always ask about the current real estate climate. 

“What is the number of listings compared to this time last year?” he asks. “Currently, listings are down, so prices are rising. Even if you look at the comparables from the same subdivision last year, prices will be higher now because of the lower inventory.” 

When putting together an offer it may also help to ask questions about the seller. Why are they moving? How long have they been trying to sell the home?

 
“If you can get information about the seller’s motivation it can help, but you may not always be able to find out,” said Osmar. “For instance, if they are starting a new job in a new city, or if they have already bought their next home, they may need to sell quickly and may be more willing to negotiate.” 

Finding out how long the home has been on the market is also helpful. If a home has only been listed for a few days, chances are the sellers won’t be willing to accept a lower offer. 

“I would also suggest asking if there are other offers are on the table,” said Osmar. “We are seeing a lot of properties with multiple offers, so if there is another offer that the seller has not yet responded to, a buyer will absolutely want to know that.” 

Condition of the Home
Knowing the condition of a home will help you determine whether or not you even want to make an offer. If there are issues, you may take that into consideration when drawing up your offer. Many experts advise asking questions like, how old is the roof? What type of foundation and insulation does the home have? How old are the appliances? Have any of the home’s major mechanical systems been replaced? Some of these questions may be answered on the seller disclosure, so be sure to give that paperwork a thorough review. 

Osmar says prospective buyers should also ask if the home will qualify for the type of financing used. 

“For buyers using FHA, VA, or rural development loans, the houses will have to meet certain standards,” he said. “Some foreclosures or distressed properties may be priced right to offset issues, but if you’re using one of these loans, the home may not even qualify due to the condition.” 

Other considerations 
For buyers with young children, finding out about neighborhood schools and safety is important. Your REALTOR® can help point you in the right direction for information, but you can also do some research online, or set up a time to tour the local school and talk to the principal. 

You may also want to ask if there are any known major changes planned for the area, like plans to build a nearby highway or plans for nearby new home construction. If you are moving into a condo association, Osmar suggests asking about potential influences on costs.

“If your condo development has plans to replace all the roofing, they may charge an assessment if they don’t have enough in the reserve, which will be an extra cost to you,” he said. “Whenever you are buying into a condo association, you want to ask for copies of the financial statements to ensure they are financially sound.” 

Remember, in today’s market, chances are you will have to act quickly, and may not have a lot of time to ask all of your questions. Make sure you are working with an experienced, local REALTOR® who will work on your behalf to help you find that dream home and make sure it is the right fit for you. Visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com to find a listing of area REALTORS® and mortgage professionals who can help.