If you’ve ever purchased a house, you know that buying a home can be stressful, and home-buyers typically have a million questions for their real estate brokers. Keep in mind, brokers will also need questions answered from prospective homebuyers before they can narrow down the search for potential and suitable properties. Here are some common questions and how to ask and answer them, depending on which role you are in.
What Do I Offer?
Typically, brokers aren’t allowed to tell you how much to offer on a house. Often, they can help in an indirect way by letting you know about comparable homes and their selling prices. Brokers will usually show you homes that are comparable or like the one you’re looking at. If your broker doesn’t, remember to ask and they most likely will. The comparison homes will have similar features, are in similar neighborhoods, or are priced similarly. Comps can show you how much these houses sold for. For example, there’s an identical house to the one you’re considering, and it just sold for x-amount, but you need to consider the fact that the one you’re offering on includes a swimming pool, or has an extra garage, or is more walk-able to town.
Is the Price Flexible?
Choosing a price to offer can be tricky: offer too high and you run the risk of losing money if the deal is accepted too fast. If you offer too low, the seller could be offended and refuse any other offer you make. This depends on the market as well.
If you low-ball a seller, and they have no offers coming in, they may have to accept your next offer, but you still run the risk of offending them. Asking your broker if the price is flexible or how much less the seller will take, is a good way to get a feel for what to offer.
Ask Good Discovery Questions
Asking about the property the home is built on can give you a lot of information. Knowing if the home you’re making an offer on is in a flood plain or not can mean a great deal. Often homes in flood plains require expensive home insurance. Figuring out what type of flood plain it’s in can be important too, some are worse than others. If you weigh all your options and decide that the home is still the one for you, talking to the seller can be helpful to see if you can take over their flood policy.
When making an offer on a home, always consider all types of insurance you may need to inquire about, like forest fire insurance. In some towns, homes outside of the city limits aren’t as easy to insure, so check these things before you make an offer. Your broker will have information about the various insurance types you might want to consider. We would love to answer any questions, give one of our Central Oregon brokers a call today @ 541.383.4360.