By: Karen Leaphart
Simply put, buying a home is one of the biggest investments you’ll ever make. And asking your realtor a few questions—before he or she walks you through a property—can help you be confident you’re getting the most for that investment.
- Should I get preapproved for a mortgage? Based on your income, debt and credit history, your preapproved mortgage amount will give you a clear idea of what you can afford, so you can search for houses in your price range. It will also put you in a better position to make a serious offer when you find the right house.
- What’s this property worth in today’s market? Your agent can help you get prices of similar homes nearby that have recently sold, along with the length of time the house you’re looking at has been on the market. This will help you determine whether the house is overpriced.
- Is anything wrong with this house? Make sure you get disclosure forms and have the home professionally inspected. Knowing the things you need to fix or upgrade help you fine-tune your offer, and give you some extra confidence that you know what you’re getting.
- What will it cost to live here? Along with repairs or upgrades, it’s important to know how much you’ll pay in taxes and utility bills. These amounts, combined with your mortgage and homeowners insurance, will paint a better picture of the total monthly cost of the house.
- How is the location? Check into the neighborhood’s crime rate and school district report card, all of which affect the home’s value … and your future happiness.
- How much should I offer? It’s a fine line between offering too little and offending the seller, and offering too much and losing money that could be spent on moving expenses or upgrades. In addition to your realtor, ask for advice from someone you trust and go with your instincts.
EXTRA! Four property features that can drive up your home insurance rate.
- Backyards with built-in fun, such as pools or trampolines—Make sure fences have locks and that pools can be covered to avoid accidents.
- Houses near a coast, river or wildfire area—Check to see if the house has additional waterproofing, or if it was built with disaster-resistant materials.
- Houses far from fire departments or hydrants—The closer you are to life-saving resources, the lower your rate.
- Older houses, with older features and systems—Home insurers view these as higher risks, and that means higher insurance rates.
For more information on insuring a home, visit progressive.com/homeowners, or call 1-800-776-4737. We provide homeowners insurance from select carriers with our Progressive Home Advantage® program.
Sources:
http://www.bankrate.com/finance/real-estate/7-questions-buying-home-2.aspx
http://www.coldwellbanker.com/real_estate/learn/important_questions_to_ask_when_buying_a_home
http://www.realtor.com/home-finance/insurance/buying-new-house-insurance-implications.aspx
http://homes.yahoo.com/news/why-your-home-insurance-rate-is-high-010043699.html
http://money.cnn.com/magazines/moneymag/money101/lesson8/index.htm
Original Article: http://www.progressive.com/AtProgressive/Questions-to-ask-before-buying-a-house.aspx
Monico Segura - Realtor 
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