Finding “the one” for and with your buyers translates into asking your buyers the right questions. In a piece recently published by MSN, Sarah Li Cann suggests that agents ask their buyers and sellers these questions:
- What is your total budget?
- A “total” budget includes the sale price, the property taxes, the HOA dues, the homeowner insurance, ongoing home maintenance both inside and outside the house, monthly mortgage payments, renovations, upgrades, etc.
- Also ask whether or not your buyer is preapproved for a mortgage. “ Preapproved” translates into the seller knowing the buyer is not wasting her/his time or that of the agent. It also translates into searching out homes that the buyer can afford rather than homes the buyer would like to buy.
- Is the home in a flood/wildfire zone?
- If yes is the answer here, the buyer may need flood, wildfire, earthquake insurance.
- If yes is the answer here, make sure the buyer gets enough coverage in the event that the buyer has to rebuild…everything.
- Why is the seller selling?
- Is the seller downsizing, relocating for a job, relocating for a life event or health?
- Answers to such questions indicate how motivated the seller is to make a deal.
- What is included in the sale of the house?
- Appliances, furnishings, drapes/blinds?
- The listing description out to spell out exclusions and inclusions but often does not.
- Any additions and/or renovations to the house?
- Answers here offer insights into the condition and price of the home.
- Disclosure statements ought to spell out these details but often do not despite being required by law to do so.
- How old is the roof?
- How old are the appliances and major systems such as HVAC?
- How many days has the house been on the market?
- Any safety/health hazards in the house such as mold, lead paint, radon?
- Is the house comparably priced to similar houses in the neighborhood?
- Is there any history of past insurance claims?
- To make sure, get a copy of the Comprehensive Loss Underwriting Exchange (CLUE) report to see whether or not claims have been filed in the last seven years.
- CLIUE reports offer insights into damage caused by weather, vandalism, etc.
- How is the neighborhood?
- Buyers are buying not just the house but also the neighborhood schools, parks, amenities and the functionality of the HOA.
- Buyers are also buying commute times.
- How are the neighbors?
- Are they noisy, quiet, pet friendly?
- Drive/walk the neighborhood and speak with the neighbors.
- How much are the closing costs?
- Closing costs include loan origination fees, title research, appraisals and administrative costs.
- Closing costs usually run between 2-5% of the purchase price.
- Lenders are required to provide closing disclosures three business days prior to closings.
