First-Time Homebuyers: Don’t Make an Offer Without Asking These Questions!

Buying a home or investment property is an exciting milestone, but it’s natural to feel a bit overwhelmed and unsure during the process. That’s why I created this guide to help you navigate the journey of purchasing your new home or investment with confidence.

I’ve compiled what I believe are the 7 essential questions every buyer should ask before making an offer. These questions are designed to help you prioritize your needs, spot potential red flags, and make an informed decision about one of the most significant investments of your life!

1. What is the total cost of ownership? This isn’t talked about enough!
   Beyond the asking price, other costs to consider when purchasing a home could include rising property taxes(this is a big issue in Boston), HOA fees for condos, insurance premiums(also rising significantly), utilities, and maintenance(drastically higher).  Make sure to factor all these hidden costs in before making an offer to ensure you stay within your budget.  Costs have exploded since the pandemic. One of the biggest issues I see is not having a good handle on deferred maintenance, but property tax hikes and insurance premium increases should not be overlooked.
   
   
2. Why is the seller moving?
   Understanding why the seller is moving can provide valuable insight into the property and their motivation to sell, which may open doors for negotiation. For example, are they moving because of a job transfer? Perhaps in that case they would need to sell faster and would be more open to a price negotiation. Are they selling because there is distress?  Perhaps you can be a solution for them.
   
   
3. How long has the property been on the market?
   Homes listed for an extended period might signal pricing issues or potential red flags. Have offers fallen through? This is more noticeable now than in recent years.
   
   
4. What’s included in the sale?
   Confirm whether appliances, fixtures, or other features are included to avoid surprises. For example, you may assume the refrigerator or washer and dryer are included, but the seller may plan to take them unless explicitly stated in the agreement.
   
   
5. Are there any major repairs or updates needed?
   Check the age and condition of key systems like the roof, HVAC, plumbing, and electrical.  I see this being overlooked often and can be a critical mistake down the road. Replacement costs of systems can rise incredibly quickly leaving you financially burdened.
   
   
6. Have there been any recent renovations or repairs?
   Ask for permits and warranties to ensure updates were done professionally and are covered. I always advise pulling a full permit jacket on all properties to assess the level of work done or not done.
   
   
7. What contingencies should I include in my offer?
   Protect yourself with contingencies for financing, inspections, and appraisals to address potential deal-breakers.  Many inspections were waived in the hot housing markets of the post pandemic era, and this is causing a lot of buyer remorse, but you can be playing with fire by waiving certain contingencies.
   
   

Whether you’re buying, selling, or just curious about the market, I’m here to help with my data-informed strategy.. Feel free to reach out to me anytime at chris@fitzpatrickre.com to start the conversation!