When purchasing a home, most buyers focus on the fundamental questions about price, location, and the general condition of the property, however, there are several other crucial questions that buyers often overlook, which can significantly impact their decision.
READ: Important red flags in property deals to look out for
This is according to Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, who adds: “It’s also common – and understandable - for emotions to run high when looking for the perfect property to call home, but decisions based largely on emotion often lead to regret and financial strain down the line, so it’s important to approach the process with a clear and level-headed mindset and to balance enthusiasm with a pragmatic approach.
“And to this end, asking pertinent questions during a home viewing is not just a formality; it's a strategic approach to home buying as the information you gather empowers you to make decisions aligned not only with your preferences, but also your budget and long-term goals.”
Odendaal says that the following essential questions will help buyers to make a more informed choice:
How Long Has the Property Been on the Market?
The duration a property has been on the market can reveal a lot about its desirability and pricing. A home that has been listed for an extended period may be overpriced or have underlying issues so if a property has lingered on the market, buyers should ask why and consider conducting a more thorough inspection or negotiating a lower price.
What Is the History of the Property?
Knowing the history of the property, including past ownership and any significant events, can help buyers understand what they are purchasing. Ask about any major renovations or repairs that have been done, and request documentation to ensure the work was completed to a high standard. Additionally, inquire about any past problems, such as water damage or structural issues, to avoid unexpected surprises.
Why is the Seller Moving?
Understanding the seller’s motivation for moving can provide valuable insights into the property and the neighbourhood. If the seller is relocating for positive reasons, such as a job transfer or upgrading to a larger home, it may indicate a desirable area. Conversely, if the seller is moving due to issues like neighbourhood disputes, crime or poor local amenities, or isn’t keen to divulge the reasons, it’s a red flag that warrants further investigation.
What Are the Average Running Costs?
Utility costs can vary widely depending on the property’s size, age, and location so request information on the average monthly utility bills, including electricity, water and property taxes. This will help buyers budget more accurately and avoid any financial surprises after moving in.
Are There Any Homeowners Association (HOA) Fees?
If the property is within a community governed by a homeowner’s association, it’s crucial to understand the associated fees as well as the rules and regulations. Ask about the monthly or annual fees, what they cover, and any potential special assessments. Additionally, review the HOA’s rules and regulations to ensure they align with your lifestyle and expectations.
Are There Any Environmental Concerns?
Environmental factors can impact your health and property value. Inquire about any known issues, such as proximity of flood zones or hazardous sites. Additionally, ask if the property has been tested for lead paint, asbestos or mould, especially if it’s an older home.
What Is Included in the Sale?
Clarify what’s included in the sale of the property to avoid any arguments later and knowing what stays and what you need to replace can help you plan for any additional purchases you may need to make after moving in. Items like kitchen appliances, light fixtures, window and outdoor equipment might be negotiable.
What Are the Future Development Plans for the Area?
Future development in the area can significantly impact property values and living conditions. Ask the estate agent about any planned infrastructure projects, new commercial developments or zoning changes in the area. While some developments, like new parks or schools, can be beneficial, others, such as new industrial sites or a block of flats which will block the view, might detract from the property’s appeal.
What Are the Local Amenities and Services?
Beyond the basics like schools and shopping centres, buyers should ask about other amenities and services that might affect their quality of life. These can include parks, recreational facilities, healthcare services, public transportation options, and places of worship. Proximity to these amenities can enhance daily living and potentially increase property value over time.
What Is the Neighbourhood Like?
This may seem like a broad question, but a neighbourhood’s character can greatly influence your satisfaction with your new home as well as the property value down the line. Ask the estate agent about the demographic makeup of the area, noise levels, and the overall community vibe. It’s also beneficial to visit the neighbourhood at different times of the day and week to get a true sense of what it’s like to live there.
“Asking these often-overlooked questions can provide a more comprehensive understanding of the property you’re considering,” says Odendaal.
“Being well-informed allows you to make a smarter investment and ensures that the home you choose truly meets your needs and expectations. Don’t hesitate to dig deeper and gather as much information as possible to make the best decision for your family and your future.”
READ: What to consider when buying a home
Antonie Goosen, the founder and principle of Meridian Realty, firmly believes that the journey from tenant to homeowner is a transformation worth pursuing. It's not merely a shift in address; it's a pivot towards establishing a solid foundation for your future and your family's well-being.
Here is a recap of Goosen's three key facets to consider when embarking on this journey: (read full article here).
1. How to Prepare:
Evaluate your financial situation: "Take a close look at your income, expenses, and existing debts. Crafting a comprehensive budget will provide you with a clear view of your financial capabilities and limitations, allowing you to determine a comfortable budget for mortgage payments, property taxes, insurance, and maintenance costs. Remember to factor in the down payment and closing costs."
Improve your credit score: "Building a strong credit profile is akin to laying a robust foundation for your homeownership dreams. Regularly check your credit reports, rectify any discrepancies, and ensure you're making timely payments. A higher credit score can pave the way for favorable mortgage rates and terms."
Save for a down payment: Saving for a down payment is a significant hurdle for many first-time homebuyers. Antonie suggests, "It's a critical point in the journey that often requires discipline and long-term commitment. Educate yourself about different loan options and their varying down payment requirements, and diligently work towards accumulating the recommended 20% of the home's purchase price."
Research mortgage options: "Knowledge is power. Explore the nuances of fixed-rate and adjustable-rate mortgages and help yourself to a serving of professional advice to make an informed choice aligned with your financial objectives."
READ: Try Property24's list of affordability calculators and tools here.
2. What to Consider:
Location and neighborhood: It isn't just about proximity; it's a decision that will shape your lifestyle, your daily commute, and your future plans. Investigate local schools, amenities, and safety aspects, ensuring they align with your priorities.
Property type and size: "Consider your family size, future plans, and your preferences regarding property type and size. Whether it's a single-family home, condominium, or townhouse, the right choice will have a significant impact on your daily life."
Home inspection: "A thorough home inspection is your safeguard against unexpected maintenance costs. Seek out the expertise of trustworthy home inspectors who can uncover any hidden issues and provide you with a clear picture of the property's condition."
Resale value: It's prudent to consider the property's potential resale value. Real estate is an investment, and factors like the neighborhood's appreciation rate and the property's condition play a vital role in your long-term financial stability."
READ: Buying a home: Key tips to avoid common issues
3. How to stay ahead of payments:
Create an emergency fund: "Life is unpredictable, and homeownership comes with its share of surprises. Establishing an emergency fund is a wise move to ensure you're ready for unexpected expenses, allowing you to stay on top of mortgage payments without financial stress."
Budget for ongoing costs: Budgeting for property taxes, insurance, and regular maintenance beyond the mortgage. He says, "Automate payments for these expenses to maintain financial discipline and avoid late payments."
Refinance when beneficial: "Keep an eye on interest rates. If they dip significantly, refinancing your mortgage could lead to lower monthly payments and save you money over the life of the loan. It's a strategic move that can pay dividends."
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