Things You Might Forget to Ask and Consider When Purchasing Real Estate

We've listed some important (and sometimes less obvious) questions to ask and research as you consider purchasing a particular home.

How long do you plan on living in your new home?

Buyers should always look at a worst case scenario and plan an exit strategy. Circumstances in life can chage rather quickly--death, divorce and loss of employment are just a few factors that could necessitate the need to sell your home shortly after buying it. One must consider how easy it would be to sell the home and how desireable it would be to another person to buy it. Often, a buyer will not even break even on paying for closing costs until several years after the purchase.

What is the home price appreciation rate in a particular town?

Some buyers with a small downpayment can easily get stuck 'upside down'. This means that the mortgage and all of the costs associated with buying the home and eventually selling it exceed the value and future purchase price of the home. In an area with slow appreciation or even depreciation, sellers can be stuck with a loss. One must be careful to factor in the original closing costs during the purchase and the real estate broker commission and seller closing costs when considering net seller proceeds.

What is my credit score?

Your credit score will be the single-most important factor in determining what type of mortgage and interest rate you are eligible for. You should know what your credit score is prior to even considering purchasing a home. Often, incorrect information is included on the report and it can take considerable time and effort to have the credit bureaus make corrections. If you have already committed to purchasing a home before checking your credit and mortgage options, even a slightly negative item can cost you much higher closing costs and an elevated monthly payment.

Are there community pools, playgrounds or walking trails nearby?

Recreational opportunities improve the desireability of a community and are a good indication of the the town's investment into infrastructure.

Will snow removal be difficult and time consuming?

It is a certainty that residents of our area will experience snow during the winter. One must consider how easy it would be to remove snow from driveways and walkways and whether a snowblower or snowplow will be needed. In addition, having to hire someone to plow is an extra expense for an owner to consider.

How far away is the hospital, grocery store, post office, bank, park, gas station, and schools?

With gas prices on the rise, peope are becoming more consious about how far they travel for the basic amenities and conveniences. Those with health concerns need to consider their proximity to medical resources.

Is there high-speed internet access available?

Nowadays, high-speed internet access is practically a necessity and is especially important for those who plan on telecommuting or working from home.

Is the school district a good fit for my child?

School district desireablity is an important factor when determining the value of a home. Test scores, expenditures per pupil, student-to-teacher ratios and other data can be found in our Local Resources section of our website.

What will my neighbors be like?

Since they will be your future company, it would be a good idea to introduce yourself to neighbors prior to purchasing a home. In addition, they can provide alternate opinions about the benefits and drawbacks of living in their neighborhood area.

Is the neighborhood always this quiet?

Traffic and noise levels can vary considerably depending on the time of day you visit a home. It would be wise to return to a house to check the traffice level during the rush hour and to check the noise level at night. If train tracks are close by, check the train schedule and be present to listen as the train passes by the home.

Are there several homes for sale or apartments for rent in the area?

High turnover in the area could be an indication of many not so apparent negative factors that could make it much more difficult to re-sell your home when the time comes.  High inventory can also indicate an oversupply of housing.

What are the zoning restrictions?

Those that plan on working from home or operating a home-based business need to be particularly careful to check with the local town about allowable business uses for an individual home. Also, a buyer should note whether the home is eligible for use as a multi-family property if considering renting the home to multiple tenants.

Is flood insurance required?

When flood insurance is required, it can often dramatically increase a purchaser's monthly payment and even increase the payment to the point where the buyer can no longer qualify for the mortgage program. Furthermore, it is critical take a more in-depth look at drainage, evidence of past water damage and the potential for future property damage.

Is the home setback far enough from the road?

Traffic noise, pollution and safety are a concern when a home is situated close to the road.

Is there adequate drainage?

Even the best sited homes can be suseptible to entering water during a heavy downpour or extended period of raid. Note whether there is adequate drainage, particularly when the house is near an incline.

How long ago did the owner purchase it? For how much?

This can give a buyer clues about the seller's motivation for selling the home. A short period of time can indicate that the seller has made only small superficial changes to home to try to flip it at a much higher price. A short period might also indicate that the owner is in some sort of financial stress or is having difficulty meeting their mortgage obligations. If the owner purchased the home a long time ago, it is vital to evaluate their level of maintanace. A buyer should note how often systems have been serviced and the evaluate the general wear-and-tear to get clues about a long-time owners maintanence habits.

Any plans for new construction in the vicinity?

New construction in proximity to your home can make your priceless view disappear, increase the noise and traffic level and make your house less desireable. Construction and development (when done properly) can also increase the value of your home.

Any right-of-ways, other easements or deed restrictions?

A deeded right-of-way allows other individuals to have access to your property. Utility easements can alse negatively effect the desireabilty of your home. Deed restrictions can limit the size, type and kind of buildings that can be built on the property.

When was the septic last pumped and inspected?

A septic dye test can provide some insight about potential septic problems, but a septic inspection and pumping is much more conclusive about the condition of the system.

Are there any local, state or federal wetlands on the property?

Development of an individual property can be restricted where wetlands are designated.  Buffer zones on other properties can also limit development on a subject property.

Are there cell towers or high-wattage power lines nearby?

A high level of repeated exposure to cell towers and high-wattage power lines has been correlated with cancer.